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It’s Called “reinsurance” and it’s already implemented in many states for cases such as these (million dollar payouts) since post-ACA an insurer could go bankru
by votepaunchy 8y ago
It’s Called “reinsurance” and it’s already implemented in many states for cases such as these (million dollar payouts) since post-ACA an insurer could go bankrupt on a single customer with a pre-existing condition.
https://en.m.wikipedia.org/wiki/Reinsurance https://en.m.wikipedia.org/wiki/Reinsurance
- jjoonathan 8y agoPrivatize the gains, socialize the losses!
- refurb 8y agoReinsurance is entirely private, not sure what you mean by "socialize the loss".
- jjoonathan 8y agoThat's what I previously understood to be the case, but the post I replied to suggested something different -- that states were getting in on the reinsurance game. That's what I object to. Theoretically, it would be possible for states to do this responsibly in a manner that benefited everyone, but if I weigh the extent to which our system allows interested parties to pay for legislation against the extent to which the public is likely to make reinsurance rates a ballot issue, I can't help but put the probability of a responsible implementation at about 1-2% and the probability of "privatize the gains and socialize the losses" at 98-99%.
- nradov 8y agoIt's not possible a single insurer to go bankrupt due to a single expensive customer. State insurance commissioners wouldn't allow such a financially fragile insurance company to sell policies in the first place.