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It's necessary given that the ACA restricts insurers for rejecting people for preexisting conditions. This only really works in a country where everyone has ins
by potatoyogurt 10y ago
It's necessary given that the ACA restricts insurers for rejecting people for preexisting conditions. This only really works in a country where everyone has insurance. Otherwise, why not just hang around without insurance until you get really sick, then purchase insurance at that point? If this happens, it drastically distorts the insurance market and makes insurance even more affordable, because people who have insurance will be disproportionately sick.
It may seem like a tax on working people, but really, it is a payment for a very real benefit: a dramatic change in your personal healthcare risk. When you can purchase health insurance at any time even when you're unhealthy, you are essentially being granted an insurance policy for expensive, chronic conditions without even having to purchase anything.
- TearsInTheRain 10y agoYou can't simply purchase Insurance and be covered next day. Insurance companies can have a waiting period of up to 3 months before providing you with benefits. It's not really a good idea to wait around with cancer for 3 months until you get your treatment covered
- toomuchtodo 10y agoThe ACA actually makes it very easy to purchase insurance only when you need it (you've moved, your employer drops your coverage), and drop it when you don't (you can go two months per year without insurance without penalty). This is a fundamental flaw in the program. You must mandate participation through payroll taxes, but also ensure services can be affordably provided to participants. Insurance companies are still raking 20% off total premiums paid; that's money that could go directly into providing care.
- cmdrfred 10y agoKeep in mind that 20% is after executive salaries and bonuses as well, at best you are getting 75 cents on the dollar.