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How would 'government' backed insurance work (serious question read whole question before answering)

I have private insurance through my company. I learned from them that its not the insurance company who pays for my bills. The insurance company just negogitates the rates. So rather then paying $25K for my hospital bill they only pay $9K. That 9K is from my employers bank account.

So reading all these insurance things it sounds like the government plan is to get insurance premiums lowered which is great but then its not techincally insurance. Wouldn't the person with coverage have to pay for their medical? If the government picks it up how will they ever be able to afford it? I either am totally missing something or there are alot of smoke screens.

Answer Question

Asked by Anonymous at 12:21 PM on Feb. 22, 2010 in Politics & Current Events

Answers (5)
  • It sounds like your company is a self-insured group. In that case the insurance company merely handles the paperwork. Your company puts money aside to cover their employees health care. While this does work for many companies, for others one or two people with a serious illness can bankrupt the plan.

    Answer by mancosmomma at 1:07 PM on Feb. 22, 2010

  • If you're asking about the plans which have been proposed for health care since early 2009, the gov't-paid programs would work like Medicare does - gov't pays the bill, but only pays 85%. This means the clinic is underpaid for every gov't patient, and is forced to raise the rates for people who are privately-insured ... which equals the insurance companies are forced to pay more and more for the same services, and they have to raise their rates or else go out of business and leave all their clients without health insurance. See the chain reaction?

    (We can see how ridiculous it is to portray the ins. companies as evil greedy exploiters ! Many of them have a profit margin of 3% - FAR less than the 17% or 25% of the normal business world.)

    Anyway, most folks will be REQUIRED to pay monthly premiums on the 'gov't' plan as well as on private plans. We'll pay high taxes like Canada / UK, but we'll ALSO pay monthly premiums.

    Answer by waldorfmom at 2:47 PM on Feb. 22, 2010

  • Our co. health ins. is done the same way as yours. I think you are right and there are a lot of smoke screens! I am concerned that companies will not be able offer ins. to us any more, the governments' taxation will be so expensive, that companies will have to stop offering ins. to us. We will be forced on the gov't plan. We will pay more and get less, because once again, we will be paying for those who DON"T or can't pay their way. We will get much less personal care and I imagine we will be spending hours trying to get appt's and hours waiting to see a nurse practitioner, if we are lucky...


    Answer by agentwanda at 4:29 PM on Feb. 22, 2010

  • If you're asking about the plans which have been proposed for health care since early 2009, the gov't-paid programs would work like Medicare does - gov't pays the bill, but only pays 85%.

    And this is why many doctors NO LONGER accept Medicaid/Medicare patients--at least the really good ones! I don't know about you, but I want the best of the best doctors when it comes to mine or my family's health! The old saying..."You get what you pay for" is oh, so true!! :o)

    And the money that whatever the government actually does pay on behalf of it's "clients" is generated by taxes, and (with ObamaCare) paid PREMIUMS--that EVERYONE will be forced to pay--especially the young and healthy people who are FAR less likely to "cash in" on their benefits. As for the unhealthy people on the program--their care will be "delayed" and should they die waiting for treatments...oh well!

    Answer by LoriKeet at 4:54 PM on Feb. 22, 2010

  • I think a lot of people don't know how their insurance works. I just want to scream everytime I hear or see something saying if you want to keep your healthcare you can and this will save you money. If you have an employer who shares or pays for your insurance they have every right to change or drop(so you have to go to the public or exchange option) your insurance. Another thing prompting their changes would be the new fees insurance companies will be required to pay. This will obviously raise insurance prices, causing your employer to change your plan or make you pay a higher deductable or co pay. Obamas plan also calls for raising the prices of certain drugs to help pay for his plan which very well could affect you. There are many reasons you might lose what you have so you'd be well off to not believe that line Obama and the Libs keep throwing out.

    Answer by itsmesteph11 at 9:32 AM on Feb. 23, 2010

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