posted on Jan, 8 2014 @ 10:34 PM
reply to post by rickymouse
It's the new rules. First off, they are now operating at a mandated 80/20 margin - 80% to pay for services, 20% for their overhead. If they were
operating at say, 60/40 chances are they may be looking to double premiums to try to make that 40 become something more like the new 20% or play
around with their numbers that way, especially if they were already operating their business on a tight budget.
Then, you have all the new paperwork they will have to do to keep the government informed. Trust me, anytime you deal with government, it takes a
mountain of red tape, and all the people necessary to keep up with it. This is more cost to the company that has to come out of that 20%. See
Then, you have to try to buffer yourself against all the people who will call after they find out they are sick and demand to be covered. This
represents an enormous pool of potential loss for the company because for every single person who does this, the company has no chance of even coming
near to breaking even with them. That means that everyone else who buys early like insurance buyers are supposed to do will have to pay more to try to
keep those losses from sinking everyone by sinking the company and since there is no way to know how many people are going to try to take advantage of
the system in this way (although it has been widely publicized that you can), they have no idea how much they need to try to save in advance. This is
also going to add to the cost.
So, I guess that about does it, and I'm sure there are more that I'm not thinking of at the moment.