The inevitable math of healthcare

So boils paid penalty for #1,not having insurance, and #3, which only applied to those with high deductible insurance policies.
I think he is confused.

Billy, I was unemployed at one point and chose to go without insurance. The explains my tax for #1. While I have a zero deductible and premium plan now, while working for my previous employer I chose the high deductible plan as it allowed for a lower premium. I then had spinal fusion surgery, and the limits to my medical savings account cost me a substantial amount money...............taxed again.

#2 was quite simple. There used to be a plethora of over the counter stuff that you could pay with a medical savings account, but.........................a tax increase again.

Lie, lie, and lie. Of course there were additional lies, however only three of Obama's many lies cost me money.

Some argue that the 61 cent per pack of cigarettes was an Obamacare tax also. I smoke.

"A 156 percent increase in the federal excise tax on tobacco: On February 4, 2009, just sixteen days into his Administration, Obama signed into law a 156 percent increase in the federal excise tax on tobacco, a hike of 61 cents per pack. The median income of smokers is just over $36,000 per year."

I have a question about the inevitable mathematics of the Affordable Care Act. The 80/20 rule. Where 80% of health insurance premiums are required to go for patient care while things like Marketing and Admin and Profits are capped at 20%.

If a sly health insurance company wanted to increase their profits, wouldn't they just give a blind eye to healthcare COSTS? If patient care starts costing more, then they make more profits, right? Because 20% of $200 is more than 20% of $100. How is this not an incentive for them to increase the cost of healthcare rather than to lower it?

80% of the premium must go to health care. The 20% is of premiums, not of the actual cost of health care. If health care cost go up, its eats up the premiums, leaving less for administration, not more. Are you experiencing a brain fart or something?

I don't believe you. Cant make it any plainer. COBRA would have kicked in for you.

They base the premiums on their estimated costs. If their estimated costs go up, the premiums go up. If the premiums go up, their profits go up. Where is the incentive to lower costs?

The insurance companies dont determine cost of medical care. The healthcare providers do and the price is loosely based on supply/demand which is why urban premiums tend to be less expensive than rural ones.

The 80/20 rule stops insurance companies from jacking up rates especially in areas where competition is lacking.

Due to obamacare most counties no longer have competition.

Whenever I go to the Dr., my insurance company dictates how much the Dr. will get paid. My insurance company determines the cost of the healthcare. Dr. might bill me $400. Insurance pays them $42 and there is not further charge to me. I had some routine blood work done last month and due to a glitch, my insurance company denied the claim and the bill was $512. Insurance kicked in and paid $37 and that was that. Tell me again who determines healthcare costs?

There is none. Give the man a Kewpie doll.

Meanwhile, providers charge ridiculous prices because nobody cares since "their insurance pays for it". Things like this article points out:

https://www.rd.com/health/wellness/wildly-overinflated-hospital-costs/

One Tylenol pill: $15
The little cup the medicine comes in: $10
An oral Administration fee: $6.75

So to get 2 Tylenol for a headache costs $51.75.

My favorite though is "non-sterile gloves": $53 a pair. (The sterile ones are more expensive).

And these are but a few examples and you can find many more online. 15 years ago I had a knee problem and got an ace bandage from my doctor. When I got the bill I couldn't believe it was $22 and went to CVS where I could have gotten the same thing, (or very close to it), for 6 bucks.

Now add in drugs. The news of late has highlighted some cases where drug cost were raised such as the epi-pen, (which cost about $100 in 2009 and was raised to $600 last year, even though the active ingredient of epinephrine costs only a few dollars), Daraprim went from $13.50 to $750, and while you used to be able to get Albuterol inhalers for about $10 a few years ago good luck finding anything for under about $65, (but I can still get them shipped from overseas for $10). But as long as their prescriptions are payed for out of insurance, nobody complains.

I wrote it a few pages back and I'll write it again. As long as the focus is all or mostly on insurance there isn't going to be much in the way of change.