Mechanics

How can we possibly take on all the pre-existing conditions in the country when just those under Obamacare are so costly under the Republican State pools alternative?  After all, Dave’s Plan covers virtually everyone  including the far more numerous covered under employer plans.  Won’t this explode the number with pre-existing making the plan unaffordable? This would be the case if everyone now with employer-provided insurance suddenly lost it and had to apply individually, but there is no reason for this to be the case.  These plans for the most part consist of the broad universe of health that insurance companies need to offer affordable insurance. We know that because they’re doing it now. These insurance companies whether directly or as administrators of employers self-insured plans know and accept these groups now.  Given the chance to sign up plan members as a group would give them the healthy to sick ratio they have already have. These are people healthy enough to work regular jobs.  Further signing the group would save them large acquisition costs while contributing to the wide base the company needs for true experience.

It may be in the insurance companies interest to do group transfers to their individual policies, but why would the employers facilitate the move?  Management of entities now offering health insurance tends to be older than the overall group. Being older they would be more likely to have more health problems.  They wouldn’t want to now get insurance on their own.  Better to have our XYZ Company plan move in mass to our an insurance company’s individual plans. Self interest is a mighty motivator. In any case employers will have to facilitate the move from  company savings plans to individual accounts so this would go right along with those transfers. In any case, the prospects of a much lower corporate tax, makes employer-provided insurance less attractive. This at a time when more companies need a fluid labor force.

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