http://www.healthinsurancecolorado.net/blog1/2008/11/07/combining-public-and-private-health-insurance/ Research and discussion of the Colorado health insurance industry and the healthcare crisis in America. Fri, 19 Mar 2010 21:55:46 +0000 http://wordpress.org/?v=abc hourly 1 http://www.healthinsurancecolorado.net/blog1/2008/11/07/combining-public-and-private-health-insurance/comment-page-1/#comment-12699 Don Levit Sat, 08 Nov 2008 00:55:09 +0000 http://www.healthinsurancecolorado.net/blog1/?p=733#comment-12699 Louise: Medicare has another advantage over commercial insurers. The government does not need to maintain reserves for future claims. This is because the liabilities that Medicare assumes are only for the current fiscal year. As long as premiums exceed the outlays, Medicare remains in the black. This is because the future costs of Medicare (those past the current fiscal year) are not considered as liabilities. They are considered contingencies, for by law, Congress can end Medicare after the current fiscal year. In addition, the premiums for Medicare are used not only to pay medical expenses, but also to pay other expenses. No commercial insurer can match the leverage of the federal government. Don Levit Louise:
Medicare has another advantage over commercial insurers.
The government does not need to maintain reserves for future claims.
This is because the liabilities that Medicare assumes are only for the current fiscal year.
As long as premiums exceed the outlays, Medicare remains in the black.
This is because the future costs of Medicare (those past the current fiscal year) are not considered as liabilities.
They are considered contingencies, for by law, Congress can end Medicare after the current fiscal year.
In addition, the premiums for Medicare are used not only to pay medical expenses, but also to pay other expenses.
No commercial insurer can match the leverage of the federal government.
Don Levit

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