Who Benefits from Obamacare? Democrats, Republicans & the Corporations.
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They aren't going to be able to jack up prices like that. Even now, insurance companies don't really make money off the premiums themselves, but instead by investing the pool of money that they hold at any given time- much like how banks don't make money from deposits. They win because they get more customers because of this at government cost, which expands the pool of money.
Why wouldn't they be able to jack up their premiums? Who could stop them.
The comparison to a bank deposit isn't a good one. You will never get the money you spent on insurance back. They aren't in the business of opening accounts to hold money. They sell a product/service. Much like auto insurance.
I don't believe for one minuet that they don't make money on primiums, that is like saying ford doesn't make money on selling cars.
Competition for one. Supply and demand too. If you are trying to maximize profits, jacking up prices isn't always the best way to go. And considering the mandate holds no criminal penalty and only a financial one, it is easily a financial cost-benefit issue for consumers.
The aggregate base of customers actually does usually get the money back under many current insurance structures. The premiums reflect the risks and costs associated with those risks.
Well they don't. It is well known. You can look it up if you want to. Saying they don't make money on premiums is like saying banks don't make money on deposits. Both which are true in the literal sense- both types of firms do still make money through investments of course though.
The only way supply and demand works is with a limited supply or lemited demand. when demand is 100% by government law the law of supply and demand falls apart. What resorce does insurance need, what do they supply.
I can't make a withdraw from my insurance company, because I perchased a product. I didn't put it in an account. If I paid primiums for nine years and never got sick yhen switched to a new company could I take NY money with me? Like I could with a bank?
Its not an account it is a product, period that is why they fought it on a constitutional level.
I can't make a withdraw from my insurance company, because I perchased a product. I didn't put it in an account. If I paid primiums for nine years and never got sick yhen switched to a new company could I take NY money with me? Like I could with a bank?
Its not an account it is a product, period that is why they fought it on a constitutional level.
Supply is still variable here as people can just pay the fine instead of buying insurance.
No one is saying that. I said the model is set so AGGREGATE payouts equal intakes with risk premiums for the insurance company factored in in order to keep the company afloat. The profits come from investments.
Paying the fine is not the same as purchasing a product, that is a terrible arguement.
Pay outs are not the same as a with draw, if it was, why bother with the insurance company. Couldn't a bank do the same thing. Its robbing peter to pay Paul. but its not an account, its nothing like an account, a lone or any of those things. Its an insurance polocy, basically its security. You pay an imsursnce company to cover medical uncertainty. Its not an investment because it doesn't grow. Its a product, nothing more.
Pay outs are not the same as a with draw, if it was, why bother with the insurance company. Couldn't a bank do the same thing. Its robbing peter to pay Paul. but its not an account, its nothing like an account, a lone or any of those things. Its an insurance polocy, basically its security. You pay an imsursnce company to cover medical uncertainty. Its not an investment because it doesn't grow. Its a product, nothing more.
Go read what I said again, you misunderstood. I said the fine makes it so supply is variable.
An insurance company makes profit in the time it holds $ just like a bank does. That is the point. And it is fact. And a bank account is a product just like an insurance policy is.
A bank account is not a product, it is a service. It is security for your money, and that money is secured by organizations like fdic. Insurance is finantial support should something happen. I sold insurance. You purchase a policy. That is a "product" you prchase no product from a bank, a bank is accounts holding. you don't return anything when you withdraw, infact if you never touched the mony you get more back than your original deposit.
You give money to insurance companies, its gone, the only way you get it back is by injury or health issues. it is just in case, not a holding account. If that comparison was at all valid, I paid 140 dollars a month fro the age of 25-65, that tallies up to 67200, if I never used it, why can't I have that money back? If I put it into the bank I could, and of course 40 years of interest.
Some people never claim on their policy, that is money that goes to the people whoclaim400,000 dollars on their policy if they take capital and invest it, good for them, lots of people do that, companies too. But nothing could be invested without income from customers. It really is as basic as it gets. You gain money from customers, nowhere else, that is what business is
You give money to insurance companies, its gone, the only way you get it back is by injury or health issues. it is just in case, not a holding account. If that comparison was at all valid, I paid 140 dollars a month fro the age of 25-65, that tallies up to 67200, if I never used it, why can't I have that money back? If I put it into the bank I could, and of course 40 years of interest.
Some people never claim on their policy, that is money that goes to the people whoclaim400,000 dollars on their policy if they take capital and invest it, good for them, lots of people do that, companies too. But nothing could be invested without income from customers. It really is as basic as it gets. You gain money from customers, nowhere else, that is what business is
A service can be a product.
And again, and for the last time, many insurance companies if not the majority don't make money off of premiums because the premium amounts are driven by pool risk. In the AGGREGATE intakes and payouts even out after the risk premium (which is part of the pool, not profit).
And again, and for the last time, many insurance companies if not the majority don't make money off of premiums because the premium amounts are driven by pool risk. In the AGGREGATE intakes and payouts even out after the risk premium (which is part of the pool, not profit).
If nobody pays premiums where do they get money. their business depends on customers, nothing else. You are dead wrong again. But you are going to continue this nonsense until you realize you can't spin me, then you will give up.
You can pretend it is whatever you want it to be, but it depends on costumers, not whatever magic money nonsense you want it to be.
Disagree all you want, it just illistrates that you really don't understand the concept of business
Ignorance is bliss huh? Go read about insurance business plans. Premiums make up the pool. They aren't the source of profit. Just like bank deposits! Are you trying to tell me that since banks don't make money on deposits that they dont make money?
Investments are the bulk of profit, not underwriting. http://en.wikipedia.org/wiki/Underwriting_profit
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It has also been very elusive to most insurance companies. Many companies will eschew Underwriting profit in order to gain a greater market share."
The point is they don't make money up jacking up premiums which is what you were arguing! Of course they need premiums, but that was my whole point. This legislation helps them because they get to sell more policies so they expand the pool of money in their holdings and with that they increase the pool in the investment arm of the company with which they can make money. They don't actually make more directly off premiums though.
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