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Politics : Formerly About Advanced Micro Devices
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To: bentway who wrote (843450)3/18/2015 12:44:46 PM
From: i-node  Read Replies (1) of 1575424
 
>> the majority unharmed subsidizing the minority harmed is the BASIC PRINCIPLE behind the concept of insurance.

You don't understand insurance. And I doubt you can be MADE to understand it. But here goes.

The idea of insurance, of all kinds, is pooling of risks so as to limit the damage to any one participant.

We are not merely pooling risks. We are now pooling cohorts, a totally different thing. When high-risk individuals are pooled with low-risk individuals, you have, effectively have a transfer of money from the low-risk cohorts to the high-risk cohorts, all other things being equal.

And that is why there is such a big problem with the exchanges today. Not "enough" healthy people signed up, so Obama had to steal $3 Billion from taxpayers and give it to the insurance companies to prevent them from raising premiums and potentially causing an immediate death spiral.

Obama is trying to get enough healthy people to sign up before the exchanges collapse. Ultimately, it appears the collapse is going to happen or taxpayers are going to be called upon to dump money into the health insurance companies from now on.

It is a terrible mess and the nation's interests are best served if the court kills the exchanges. Don't see it happening though.
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