Question by Brace 4 Impact: What is a “Health Insurance Exchange” as mentioned in the proposed national healcare bill?
Best answer:
Answer by mbrcatz
It’s a make believe thing, thought up by people who don’t know how insurance works, and don’t know how EXCHANGES work.
See, they’ve heard of “reciprocal exchange” that has been made wildly popular with medical malpractice coverage, and has drastically brought down costs for many doctors, for med mal policies.
They think that since insurance companies make “huge” profits (5%, not so big in my mind!), that they MUST be overcharging for insurance (they actually don’t KNOW how insurance companies make money – by investing their reserves).
BUT, theoretically, a health insurance exchange, is where 100 people all pay 1/100 of the total covered medical bills of all the people. Since according to Consumer Reports, medical spending was over $ 7,000 per person three years ago, in order to break even, each PERSON would need to pay in over $ 7,000. For a family of five, that’s, wow . . . $ 35,000.
Not much of a “deal”, when you look at the idea closely.
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