Thursday, August 15, 2013

Truth hurts

It isn't often that we praise insurance companies for intellectual honesty, but every once in a while one comes through. Case in point: Blue Cross Blue Shield (NC). The Tar Heel State's largest carrier "is warning potential patients about rising premiums and other problems."

While this may seem self-evident to anyone who's been paying attention to the train wreck, there are apparently still people who don't understand that adding millions of previously uninsured with no underwriting and using Community Rating models to set premiums is a recipe for disaster.

BCBS notices something that we've been saying for a while: that younger, healthier folks will likely choose the nominal fine penalty tax over the exorbitant premiums for a product they likely don't believe has much value.

And then there are the dim-witted folks who "call it fear mongering aimed at changing aspects of the law the insurance industry doesn't like, like the $100 billion in new taxes the industry will have to pay over the next 10 years."

Um, guys? The "industry" doesn't pay any taxes. They never have and they never will. No business pays taxes, ever. Sheesh.

[Hat Tip: FoIB Jeff M]
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