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From: tan@ihlpg.UUCP (Bill Tanenbaum)
Newsgroups: net.motss,net.med
Subject: Re: Politics of AIDS, of Foster Care
Message-ID: <1290@ihlpg.UUCP>
Date: Sat, 21-Sep-85 22:22:30 EDT
Article-I.D.: ihlpg.1290
Posted: Sat Sep 21 22:22:30 1985
Date-Received: Sun, 22-Sep-85 07:00:18 EDT
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Organization: AT&T Bell Laboratories
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Xref: watmath net.motss:2085 net.med:2433

> [E. Michael Smith]
> The problem:  Insurance is a form of socialism.  The purpose is to
> spread the costs generated by one individual over the whole group.
> ANY attempt to select out ANY higher risk subgroup is in conflict
> with the basic purpose of insurance.  The inevitable result is a
> reduction in the cost sharing and a lessening of the 'insurance'.
> (Yes, I know there are differential rates based on various
> tables, charts, etc.  The conflict still remains.)
---------
Wrong.  You are correct only if the higher risk subgroup is either
denied coverage completely or assigned to a separate insurance pool.
Differential rates (based on risk factors) within the same insurance
pool in no way lessens the effects of cost sharing.  An insurance
company with a million customers could use so many risk factors
that no two customers pay the same rate.  Please explain to me
how this adversely affects cost sharing.
Of course, if the rates are so exorbitant that almost no one in the high
risk group will buy insurance, that is equivalent to denying coverage.
-- 
Bill Tanenbaum - AT&T Bell Labs - Naperville IL  ihnp4!ihlpg!tan


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