In my last Monday blog I wrote about the Hennessey et al WSJ article commenting on their alleged unfairness towards young people by having them subsidize the older health care folks. I stated that first their facts were wrong and second that their logic was wrong. In a recent Seeking Alpha blog they state the objections even more clearly. The blog actually states:
"What's even more amusing is that contrary to what the article claims, this will not have a negative affect on insurance premiums and may lower them for some young people. The fact is that most health insurance today is "community rating" as it is purchased through an employer. Because there is only one price for the young and old in employer pools, younger people who buy insurance in the individual market where there is some adjustment for age should get lower rates."
One really wonders how three whiz kids of the Bush Administration could be so far from reality, or can one?
"What's even more amusing is that contrary to what the article claims, this will not have a negative affect on insurance premiums and may lower them for some young people. The fact is that most health insurance today is "community rating" as it is purchased through an employer. Because there is only one price for the young and old in employer pools, younger people who buy insurance in the individual market where there is some adjustment for age should get lower rates."
One really wonders how three whiz kids of the Bush Administration could be so far from reality, or can one?
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