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So what happens if the companies don't drop their rates?

The main assumption, and we all know what happens when you assume, is that this whole health exchange will make companies drop their rates to compete. The problem is, states that only have one or two insurance companies will still only have one or two insurance companies. To make the public option self-sustainable, they can't make it THAT cheap, and they will have to give things up to make it viable. What incentive do the insurance companies really have to drop rates in the face of being forced to cover higher expenses?
What are the chances that instead of insurance rates going down, they add 100 new categories to define people as high-risk so they have an excuse to charge them more (as allowed by the bills to offset the removal of pre-existing condition clauses).
If you are required to have insurance by law, and your employer drops coverage, will you be able to pay even more than you already are for the exchange?

 
NotPanicking

Asked by NotPanicking at 7:52 AM on Sep. 10, 2009 in Politics & Current Events

Level 51 (421,172 Credits)
This question is closed.
Answers (22)
  • Jafra, we still don't have the numbers on how much it will cost the average family and what the deductible will be. Why are we in such a rush to sign something that leaves so much untold? Have we really lowered our standards that much?

    QuinnMae

    Answer by QuinnMae at 10:32 AM on Sep. 10, 2009

  • The Health Care System will continue as it is.


    Higher premiums


    Higher Co-payments


    Higers Out-of-packet expenses or Deductibles


    Less Coverage for people with Pre-existence conditions


    Less Coverage for Dental & Prescription Coverage unless you can come up with a lump sum.


     

    bringin

    Answer by bringin at 8:27 AM on Sep. 10, 2009

  • Higher*
    bringin

    Answer by bringin at 8:28 AM on Sep. 10, 2009

  • Employers will be punished when they drop the coverage. I support the mandatory insurance law. Why I should pay for somebody's medical bills?

    Anonymous

    Answer by Anonymous at 8:29 AM on Sep. 10, 2009

  • Employers will be punished when they drop the coverage.

    No they won't. There is no legal penalty - they don't go on some sort of probation, they just pay a fee. A fee that very likely will be cheaper than the cost of providing insurance. You pay $X to the government or you pay $Y to an insurance company. You don't get in trouble if you choose option X instead of option Y.
    NotPanicking

    Answer by NotPanicking at 8:32 AM on Sep. 10, 2009

  • Yes, but the punishment for not providing coverage will cost the employer far less than shelling out their portion of the insurance plans they currently pay for employees.


    So put yourself in a business owner's shoes.


    You can pay less in penalties than you do in current employee coverage and even if you dump your coverage for them, they will still have an "affordable" option and will still have coverage (you know, to lessen the guilt). What will YOU do? My money is on dropping the private insurance coverage and dumping your employees on the public option.

    Anonymous

    Answer by Anonymous at 8:33 AM on Sep. 10, 2009

  • What will YOU do?


    I will pay for the best insurance what is there and no I will not dump my employees!|

    Anonymous

    Answer by Anonymous at 8:46 AM on Sep. 10, 2009

  • Employers will be punished when they drop the coverage. I support the mandatory insurance law. Why I should pay for somebody's medical bills?


    Umm you will be with the public option. When companies drop people and opt to pay the 850 fine instead of the 10k a year per employee millions will be in the public plan. Taxes will have to be raise they will start with the rich who already pay 80 percent of the taxes then move to the middle class. They will have no choice. Medicare will have no money in 5-7 years so they will have to raise taxes. You will be paying either way. If you get to keep your employee coverage you will get to pay taxes on that benefit and get to pay more income tax. Yeah for change.
    Anonymous

    Answer by Anonymous at 8:47 AM on Sep. 10, 2009

  • Unless you are one of the lucky ones making under $12,000 for free care or under $30,000+ for some sort of assistance you WILL be paying for it. Thats what this is all about. Taking your money and passing it around to others.
    I'm not at all sure mandatory will work. They say it will be just like auto insurance but everyone knows people go without auto insurance all the time just betting they will not get caught. What if someone thinks they can't afford the coverage but the government says they make too much(nah that would never happen) so they don't buy it. Well they get caught and their wages are garnished for up to $3800 that year. Thats about $75 a week! The IRS will be in charge of making sure people get the ins. or pay for it. Thats the one group who can easily enforce it since they already have everything they need. Instead of not having insurance, having insurance will be what bankrupts people.
    itsmesteph11

    Answer by itsmesteph11 at 9:01 AM on Sep. 10, 2009

  • Great points ladies..HUM tis what happened here in TN employers said heck with this its cheaper to drop the insurance on the employees and so many were left to go to the government option that the program failed it almost bankrupted the state.

    Itsmesteph EXACTLY..there will be plenty of people who cannot pay regardless of it being mandatory.
    tnmomofive

    Answer by tnmomofive at 9:26 AM on Sep. 10, 2009

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