We have finally figured out the solution to health insurance costs. All you have to do is reduce the premiums. As we just learned, the Government High Risk Plan (PCIP) has decided to reduce rates by 40% so more people who have decided to go without health insurance for over 6 months will jump for the chance to spend their money for a product that they apparently don’t see any value to. Never mind the financial basis for how insurance costs are derived. I remember having some actuarial science while in college and if I recall correctly, insurance costs are determined by the chance of an incident occurring. So, I assume, the chances of these individuals, who by the way, are required to have a pre-existing condition, developing or having an incident, must also have decreased by 40%. So somehow our government has been able to single out 17 states and determine that claims will reduce by 40% in some cases. So there you go, why can’t we get all carriers to just reduce their premiums by 40% because we need more people to buy insurance? Am I the only person who thinks that if a person is irresponsible enough to go without health insurance that lowering the price really is not going to get them to purchase. Let’s see, if I haven’t had coverage, but I can obtain coverage whenever I need it, why wouldn’t I just wait for the “incident” to occur before I go obtain the coverage. And then, once the “incident” is over, why wouldn’t I just drop the coverage and wait until the next “incident”. And since the rates are so low, why are any of us purchasing our health insurance coverage from anyone other than the PCIP. You don’t have to pay premiums for six months or longer as long as you don’t have any “incidents” and you then are guaranteed coverage for your healthcare. In fact, you are just wasting your money if you pay health insurance premiums. Just wait until you get sick or hurt and purchase the PCIP. Since the government is in such a giving mood, why are we working or running businesses. Why don’t we just sit back and let Old Uncle Sam provide us everything. Food, Shelter, and Free Health Care are now available to everyone and government will pay the bills. And since the government can print money, it will never run out. We have finally developed paradise.
Seriously, we are the government and we don’t have unlimited resources. These individuals that go on to the PCIP will incur large claims and the amount of premiums that have been charged will not be sufficient to pay those claims. Any guess where the money will come from to pay all those claims? Yes, they will come out of our taxes. That is the only way the government can keep its promise to these individuals. I for one am tired of the mismanagement of our resources and this example of pandering to those that have decided to forgo the protection of health insurance but I am sure have a cell phone, cable, and other items not necessary for basic needs. At some time, Old Uncle Sam has to show some “tough love” and let these individuals grow up.