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View Diary: A Reminder about that Republican HCR Plan (126 comments)

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  •  I would point out (0+ / 0-)

    that is precisely what caps and the medical loss ratio aim to prevent. 80% of proceeds have to be devoted to care, and the amount of income is capped by out-of-pocket expenses and premiums as a percentage of income. Those three institutes represent an absolute cap on the amount of money in the system.

    Iuris praecepta sunt haec: Honeste vivere, alterum non laedere, suum cuique tribuere. - Ulpian, Digestae 1, 3

    by Dauphin on Fri Jan 29, 2010 at 08:22:24 AM PST

    [ Parent ]

    •  As it is now, large insurance companies spend (1+ / 0-)
      Recommended by:

      more than 80% of proceeds for care.  According to an NPR study, it was actually 82%.

      But that is my point -- when your percentage is fixed, you increase volume.

      For example:

      11 people at $1,000 each, 80% to care = $220 to company
      as opposed to
      10 people at $1,000 each, which comes to $200.

      Or, as you go from year to year in the absence of real competition,

      Expensive treatment a at $10,000 = $2,000 as opposed to
      cheap treatment b at $1,000.

      The only way to avoid that problem is to place limits on the treatments that doctors can prescribe.

      That is absolutely something that needs to be done -- but I don't see a whole lot of people talking that up in public.

      Free speech? Yeah, I've heard of that. Have you?

      by dinotrac on Fri Jan 29, 2010 at 08:33:42 AM PST

      [ Parent ]

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