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ObamaCare Clusterfuck: Escaping ObamaCare's health insurance with life insurance?

Eeew, wingers.* And the obvious agenda is to suck more "young invincibles" away from ObamaCare, thus making it less sound, actuarially. (And why in the name of sweet suffering Jeebus is a government concerned about actuarial soundness, as opposed to the health of its citizens?) All that said, this is an interesting idea:

But just because millions of Americans refuse to get ObamaCare-qualified coverage doesn’t mean they will be uninsured. There are policies available now that would work very well for the ObamaCare avoiders.

Some of these policies are built on a life insurance platform rather than health insurance — which, incidentally, means they are outside ObamaCare’s long arm of regulatory control.**

The customer buys a life insurance policy that pays up to $250,000 upon death, which I believe is the current maximum available for this kind of policy.

Along with life insurance coverage the policy includes what’s called a “critical illness” component. If the policyholder needs, say, surgery, the insurer writes the policyholder a check based on a schedule. Let’s say, for example, it’s $10,000.

The policyholder has $10,000 in hand to pay for the medical care — or, frankly, anything else since the money belongs to the insured — but the value of his life insurance benefit is reduced by the same amount, to $240,000. Thus the critical illness component simply accelerates the benefit payout.

One existing policy pays 100 percent for heart attack, stroke, life-threatening cancer, major organ transplant, kidney failure, Alzheimer’s and paralysis, among other medical conditions.

The policyholder could also be part of a provider network that provides a discounted rate for the care — one of the most important current benefits of having health insurance.

How much would such a policy cost? For one company, a 30-year-old male would pay $1,438 a year, and for a 50-year-old male it’s $3,234.

And remember, this isn’t just health coverage. In the event of a tragic accident or illness, whatever is left of the benefit goes to the estate upon death.

Frankly, I have no idea how to assess this idea (although gawd knows it seems simpler than ObamaCare). I wonder how it nets out, with ObamaCare penalties --- oh, I'm sorry --"shared responsibility payments")*** --- on top of the payments?

NOTE * Hi, Dick Armey! [waves]

NOTE ** This is the sort of thing wingers are smart about.

NOTE *** The "shared responsibility" language is so Orwellian. The only responsibility I should have is to pay taxes which, since health care should be a right, and single payer the delivery mechanism, would be the beginning and the end of my "responsibilities." But n-o-o-o-o-o-o!!!!!!

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katiebird's picture
Submitted by katiebird on

Makes me feel like a total idiot for paying the extortion prices I've been paying these last 5 years.

But, how in the world do we find out how this works in the real world? (A cancer diagnosis, a broken leg, Gall Bladder surgery, knee replacement.... )

katiebird's picture
Submitted by katiebird on

Because you get the cash-value of what remains from the policy after whatever bills it actually pays.

Not that I'm likely to do it. I'm very disinclined to do anything that makes life more of a lottery than it is.

Alexa's picture
Submitted by Alexa on

please post the links, so that I can check on this.

Sounds to me like this dude if either "BS'ing," or confused.

Some life insurance companies (not all sell this type of life policy) allow "terminally ill" patients--and it is medically "certified"--to borrow against their life insurance policies to pay off some of their end-of-life medical bills (hospice, etc.).

But usually (according to Mr. A) they must agree to continue the payment of premiums on the policy (or their family on their behalf).

Basically, the life insurance company BECOMES THE BENEFICIARY of your policy (instead of your heirs).

Like the old axiom says:

"If something sounds too good to be true--it probably is."

{Mr A points out that he's not been in this field for years and years. So, anything is possible.]

But it defies logic (to us) that a generally healthy individual (with no obligation to make life insurance policy payments) could demand that their insurance company allow them to borrow against their policy, in order to pay for a none life-saving surgery like a hip replacement surgery, for instance.

(Now, drawing on your "cash value" for a whole life policy may be another matter).

And if they did, you can bet that the premiums for any such policy would be "astronomical."

Therefore, it's hard to imagine that some new-fangled policy would be that appealing to the average Joe, much less the average "Young Invicible."

But, who knows? With the ACA--I guess anything is possible.

And this is definitely a topic worth watching!

Rainbow Girl's picture
Submitted by Rainbow Girl on

This is anti-Obama propaganda (the right wing variety) doing double duty as an infomercial for scammy insurance products being pushed by some entity or other.

Submitted by lambert on

... which I don't recommend.

Doesn't mean that the path to the product doesn't exist, or that the existence of said path doesn't have impact or policy implications.

It's unfortunate that there's no real critique of ObamaCare from what passes for the left, despite its cementing the insurance companies into the system. So one takes the ideas as one finds them.