Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (90949)	9/30/2007 6:12:58 PM
From: neolib	Respond to of 306849

Unfortunately in our case the insurance industry not only allows to cover statistically insignificant events, but also manages to subsidize itself off the public, that is the real problem imho. Not clear. The problem is that a significant fraction walking in off the street without insurance end up stiffing the provider. So the average cost of those paying the higher rate might not be much different. The Infinite Deductible Plan would need to keep tabs on your credit score. It would basically be a sign to the provider that you are a reliable client (they would not know what your deductible is). If you default on care payments, you loose "coverage". AS such it is a useful product for those who feel they can afford to self-insure, but want the price advantage insured people get. I really think the idea has merit, although the potential customer pool might be small.

To: Lizzie Tudor who wrote (90949)	9/30/2007 10:54:21 PM
From: Webster Groves	Read Replies (1) \| Respond to of 306849

The "buying pool" concept is an artifice created by the insurance provider to justify its claimed benefit. Their is actually only one buyer - the carrier. Ideally the insured should be charged for service and be reimbursed by the carrier for contract amount, but that's not how it works. Carriers negotiate rates with hospitals to cover real costs plus a profit to the carrier. Hospitals accept the carrier's negotiated amount because they can still make a profit. Hospitals mark up their product and make an "adjustment" to reach the carrier's negotiated rate. The hospital then attempts to charge walk-ins and the unsophisticated the full "rack rate" to increase its profits, a large part of which is lost to non-payments by all those (uninsured) emergency room cases. Historically, a properly run insurance carrier made its profits solely by holding your money for a period of time, premiums and costs should balance out. Nowadays the carrier wants to cut those costs without changing any other parameters in the game. The insured is not a player in this game, only a piece on the board. wg