On Individual Health Insurance Reform, Actuarial Details Matter quoting : Forbes

Although policymakers may debate the finer details and financing of most health insurance programs, the underlying structure is largely sound. In addition, the actuarial profession stands at the front lines with insurers in accepting the risk for any new individual health insurance program. In the employer group market, sophisticated purchasers of health insurance have the resources and knowledge to efficiently purchase insurance for their employees. Providing comprehensive health insurance for more people has long been an important objective for policymakers. Instead of relying on sophisticated purchasers of insurance in long-standing programs, the ACA policymakers in effect created an entirely new insurance market.




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The ACA Increased, Rather Than Decreased, Administrative Costs Of Health Insurance

So, the ACA ended up providing government-subsidized administrative services to health insurance companies – surely the opposite result than the ACA advocates (no friends of insurance companies) would have wanted. The ACA made administrative costs of private health insurance go up, not down. The predicted impact was that reducing administrative costs would lead to lower premiums and lower national spending on health care without having to reduce the quantity or quality of actual health care delivered. (For more details, see my study of administrative costs published in December by the American Action Forum.) Anyway you look at it, the promise of reduced administrative cost by involving the government was a total failure.



collected by :Lucy William

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