Insurers Will Share Revenue Under U.S. Health Market Rules

[Tony_FLADEM]

Insurers with healthier, lower-cost patients would share revenue with rivals whose customers run up higher bills under U.S. rules to stabilize insurance markets within the 2010 health-care law.

Insurers such as UnitedHealth Group Inc. (UNH) would also qualify for $20 billion in subsidies from 2014 to 2016 when they take on the sickest patients, according to the regulations. The money would come from fees levied on the insurance industry.

Rules issued by the Obama administration today attempt to make good on the law’s goal of discouraging private health plans from cherry-picking patients while easing market disruptions when top changes in the medical system take effect in 2014.

[zalinda]

1. There is going to be A LOT of book cooking! n/t

[Abq_Sarah]

2. Great

The end result will be healthier people paying higher premiums to make up for the limits imposed on less healthy "customers". Same as today BUT at least more people will have access. And I'm not sure how this discourages plans from cherry-picking patients. I imagine there would be a lot of incentive now to write policies companies know will be very expensive if they can just stick out their hands and demand money in the name of "fairness".

We made a big damned mistake not going for single payer.