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Because of the way insurance prices are structured post-ACA, if you are old you are getting a big underwriting subsidy. If you are a typical billionaire, it is
by bjterry 10y ago
Because of the way insurance prices are structured post-ACA, if you are old you are getting a big underwriting subsidy. If you are a typical billionaire, it is cheaper to purchase insurance than it is to self-insure, because part of your costs are being borne by younger premium holders. If you are a billionaire in your 20s you should probably self-insure for the same reason.
Under the ACA the maximum ratio between insurance rates for old and young is 3:1, but the Society of Actuaries estimates that healthcare costs for the elderly are roughly 4.8 times as expensive[1].
1: Referenced here on page 22: https://www.cbo.gov/sites/default/files/114th-congress-2015-2016/reports/51130-Health_Insurance_Premiums.pdf https://www.cbo.gov/sites/default/files/114th-congress-2015-...
- mgkimsal 10y agoPerhaps removing the 'lifetime caps' on most services changes this? I'd have thought, for example, if there's a lifetime cap of $10m on services from my insurance company, and I have, say, $50m in an account just for my medical needs, I'm more than self-insured compared to what I'm protecting myself from with insurance. It seems 'lifetime caps' are largely gone for most services now. EDIT - thanks for your reply.