Quote:
Originally Posted by tiggertsi
where do you get that either of those have any thing to do with insurance premiums going up because on non health care insured people getting medical treatment? can you show me the mechanism that would do just what you describe? i would love to see this described, but i think it's a huge leap to say what you describe IS the reason why insurance premiums and the cost of healthcare in general have steadily risen without looking at the profit factor, the inefficiency factor, the jobs program factor, the fleecing of money factor and a whole myriad of other factors.
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This is very simple.
Example: Uninsured (or under-insured) person gets hit by car. Person (or insurance company) gets hit with a bill for all medical services provided. Person (or insurance company) does not or will not cover the cost.
Now here is where things change - Hospital insurance company may sue person insurance company. Lawsuits are expensive and generally they will not recover the "full" amount of services rendered. Unless it is an egregious bill - they are going to try and settle which means they are not getting the full amount they are seeking (then write whatever the difference is as a "loss").
Scenario two - Hospital insurance company sues person with little to no money - (if they can find the person) person declares bankruptcy and all his debt is alleviated. Therefore hospital insurance is still stuck with an unpaid bill. They can write off the loss only to a certain extent... so that leaves them with x amount of dollars unpaid for services rendered.
So, when the insurance companies (on both sides) have unpaid or underpaid bills (or they lose their claim for whatever reason), they raise premiums on those who do pay premiums and have insurance to cover their losses.
Do some research on premium hikes for the 10 years before the ACA, then compare those to the (hopefully) smaller hikes we will now see.