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Originally Posted by afc wimbledon
Actually the only thing that reduces insurance costs are a wider pool of insurers. The more people you have in an insurance policy the cheaper it gets.
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And Trump can make it more difficult for insurance companies and more difficult for the ACA. Already has in fact, with the relaxing of enforcement of the individual mandate.
Less people paying for insurance = more expensive insurance.
Competition reducing prices is a nice idea, and works for industries where things are sold for many times the cost to make.
But the ACA mandates that insurance companies must spend most of what they collect in premiums on actual medical care! Health insurance profit margins are small (
industry average of 3.3%), so it's not like companies can just dig into their profits to be more competitive, or cut a bunch of administrative fat, at least not in a way big enough to not do a big increase when costs demand it.
(Who wants to bet that the failed bill would have gotten rid of the requirement to spend most of the premiums on health care?)
That's the thing, one can complain about a 49% increase, but why is the ACA the cause? The insurance companies are just charging the cost of care. What's the flaw in the ACA that's causing that? Seems to me it's the amount charged by hospitals and drug companies and all the rest.