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Turns out short-term (ACA-non-compliant) health insurance plans are in fact scams, for sure.

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In the past I've defended "skinny" health plans in theory based on the relative cheapness of premiums.  Sure, the coverage is "skinnier" and it won't cover much, but that's because you're paying piddly in premiums, and they tell you the coverage limitations.


But how do we know if the apparently low premiums are in fact low enough that the "skinny plan" might actually an OK deal, assuming caveat emptor regarding coverage limitations?


Loss ratios.


The real indication about whether a short-term, ACA-non-compliant a.k.a. "skinny" health insurance plan is "junk" or not can be found not in complaints about what the plan admittedly doesn't cover, but by how much of the revenue the insurer spends on claims.


In the case of these plans, turns out it's $0.39.  One example (Cambia-BCBS) is as low as $0.09.  That's how we know these are "junk" plans.


So.  Whatever I may have said in the past in theoretical defense of ACA non-compliant short-term "skinny" health insurance plans, I stand corrected.  These are junk plans.


Short-term health plans pay out only 39% of premiums on care, report finds

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Marketed to low income people,

so the sick get sicker.

And somehow,

people with GOOD insurance,


don't want to realize that the health costs that the low income people default on,

are simply passed on to the bills of the patients who have good insurance.

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