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off-topic: reforming healthcare with a different approach

Here's an interesting thought on healthcare reform in light of the upcoming election - make the insurance actuarial business a public institution. Publish and mandate the actuarial tables used by insurance companies - that way all insurance companies must compete on the same basis. No more of this “ignore the man behind the curtain“ business. Whether you're buying insurance for one person or a group of people, all actuarial rates are the same. Any categorical divisions (smokers, skydivers, pre-existing conditions) must be approved and supported outside of the insurance industry.

back to Nant...

Published Nov 01 2004, 01:45 PM by shebert

Comments

Darrell said:

That would never fly. My current client is a rather large health insurance company, and they firmly believe their actuarial analysis is one of their key differentiators. It's hard to argue, since they are one of the most profitable companies as well.

I don't know if any company that makes money off of risk would be willing to commoditize the statistical function. Food for thought, though. :)

# November 1, 2004 9:43 AM

Steve said:

I know the insurance companies wouldn't like it - their actuarials allow them to maintain their unbelievable profit margins. Insurance companies would fight this tooth and nail.

However, legally force the insurance industry to base prices off common tables and you make the pricing truely market-based. And I'll bet the insurance industry would accept this over a national health care plan.

# November 1, 2004 10:28 AM

-e said:

Only problem - who judges the judges? Its a nice idea, but I doubt it would work out the way you predict. Politicians find a way to exploit everything.

"In theory, communism works" - Homer Simpson

# November 2, 2004 3:09 AM

Steve said:

Good point. I forgot to mention that I want that job... I'll be impartial, I promise...

But I'd rather have beureaucrats controlling the actuarial tables than controlling the who, what, where, when and how of me getting proper healthcare.

I just think it's a matter of time before we have some kind government-run "insurance for everyone" boondoggle.

Or in the words of Dark Helmet - "Evil will always prevail because good is dumb."

# November 2, 2004 3:28 AM

-e said:

Hadn't thought of what your system would prevent, only how it was worse than ideal. I generally distrust any scheme that puts more power in the government's hands.

However, your idea is definitely better than the alternative of gub'ment run insurance. Let's mention it to a trial lawyer, and if we don't need buckets to catch all the saliva, then it just might work...

# November 2, 2004 4:39 AM

SBC said:

I have worked with Actuaries in Insurance companies for several years - I can emphatically state that this idea will not work. The number one reason being that each state (that's 50 of them) have their own set of regulations. Having 50 'Actuarial Boards' will be tremendously costly.

# January 20, 2005 3:53 AM

Steve Hebert said:

As the system exists today, it is unworkable. I don't disagree with that point at all. My idea is an alternative to federally provided national healthcare. With federally provided national healthcare (like the Canadians have), the states lose their influence over the rules and regulations. This plan would also strip the states of their power, but it would leave the insurance industry intact - competing on a level playing field and eliminate their ability to play the constant shell game they currently play with actuarials.

I think the likelihood of national healthcare has decreased with the last election (breathing a sigh of relief). But if the political situation changes where the majority is screaming for their free healthcare, it would be good to have an alternate plan that doesn't destroy the availability of good healthcare available to everyone.

# January 20, 2005 4:50 AM