Republicans want to sell you junk health insurance plans.

[Yavin4]

There's only one way to make a profit in the health insurance business. Maximize premiums. Minimize paying out for your health care. That's the business model.

Under a Republican health care plan, health insurance companies would be able to set up in states with low, or even no, regulations on them. Which means that they can charge super high deductibles which will make your insurance worthless. For example, they will sell plans that offer low premiums, say $50 a month, but the deductible can be as high as $100,000 which means that your health insurance company won't starting paying until you have more than $100,000 worth of health care bills. In essence, people will be paying $600 a year for no effective coverage.

Also, these low regulatory states may allow these companies to not have the capital on hand to pay off claims as other states do. So, these companies could collect premiums and literally steal the money. When the claims come in and they don't have the cash to pay them, they will be able to declare bankruptcy and start all over again. It won't take much to buy off a rural state legislature to look the other way.

What about blue states requiring only state regulated insurance plans be sold in their states? Answer: The Republicans' plan would forbid that on a federal level.

Why would people buy junk plans? Answer: Why would people take on sub-prime loans to buy a house? Why do people use payday loans? People are desperate and think that a junk plan protects them.

Wouldn't healthcare-related bankruptcies skyrocket? Answer: Yes, they would and our healthcare costs would also skyrocket as healthcare providers would have to recoup losses from fewer and fewer existing paying customers.

Ah, but wouldn't this bring about a Sarandon? Answer: A Sarandon is a situation where things get so dire that the people take to the streets demanding change. No, it wouldn't. Republicans are adept at blaming non-white people for every problem in America. Go back and look at the early comments during the housing crisis of 2008. Republicans blamed the Community Reinvestment Act for the collapse. Claiming that forcing banks to lend to African Americans was responsible for the downfall, not the greedy banks.

[Takket]

1. What's the source of this information?

[Yavin4]

3. Recent financial history and scandals. n/t

[ProfessorGAC]

2. And Suckers Will Buy Them

Those plans are exactly what the doctor ordered (sorry for the pun) when it comes to the ilk that would vote for those slimy rats with a R after their name.

Those plans are the equivalent of a "get rich quick" scheme. Pay for protection that covers almost nothing on a wild bet that one will never get sick or hurt.

Only people dumb enough to vote R would believe that an insurance plan that cheap is really worth buying.

[Yavin4]

4. There's no "wild bet"

It's guaranteed profit. Operating any unregulated insurance business allows you to steal from the public without ever having to pay out ANYTHING, and even if you have to pay, just declare bankruptcy and start all over.

A lot of Americans really do believe that their race protects them from charlatans.

[ProfessorGAC]

6. The Wild Bet. . .

. . .is on the part of the buyer, not the insurance company.

Your statement is why it IS a wild bet on the part of any consumer that buys into such a policy.

[wiggs]

5. Caught a bit of gopr on radio yesterday saying that health care premiums are going down,

without the qualifier that a larger percentage of junk policies are being sold.

[Wellstone ruled]

7. Watch for your Phone ID's for numbers

with 605 area code. South Dakota College Campus Sales Boiler Rooms.

[gibraltar72]

8. Made my living in insurance.

Their plan has always been to sell unregulated policies. Average consumer has no idea what a good insurance plan actually covers. They will sell plans with stated benefits. It will sound like a lot of money to rubes who don't know the cost of medical care. They will leave a huge gap for victims to cover ultimately. The cross state competition thing was to let companies that are licensed in any state to sell nationwide. Your insurance commission would be powerless to protect you. The gold standard in insurance protection for consumers has always been New York. If a company was licensed in NY it would be accepted in every state. The Flip side was Texas. If it met minimum standards in Texas chances were it was a consumer ripoff. Long story short with their insurance you still go bankrupt in two weeks.

[Yavin4]

10. In the long run, it will make ALL of our healthcare super expensive

Health care providers would have to recoup their losses from paying customers.

[TheFarseer]

9. It made some sense

When health insurance was mandatory and you had to pay a tax if you didn’t have it. Now it’s just a rip-off

[Yavin4]

11. Healthcare is unlike ANY other business.

Service providers have to provide the service in an emergency regardless if you can pay at the time. Just because you're hungry, a restaurant does not have to feed you regardless if you cannot pay.