Very Excellent Post on Health Insurance Recisions

Robert WaldmannTaunter explains the link between Monte Hall and Health Insurance. Brilliant.Via Paul Krugman via Yves Smith so I am sure you've read it already but if not click now click often.James Kwak at Baseline described the practice as rare, moving only 0.5% of the population. The faint light bulb above my head began to flicker: could that be true…that’s not rare â€" that is amazingly common.[snip]It have to be fairly clear that the people who do not file cover claims do not face rescission. The cover companies will happily deposit their checks. [snip] that top one percent, the folks responsible for additional than $35,000 of costs â€" sometimes far, far additional â€" well there, ladies and gentlemen, is where the money comes in. [snip]if a bank boss went to half of his uppermost net worth clients and said “sorry, you misspelled your address when you opened your account, I’m confiscating your balance,” he would be fortunate to get himself assigned to minimum security.
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