Unintended Consequence of the Affordable Care Act.

[Bibliofagus]

They will learn to bother when they find out their competitors who do actively prevent fraud can offer a better deal than they can and all their customers start walking away to get that better deal.

Markets are a bitch like that.

My point is that before this government intervention every dollar of fraud and waste saved by the insurance company translated into an extra dollar of profit(if we ignore the cost of looking for fraud and waste for simplicity sake). After this government intervention every dollar of fraud and waste translates at best into only 20 cents of additional profit. The profit incentive to look for fraud and waste diminishes quite a bit.

Its very true that the market force you speak of didn't go away because of this intervention, but it wasn't the only market force in play. Insurance companies may still have some incentive to look for fraud and waste, but those incentives are much weaker now then before this government intervention.

You appear to underestimate consumers and overestimate investors. Which is funny, because the customer is always more often right than wrong in an economic context.

The thing is: the company that can suplly the best benefits at lowest costs will win.

Fraud is not profitable for investors, and its not profitable for consumers. Investers might react quicker, but the consumer decides in the end.

[Heywood]

My point is that before this government intervention every dollar of fraud and waste saved by the insurance company translated into an extra dollar of profit(if we ignore the cost of looking for fraud and waste for simplicity sake). After this government intervention every dollar of fraud and waste translates at best into only 20 cents of additional profit. The profit incentive to look for fraud and waste diminishes quite a bit.

Its very true that the market force you speak of didn't go away because of this intervention, but it wasn't the only market force in play. Insurance companies may still have some incentive to look for fraud and waste, but those incentives are much weaker now then before this government intervention.

You appear to underestimate consumers and overestimate investors. Which is funny, because the customer is always more often right than wrong in an economic context.

The thing is: the company that can suplly the best benefits at lowest costs will win.

Fraud is not profitable for investors, and its not profitable for consumers. Investers might react quicker, but the consumer decides in the end.

The consumer wants his/her claims paid promptly. Providing the best benefit to the consumer may now be simply auto paying claims without much scrutiny because the profit reward for stopping fraud has been neutered.

These are complicated situations with lots of little incentives and disincentives at play. Nobody really knows the end results until some time passes and we see how it plays out. I think it a little ludicrous to believe the incentives for rooting out fraud haven't changed at all with the enactment of this law. I don't see any reason why the incentive for rooting out fraud have increased with the enactment of the law(you certainly haven't given any) and only see reasons why the incentive would decrease. I suspect fraud and waste will increase with this government intervention into the market. I hope I am wrong....but I don't think I am.

[Mudhammam]

Thanks to the ACA, I'm currently without insurance. Before the law went into effect, I had a crap plan that allowed me one free doctor's visit and one free dental check up per year, which was alright considering my age and health. Now I have neither, and if I sign up through the marketplace, my monthly rate is not cheaper AND I get to pay for every visit until my $6,000 deductible is reached.

In short, fuck the ACA.

[vorlon13]

Another unintended consequence is Pickup_shonuff type experiences and loss of votes towards re-election.


Ooops.

[Heywood]

Thanks to the ACA, I'm currently without insurance. Before the law went into effect, I had a crap plan that allowed me one free doctor's visit and one free dental check up per year, which was alright considering my age and health. Now I have neither, and if I sign up through the marketplace, my monthly rate is not cheaper AND I get to pay for every visit until my $6,000 deductible is reached.

In short, fuck the ACA.

The ACA apologists will tell you that your plan should have been cancelled because it was crap. They take the position that they know what insurance products are better for you then you do.

[Mudhammam]

The ACA apologists will tell you that your plan should have been cancelled because it was crap. They take the position that they know what insurance products are better for you then you do.

It was definitely crap. But it was actually cheaper than what the "Affordable" Care Act offers.

[vorlon13]

Indeed.

Even at this very moment he might have an ectopic pregnancy or cervical cancer.



(responding to Heywood)

[Mudhammam]

If I were to make less than $16,000 a year, I could get free government healthcare. But 1) who the fuck can live on 16k per year, and 2) how is it that everyone who makes more than that but less than 30k per year is supposed to pay these outrageous deductibles ON TOP of their monthly rate?

[Heywood]

If I were to make less than $16,000 a year, I could get free government healthcare. But 1) who the fuck can live on 16k per year, and 2) how is it that everyone who makes more than that but less than 30k per year is supposed to pay these outrageous deductibles ON TOP of their monthly rate?

After you factoring the individual mandate.....your probably going to be worse off.

[vorlon13]

But he gets a FREE pap smear !!!!!!