Thread

1. janalsncm · 1789946252 · focus · HN ↗

   > employers expect health care plan costs to rise by an average of 11 percent per worker in 2027, unless benefits are cut

   I am sure most workers would prefer to get that extra 11% as a cash raise, but because healthcare costs are out of control the same care costs 11% more.

   Certainly some companies will throw up their arms and hire someone overseas instead.

   1. Avicebron · 1789946974 · focus · HN ↗

      Look up "Medical Loss Ratio" from the ACA if you want to find out where the perverse incentives for health care pricing comes from..

      1. smallmancontrov · 1789947566 · focus · HN ↗

         The cap is generous. If an insurance company is hitting it, competition is failing to keep them in check and lifting the cap would just let them gouge deeper. Of course, that doesn't keep them from constantly yapping this talking point, as if it wasn't that way before, as if we don't have evidence that it wouldn't work. "Just lift our profit cap" is self-serving baloney.

         1. Avicebron · 1789949685 · focus · HN ↗

            That's not the issue, it's because an insurer's absolute profit only grows if the premium base grows. This removes any reason to compete on reduced costs and an incentive to have the costs go up.

            1. rileymat2 · 1789962409 · focus · HN ↗

               Except you can grow the premium base by adding customers as well, as you are featured in a direct price comparison on the ACA website. Higher premiums mean less customers, unless you are offering more services that they find valuable.

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