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Originally Posted by the urban politician
^ Ugh, so damn confusing. Why does Government do this to every damn industry?
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If industries were better at managing their negative externalities and policing their bad actors the government wouldn't have a role to perform. Equifax is a prime example of the perils of letting private actors perform critical functions without oversight.
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They already fucked up healthcare with this byzantine nonsense...
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Coming from someone whose family has worked in healthcare and insurance for three generations now, healthcare was already fucked up. The worst that PPACA did was actually force the vultures that offered policies on the private market to provide policies that actually covered something. Prior to PPACA private policies were garbage (for example 93% of policies didn't provide any maternity coverage at any price, except in the handful of states that required it).
Insurance needs oversight. Case in point is AIG. Prior to being bailed out AIG approached the NY DFS (then DOI) and asked for permission to exchange the currency and CD's in their statutory reserves for life and health policies with the equivalent value of Mortgage Backed Securities (this was just as the crash was starting but before the contagion was traced to MBS's). Had there been no government oversight (that "byzantine nonsense" that lays out how insurance companies must maintain reserves, the assets their allowed to use, etc) then once those securities proved to be worthless there'd be no cash to pay out life or health claims to policyholders.
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What they don't understand is that just navigating the increased complexity increases costs.
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My corporate practice revolves around making sure my clients comply with the rules imposed by their home state. I have to track regulations in fifty states. The first time you go through a regulation can be a pain but by the 5th, 10th, 20th time it should be a breeze. This isn't that hard and the added cost, once the lawyer who is no doubt working on this already has seen this a few times, will be de minimis.