Proactive Healthcare Insurance
At University, my human medical physiology Professor said the best way to maintain and improve health is exercise and dieting, but 21st century people are lazy and prefer a pill for that. The result is long term healthcare costs will continue to rise; it’s much easier to be a useless bag of mostly water than a productive bag of mostly water.~paraphrased Star Trek
The Big 5 healthcare insurance corporations by market cap are United Healthcare Inc, Anthem, Aetna, Cigna, and Humana. The Big 5 controls around 90% of the healthcare insurance market. In 2017, the Justice Department miraculously moved to block the Aetna-Humana merger as well as the Cigna-Anthem merger. If the Big 5 mergered into a Big 3 then they’d have even more control than they already do to manipulate healthcare insurance costs.
Before the Patient Protection Affordable Care Act (ACA) colloquially known as Obamacare became law in 2010, USA healthcare insurance corporations were reactive business models like all insurance models. With the passage of the ACA law, the government is taking a proactive healthcare insurance step towards routine human maintenance. Like we tune up and/or maintain our cars to prevent future catastrophic events then so should we maintain our bodies with routine blood tests, healthcare education including safe sex and healthy diet, immunizations, and exercise recommendations. To control long term healthcare costs for the benefit of the consumer then we must maintain and improve our current ACA proactive healthcare insurance law.
All USA taxpayers pay the burden of emergency room (ER) visits for the uninsured. We’ve been collectively paying the uninsured visits fine for years. Now, the ACA law requires all USA citizens to have insurance or pay household fines. The fines are actually reducing our collective ER fines, smart law change. We all will collectively suffer less from uninsured ER visits going forward.
Insurance is the equivalent of a rainy day and/or emergency fund. Insurance is only supposed to be used as a means of last resort. For example, if a tree falls on my car and it was an accident then my car insurance will replace my car and most likely increase the premiums.
A premium is a monthly payment to insurance corporations to protect our future junk in case of an accident. Premiums include estimated future costs plus desired and/or government regulated profit margin based on populations, age, gender, race, demographics, and historical accident/genomics data. Insurance corporations employ actuaries to model the premiums using statistical analysis.
Insurance corporations then invest the premiums collected into mid-long term bonds while keeping a fraction for Security and Exchange (SEC) regulated reserves. For insurance corporations and banks, the SEC usually requires a minimum reserve of 1%.
Effective October 30, 1975, the reserve requirement against member bank time deposits with an original maturity of four years or more was reduced from 3 percent to 1 percent.
Both banks and insurance corporations are great businesses to run because they’re government sponsored legal Ponzi schemes. Insurance corporations pay existing clients with new premiums, the definition of a Ponzi scheme. However, the government gets a cut so it’s ok. It’s how Bernie Madoff went under the radar so long; he bribed the proper Congressional cowards.
Insurance corporations are highly profitable because their business model is reactive. Insurance corporations collect payment upfront to protect our materlistic junk from future catastrophic natural disasters, accidents, and other spills. If no accidents then the insurance corporations keep investing our monies and sharing the income via shareholder dividends. Insurance corporations resist payouts until absolute irrefutable evidence is produced.
The 3rd richest person in the world, Warren Buffet, started his megafortune in the insurance industry. Insurers are the sharks of the business realm, and healthcare insurers are the great white sharks.
The Big 5 healthcare insurance corporations don’t like the proactive ACA healthcare insurance law because insurance is meant to be reactive. The proactive Obamacare law has helped 20 million low and middle income as well as previously uninsurable consumers get coverage. Proactive healthcare consumers used their coverage as intended which spiked insurers overall costs.
The goal of Obamacare is to reduce long term healthcare costs for consumers and control premiums going forward. For the first 6 years, Obamacare did a good job of controlling premiums because the Big 5 insurers participated in the healthcare exchanges. In 2017, the Big 5 dropped out of most the ACA marketplace exchanges eliminating loads of competition, so the remaining healthcare insurance corporations increased premiums by 21% and 17% for the bronze and silver plans respectively, according to HealthPocket.
When there is little competition in the healthcare exchanges then corporations can and do increase premiums significantly, and the reverse is true. Proactive ACA healthcare insurance coverage led the Big 5’s profit margins to significantly shrink in the short term. We live in a short term finance and capital markets world. If institutional investors aren’t happy with their short term investments then they complain and reduction in this case example was the result.
Shareholders are greedy flies, the Big 5 had no choice but to screw the majority to appease their 1%ers. The Big 5 decided it’s not in their best interest to help people, so they walked off the Obamacare healthcare exchanges.
It doesn't make sense for the government to say it wants to control costs while limiting the legal ways in which to die earlier. For example, only 17% of USA citizens are cigarette smokers. Cigarette smokers tend to die younger than retirement age non-smokers. It would be a long term Medicare and Social Security pension savings benefit for the government to promote Big Tobacco as well as Big Soda. However, Big Tobacco corporations aren't allowed to publicly advertise coincidentally allowing Big Tobacco corporations to thrive. If the government was serious about long term healthcare cost savings then they'd legalize all drugs and promote them. ☺
The ACA healthcare insurance law continues to share responsibility of uninsured ER visits with fines, share responsibility of wealth redistributions, and shared responsibilities of helping our less fortunate. It’s not the best healthcare insurance system on Earth because the Congressional cowards allow the Big 5 to dictate healthcare insurance practices, but the ACA law is the best of a broken system. Proactive healthcare is the way forward!
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