http://floridahealthinsuranceweb.com/blog/?p=160#comment-84

Aug 19, 2008

  1. mariemerganser
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    mariemerganser Super Genius

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    Did you know what change Florida made to its law in 1992? Makes you wonder why this happened? Wouldn't you like to help the unhealthy consumers as well?

    Click To Check It Out:

    Subsidized Health Insurance bypasses Florida
     
    Last edited: Aug 19, 2008
  2. mariemerganser
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    mariemerganser Super Genius

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    I think we should get into legistlation the high risk pool. It works very well in some of the biggest states, i.e. California.
     
  3. somarco
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    somarco GA Medicare Expert

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    Paul knows more about this than I do. I used to do a fair amount of business in FL and remember when they started their risk pool.

    Basically the DOI set the rates and benefits funded partially with premium taxes and participant contributions. The basic problem was, if the loss fund came up short the state would assess all carriers on a pro-rata basis for the losses.

    Several carriers threatened to pull out of the state and some actually did.

    As I recall, the fund was a money loser and had to be closed to new participants. Florida has made some attempts in the interim to come up with alternatives. The most recent one is Cover Florida which is a watered down (essentially mini-med type plan).

    Risk pools are not as easy to establish and manage as some would think. Essentially you have the challenge of providing benefits for folks who cannot qualify medically and keeping the premium "affordable".

    These two are mutually exclusive unless there is some kind of major subsidy from tax revenues.
     
    somarco, Aug 19, 2008
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  4. Crabcake Johnny
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    Crabcake Johnny Guru

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  5. djs
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    djs Super Moderator Moderator

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    Huh? Have you ever read the California high risk plan? It starts with a cap of I think $75K in benefits per year ($750K lifetime).... for high risk individuals????

    Also, it is EXTREMELY expensive, and has a waiting list to enroll. California is probably not the best high risk plan to model.
     
    djs, Aug 19, 2008
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  6. moonlightandmargaritas
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    moonlightandmargaritas Guru

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    Most health insurance experts are calling the "Cover Florida" plan D-O-A, and predict it won't even start in January '09 as planned.

    Just more pure pandering and mumbo jumbo from our elected political hacks, namely Gov. Charlie Crist.

    The carriers won't (can't?) play. As I commented, not enough premium to justify the risk.

    At the other end of the spectrum, activists are saying that the "poor" can't afford $150 a month premium...
     
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