Tag: Risk

“Risky Business” in Climate Change Policy »

Alicia Mundy writes in the Wall Street Journal of June 24, 2014, that a coalition of environmentalists and at least some of the many corporate cronies of the federal government are pressing a proposal to require private business entities to account for and to report to shareholders the risks to which they are exposed...
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Obamacare Motivates Insurers to Shun the Sickest Patients »

A patient with HIV/AIDS can expect to pay over $1,000 out of pocket per month for medicines if he or she buys a policy on the Obamacare health-insurance exchange in Florida. “Affordable”? Surely not. This perceived injustice has caused legal activists to file a lawsuit alleging discrimination against four insurers that offer plans in...
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What Are the Financial Risks of Being Uninsured? »

Previously, Chris Conover showed that the medical risk of being uninsured is small: ...[T]he evidence that having health insurance will reduce mortality risk by any significant amount is pretty thin...even if we assume that having coverage reduces the chance of early death by 22 percent, this is comparable to a half dozen other risks...
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Obamacare’s Risk Corridor “Bailout” Just Got Bigger—Much Bigger »

Last Friday, the Obama administration quietly released 280 pages of rules that, among other things, increases Obamacare’s risk corridors (a.k.a. insurers’ bailout): We propose to implement an adjustment to the risk corridors formula..... Such an adjustment could increase a QHP issuer’s risk corridors ratio if administrative expenses are unexpectedly high or claims costs are...
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FDA Continues to Impede Medical Device Innovation »

In the Wall Street Journal this week, Dr. Scott Gottlieb discussed (gated, by subscription only) a worrying trend in the Food and Drug Administration’s regulation of medical devices. Increasingly, the FDA is demanding that device makers conduct trials of new devices by randomly assigning patients to the new device . . . or to...
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FDA Regulations Kill »

Paul Howard and Yevgeniy Feyman in Health Affairs: Meningitis is a terrible disease that can kill its victims in a single day. About 4,100 new cases are diagnosed annually in the U.S., with a mortality rate of more than 10 percent. Even with treatment, survivors are often left with serious side effects that can...
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What Republicans and Democrats Don’t Understand About the Insurance Company “Bailout” »

Last week I testified before the House Oversight committee on the “risk corridors” in the (ObamaCare) exchanges. Republicans claim that this is a device to bail out the insurance companies. Democrats, in the unusual position of defending the insurance companies, actually claimed that the government was going to make a “profit” because of it....
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Will the Federal Government Turn a Profit on Risk Corridors? That Can Be Stopped. »

I have written twice about the “risk corridors” in Obamacare’s health-insurance exchanges. The first post described how risk corridors will work in the exchanges. Risk corridors exist for three years and are designed to partially immunize insurers from losing money in the exchanges. Recently, the risk corridors have been described as a “bailout,” especially...
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Is There an Argument—Any Argument—for Community Rating? »

I’ve never seen an intelligible argument for community rating. I think I know why. I’m afraid there isn’t any. Don’t believe me? I’ll tell you what I’ll do. I let you pick any recognized ethical system in the entire history of Western philosophy. (Only Western? Yeah, we’re not cultural relativists here.) Altruism, Egoism, Nietzschean...
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Will Republicans Repeal Obamacare’s Risk Corridors? »

This blog’s readers are better informed than most about the (somewhat complicated) question of how health insurers will be compensated for bearing risk in Obamacare’s health insurance exchanges. A previous entry explained the basics of two of the three programs that protect health insurers from losing too much money on Obamacare’s exchanges. These are...
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