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rogerashton

(3,920 posts)
Sat Mar 18, 2017, 09:46 AM Mar 2017

Why would average premiums to down? Numerical example:

For simplicity, think of a population of just three people. Before Trumpcare, A and B each pay 1000, and C pays 7000. Average premium = (1000+1000+7000)/3=9000/3=3000.
After Trumpcare, each person's premium doubles, but C cannot afford 14,000 and so exercises his freedom to be uninsured. A and B tighten their belts and pay 2000 each. Average premium = (2000+2000)/2=2000.
Average premiums have dropped by 1/3! Hallelujah, right? Of course, everybody is worse off. But that is the cost of freedom, right? After all, freedom isn't free.

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Why would average premiums to down? Numerical example: (Original Post) rogerashton Mar 2017 OP
Premiums will never go down... Wounded Bear Mar 2017 #1
They will allow them to sell junk policies again, so those might be cheaper than ones w coverage. bettyellen Mar 2017 #2
Both responses make good points. rogerashton Mar 2017 #3

Wounded Bear

(58,654 posts)
1. Premiums will never go down...
Sat Mar 18, 2017, 10:10 AM
Mar 2017

the best we can hope for is what Obamacare managed, which is to slow the growth in premiums.

rogerashton

(3,920 posts)
3. Both responses make good points.
Sat Mar 18, 2017, 05:41 PM
Mar 2017

But my point was that EVEN IF what the Pubs said was true, it would still be concealing the fact that everybody would be worse off -- and illustrating a problem with averages in a simple way.

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