tag:blogger.com,1999:blog-8512362.post8321371686853922043..comments2024-03-10T13:59:19.230-04:00Comments on xpostfactoid: When employers drop coverage: Two brokers' perspectives on the individual market in the ACA eraAndrew Sprunghttp://www.blogger.com/profile/17601269968798865106noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8512362.post-41522663324466094252015-02-01T15:39:49.761-05:002015-02-01T15:39:49.761-05:00On the bronze plans described above for $801 a mon...On the bronze plans described above for $801 a month, the family pays $9600 a year in premiums and another $6250 in deductibles before the insurer pays a nickel (other than for preventive exams).<br />So the first $16,000 in expenses is borne by the insurers.<br /><br />If the insurer gets 20 people with no big claims and one person with a $320,000 claim, they break even (ignoring admin costs, reserves, and profits).<br /><br />With the ACA reinsurence, the insurer pays only about $35,000 of a $320,000 claim (I think)<br /><br />So this is wildly profitable for the nect 2 years.<br /><br />What would I do?<br /><br />a. Make the federal reinsurance a permanent thing<br /><br />b force insurers to keep premiums down to $100 a month per person for this high deductible crap. If they do not like that, create a high deductible version of Medicare for those under 65.Bob Hertzhttps://www.blogger.com/profile/09536056115489355307noreply@blogger.com