In fairness, community rating as it is understood by most, only applies to under 65 populations. Still it makes the young subsidize the older and the male, the female. Only in late middle age do the male and female curves cross.
Community rating forthose who have chronic claims was a primary reason the Blues had federal; tax-exempt status. Tis tax advantage was provided due to similar plans not being avail;able commercially.
In 1986, the Blues lost their fedeal ax-exe,pt status primarily becaise tey were offering plans simular to their commercial competitors, abandoning community rating for experience ratimng.
At NPLH, we will fully community rate the employer group, all participants, initially.
Those remaining chronic users of health care maintain the community-rated premium, which is fair for all parties.
Those experiencing low or no claims will be provided discounts every month, such that after 36 months, the discount is 50%; after 60 months, the discount is 80%.
Don Levit
President of National Prosperity Life and Health
Tpabenefit.com
Interesting; a form of underwriting that doesn’t involve reading chicken entrails. I bet it’s a lot more cost-effective. But I wonder if the discounts violate the letter of ERISA/HIPAA, and how long before HHS declares it so.
Regarding tax-exempt status in return for community rating, I have long viewed the employer exclusion as exactly that. Well, maybe not exactly, since it’s a very messy approximation that applies more to middle- and upper-income employees.
JAMA study via Austin Frakt.
Pretty simple stuff. I’m surprised more people don’t get it.
Have a 5 minute conversation with the average voter and you’ll see why they don’t
Don’t need one. I can hear there stupidity from a mile away.
This is why I criticize democracy.
This should expose how the ideological left embraces fairness selectively. Equity should be embraced, not equality.
Quite the growth curve there.
But not surprising
Never is.
That’s a great illustration!
It should be re-printed so more people can see.
Great post john!
Overlay average household savings and average household income for each group and see what fair looks like.
In fairness, community rating as it is understood by most, only applies to under 65 populations. Still it makes the young subsidize the older and the male, the female. Only in late middle age do the male and female curves cross.
Community rating forthose who have chronic claims was a primary reason the Blues had federal; tax-exempt status. Tis tax advantage was provided due to similar plans not being avail;able commercially.
In 1986, the Blues lost their fedeal ax-exe,pt status primarily becaise tey were offering plans simular to their commercial competitors, abandoning community rating for experience ratimng.
At NPLH, we will fully community rate the employer group, all participants, initially.
Those remaining chronic users of health care maintain the community-rated premium, which is fair for all parties.
Those experiencing low or no claims will be provided discounts every month, such that after 36 months, the discount is 50%; after 60 months, the discount is 80%.
Don Levit
President of National Prosperity Life and Health
Tpabenefit.com
Interesting; a form of underwriting that doesn’t involve reading chicken entrails. I bet it’s a lot more cost-effective. But I wonder if the discounts violate the letter of ERISA/HIPAA, and how long before HHS declares it so.
Regarding tax-exempt status in return for community rating, I have long viewed the employer exclusion as exactly that. Well, maybe not exactly, since it’s a very messy approximation that applies more to middle- and upper-income employees.
At the risk of being repetitive, let me note that:
People over 65 with no children at home pay property taxes for public schools;
People under 65 are hit with payroll taxes for Medicare from which they get no direct benefit.
People with extremely sturdy brick homes pay taxes to support a fire department that often goes out to save homes with wood stoves.
This has gone on for 50 years at least and America is still standing.
Once again I resist the effort to calculate every subsidy to the nickel.
We do some things because they make sense for the community as a whole.
Bob Hertz, The Health Care Crusade