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Will be very interesting to watch financial reports from health insurers. Premiums are the same, despite (almost) everyone consuming less health services. Can

Will be very interesting to watch financial reports from health insurers. Premiums are the same, despite (almost) everyone consuming less health services. Can Covid costs (at current patient levels) make up for the loss of other claims? I'm doubtful, especially since some Covid costs are evidently borne by the federal government. The suffering of hospitals is circumstantial evidence that insurers are paying out less overall.

Spooky23 7y ago
No, the covid costs are actually not terribly high. The other thing is that as millions of employees get laid off, millions of health insurance premiums stop getting paid.
- floatrock 7y ago
  > as millions of employees get laid off, millions of health insurance premiums stop getting paid. Failure mode of a system where healthcare is tied to employment -- works as long as people keep shuffling around, shatters when a systemic black swan comes along. And no, cobra doesn't address it. It's just a patch. Anyone actually pay cobra for more than a month or two? You quickly realize just how expensive employer group plans can be for an individual.
  - SiempreViernes 7y ago
    > shatters when a systemic black swan comes along Well, whatever colour the swan is, a pandemic is no any unprecedented crisis. It's frankly more predictable than large scale earthquakes, but many people simply didn't give a shit to plan for it in advance.
  - abandonliberty 7y ago
    >a systemic black swan comes along Nassim would like people to stop saying this. I view him as an authority on the subject. https://mobile.twitter.com/nntaleb/status/1244946738739179520 https://mobile.twitter.com/nntaleb/status/124494673873917952...
cbzoiav 7y ago
Although surely a lot of those procedures will just get pushed back until after the pandemic? Meanwhile there may be costs stemming from complications where the treatment was delayed.
lotsofpulp 7y ago
ACA requires insurers to refund premiums if they do not spend at least 80% of the premiums on healthcare. See here for more details: https://www.cms.gov/CCIIO/Resources/Files/Downloads/mlr-report-02-15-2013.pdf https://www.cms.gov/CCIIO/Resources/Files/Downloads/mlr-repo...

Spooky23 7y ago

No, the covid costs are actually not terribly high. The other thing is that as millions of employees get laid off, millions of health insurance premiums stop getting paid.

floatrock 7y ago
> as millions of employees get laid off, millions of health insurance premiums stop getting paid. Failure mode of a system where healthcare is tied to employment -- works as long as people keep shuffling around, shatters when a systemic black swan comes along. And no, cobra doesn't address it. It's just a patch. Anyone actually pay cobra for more than a month or two? You quickly realize just how expensive employer group plans can be for an individual.
- SiempreViernes 7y ago
  > shatters when a systemic black swan comes along Well, whatever colour the swan is, a pandemic is no any unprecedented crisis. It's frankly more predictable than large scale earthquakes, but many people simply didn't give a shit to plan for it in advance.
- abandonliberty 7y ago
  >a systemic black swan comes along Nassim would like people to stop saying this. I view him as an authority on the subject. https://mobile.twitter.com/nntaleb/status/1244946738739179520 https://mobile.twitter.com/nntaleb/status/124494673873917952...

cbzoiav 7y ago

Although surely a lot of those procedures will just get pushed back until after the pandemic? Meanwhile there may be costs stemming from complications where the treatment was delayed.

lotsofpulp 7y ago

ACA requires insurers to refund premiums if they do not spend at least 80% of the premiums on healthcare. See here for more details: https://www.cms.gov/CCIIO/Resources/Files/Downloads/mlr-report-02-15-2013.pdf https://www.cms.gov/CCIIO/Resources/Files/Downloads/mlr-repo...