Actually that came way before Obamacare, and regarding premium increase...it's insignificant.
Single men had to purchase plans with maternity benefits. Tailoring each plan to the needs of the individual should increase the number of insured and lower costs.
It keeps costs down in two ways:
All the "mandated-coverage premiums" are lessened because more people are paying into all of them them.
Using the "Keep it simple stupid" principle, one simple policy form (and including the final review) is way cheaper to process, than millions of types of policies. (cafeteria care).
I suppose both could be offered, but the cross-subsidized model is way less complicated in underwriting, and hence faster to issue. Counterbalanced by a lower policy fee....it a wash.
The subsequent and insignificant premium increase of 1 to 3 percent is peanuts, compared to the hundreds of percent of increase caused by throwing known AIDS and terminal cancer patients into the "young/healthy" standard risk pool.
No it didn't for those who were self-employed or worked for businesses that did not provide health insurance. And Obamacare mandated the purchase of insurance under penalty of an ever-increasing fine/tax. Obamacare was supposed to lower costs by $2,500 per family, but just the opposite has happened with higher premiums and deductibles, which reduce access to healthcare. You can't keep your doctor or hospital.
Using the "Keep it simple stupid" principle, one simple policy form (and including the final review) is way cheaper to process, than millions of types of policies. (cafeteria care).
Lots of insurance is "cafeteria style." Automobile and homeowner policies are just two examples. There are certain minimums required by the states and insurance companies, but you can buy insurance tailored to your individual needs. It is what patient centered healthcare is all about.
The subsequent and insignificant premium increase of 1 to 3 percent is peanuts, compared to the hundreds of percent of increase caused by throwing known AIDS and terminal cancer patients into the "young/healthy" standard risk pool.
You can establish separate risk pools for various groups, even with government subsidies. It would be cheaper than throwing them all into the same group. A small percentage of the public uses the lion's share of health costs.