Why require people to buy health insurance?
The 'individual mandate' expected in any final healthcare bill is meant to spread the cost and risk and to make sure that people don't wait until they're ill to buy coverage.
By Kim Geiger and James Oliphant
LA Times
December 21, 2009
Reporting from Washington
Any final healthcare bill is likely to require that virtually all Americans obtain insurance. This "individual mandate" has stirred some controversy and confusion. Here are some questions and answers.
Why require everyone to buy insurance?
All insurance is based on the idea that most of the time, most people are not filing claims. As it applies to healthcare, supporters say, most people are pretty healthy most of the time, but eventually almost everyone incurs major medical expenses. If only sick people bought insurance, the system would collapse because plans would be forced to pay out more than they took in. And since nearly everyone who develops a serious medical problem gets treated (with or without insurance), the cost of treating the uninsured is passed on to other people. In effect, those with insurance are helping pay the costs of those without it.
What benefit do I get from being required to buy insurance?
Making the underlying insurance mechanism stronger by getting more people into the system assures that you will get coverage when you face big medical bills. With everyone paying into the system, companies will get premiums from millions of new clients. That income will make it possible for the companies to stop denying coverage to people who have a preexisting condition or are likely to get sick in the near future -- smokers or middle-age people at risk of heart disease, for example.
(Continued here.)
By Kim Geiger and James Oliphant
LA Times
December 21, 2009
Reporting from Washington
Any final healthcare bill is likely to require that virtually all Americans obtain insurance. This "individual mandate" has stirred some controversy and confusion. Here are some questions and answers.
Why require everyone to buy insurance?
All insurance is based on the idea that most of the time, most people are not filing claims. As it applies to healthcare, supporters say, most people are pretty healthy most of the time, but eventually almost everyone incurs major medical expenses. If only sick people bought insurance, the system would collapse because plans would be forced to pay out more than they took in. And since nearly everyone who develops a serious medical problem gets treated (with or without insurance), the cost of treating the uninsured is passed on to other people. In effect, those with insurance are helping pay the costs of those without it.
What benefit do I get from being required to buy insurance?
Making the underlying insurance mechanism stronger by getting more people into the system assures that you will get coverage when you face big medical bills. With everyone paying into the system, companies will get premiums from millions of new clients. That income will make it possible for the companies to stop denying coverage to people who have a preexisting condition or are likely to get sick in the near future -- smokers or middle-age people at risk of heart disease, for example.
(Continued here.)
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1 Comments:
Ummm, the obvious was left out such as the Constutitionality of such legislation. But, of course, we just have mob rule in this country. The majority gets to do whatever they want whether or not its Constitutional. The Constitution has been eviscerated to the point we no longer have a federal government but a command-and-control national government. We don't even need states or a US Senate any more. It's mob rule, baby. And the obsequious masses without a shred of objetivity reminds me of fainting men and women at the sight of Hitler parading through the streets in 1930s. Just like Hitler keeping the trains moving, Obama is taking care of us alll through by taking over the health insurance industry.
I sure hope Geiger and Oliphant are first in line to buy government health insurance as well as Tom Maertens, Leigh Pomeroy and Joe Mayer. Put your money where your mouth is, boys. Get rid of whatever insurance you have now and buy a federal policy. I'll be anyone one of you a dinner at the restaurant of your choice that you won't buy government insurance.
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