“How is Obamacare going to halt the insurance companies’ overcharging when these bills require people to buy health insurance?
A) it would be somewhat harder for companies to get your money and THEN deny coverage.
B) By mandating insurance, it puts the people who are now healthy enough and go without insurance (likely the least expensive customers from the insurers’ PoV) back in the system. Overall expenses for the companies may go down.
C) The public exchanges allow for small businesses to organize and buy insurance on more preferable terms - an insurer may be willing to make more compromises for selling insurance to a company with 10 employees and a block with 5000 participants.
There are probably others. Personally, I preferred an option where the state ensured the existance of a large non-profit alternative (public option), but some people said that was too dangerous. Nice Schlock avatar, btw.
“How is Obamacare going to halt the insurance companies’ overcharging when these bills require people to buy health insurance?
A) it would be somewhat harder for companies to get your money and THEN deny coverage.
B) By mandating insurance, it puts the people who are now healthy enough and go without insurance (likely the least expensive customers from the insurers’ PoV) back in the system. Overall expenses for the companies may go down.
C) The public exchanges allow for small businesses to organize and buy insurance on more preferable terms - an insurer may be willing to make more compromises for selling insurance to a company with 10 employees and a block with 5000 participants.
There are probably others. Personally, I preferred an option where the state ensured the existance of a large non-profit alternative (public option), but some people said that was too dangerous. Nice Schlock avatar, btw.