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View Diary: Human Lives Lose To Bean Counters: High Risk Pools Closed to New Applicants (117 comments)

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  •  yep, years ago 33% of all healthcare dollars (2+ / 0-)
    Recommended by:
    TheDuckManCometh, Dogs are fuzzy

    went to "administration"  I would guess it is a higher percentage today

    •  It depends... (0+ / 0-)

      ...on technology investments. Most large companies have bled their operational and admin expenses dry (e.g.., salaries, benefits, contracts) by streamlining, consolidation and automation. Companies are operating at a higher quality and efficiency with far less people. The IT investments are expensive but unlike staff that keep getting benefits, sometimes for a lifetime, they're time-boxed and accrue over time to more than the insurer or provider investing but also can be accrued downstream to purchasers of care or accounted into medical rather than admin.

    •  No, administrative costs are capped now for (1+ / 0-)
      Recommended by:
      Dogs are fuzzy

      everyone. Millions of people got rebates last year because insurance companies who did not pay 80% toward health care had to rebate excess or lower the rates to repay it that way.

      However you are right that rates were crazy high especially for individual payers. Biggest companies paid the least...  about 7-10% extra for administrative but smallest businesses and individual policies could go over 30.
      That was the plan with the exchange because everyone who buys a plan from a company is part of the group, that itself driving down the price.
      (But in the meantime is this rule)

      That's part of the delay on that preexisting clause delay. Until everyone is required to get the insurance it would be the already sick who would rush in to buy it and that would shoot up the cost for the smaller pool of people in it...
      That's why these special interim high risk pools kicked in for the interim period. (Kids rates went crazy high when policy changed.. at least in states where I know parents who were buying individual policies for their children) (who themselves had no preexisting condition. Just all rates went up for children)
      2014 seems so long to wait for the exchanges but boy has the setting it up been tricky... especially with so many states missing deadlines while hoping Obamacare would die.

      No new applicants is a bitch...though with that 6 month delay pretty soon we are just 6 months from Obamacare in any case.
      Some states had that 6 month policy for chip as well. Kids had to be uninsured 6 months before they could be considered. New Jersey was one. Really tough.

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