The ACA and actuarial science conflict with one another.
By Admin | October 12, 2016
The largest health insurance companies are backing out of markets, changing their plans, and raising their costs at unprecedented rates, yet are still losing money. And it may not be their faults, according to an op-ed piece by D Magazine.
When it comes to the numbers, the ACA, although well intentioned, is ignoring some basic laws of how money behaves in the healthcare landscape.
For example, co-ops were launched to compete with insurance companies, but they heavily relied on government subsidies. When that money source dried up, the co-ops did, too. Now, only six remain.
Claims history also shows that a 64 year-old man’s healthcare costs 6.5 times as much as a 25 year-old man’s. The ACA outlaws spending over 3 times as much for the highest costing patient than it does for the lowest.