In the world of investing, the term pump-and-dump refers to a "scheme that attempts to boost the price of a stock through recommendations based on false ... statements. The perpetrators of this scheme ... sell their positions after the hype has led to a higher share price."
Put more simply, they get in, "use" the system, and get out, generally at a profit. This costs the company, and it costs the other shareholders.
But what, you may ask, does this have to do with health insurance?
Well, before there was ObamneyCare©, there was MassCare. And an integral part of MassCare has been Guaranteed Issue, coupled with immediate coverage for pre-existing conditions. Or, as the Boston Herald's Frank Quaratiello reports:
"A gaping loophole in state insurance rules that lets freeloaders pick up coverage to pay for expensive surgeries — and then dump it once they’re treated — has cost taxpayers as much as $37 million a year"
There's even a term for this: "jumpers and dumpers.” Jump and dump, pump and dump; tomato, tomahto.
But that's just a Bay State problem, right?
Not so much, "according to a study that warns the same wrinkle in Obamacare could add a staggering $2 billion a year to the deficit-wracked federal budget ... similar provisions in the nation’s new health care plan could cost the government at least $1.9 billion a year starting in 2014 when Obamacare kicks in."
Ooops.
Glad we passed the bill to learn what's in it.
Put more simply, they get in, "use" the system, and get out, generally at a profit. This costs the company, and it costs the other shareholders.
But what, you may ask, does this have to do with health insurance?
Well, before there was ObamneyCare©, there was MassCare. And an integral part of MassCare has been Guaranteed Issue, coupled with immediate coverage for pre-existing conditions. Or, as the Boston Herald's Frank Quaratiello reports:
"A gaping loophole in state insurance rules that lets freeloaders pick up coverage to pay for expensive surgeries — and then dump it once they’re treated — has cost taxpayers as much as $37 million a year"
There's even a term for this: "jumpers and dumpers.” Jump and dump, pump and dump; tomato, tomahto.
But that's just a Bay State problem, right?
Not so much, "according to a study that warns the same wrinkle in Obamacare could add a staggering $2 billion a year to the deficit-wracked federal budget ... similar provisions in the nation’s new health care plan could cost the government at least $1.9 billion a year starting in 2014 when Obamacare kicks in."
Ooops.
Glad we passed the bill to learn what's in it.
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