Will they be relying solely on member premiums or will they take that money and invest it in companies that have profits so as to expand the available funds?
If they want premium based coverage they should be endorsing medical savings accounts, but conservatives like those so that idea is off the table.
I s'pose they could forsake profit-based investments and limit accessibilitys but this DUmmie is talking about dedicating its own money to this idea instead of its current plan, so we have to assume everyone is allowed in.
If they do go investment route they have to find someone that will work as an investment broker on a very limited salary. We are left to wonder what that person's fiduciary liabilities would look like. I would imagine they would have to be close to nil as I don't see anyone--especially a liberal--taking all risk with no reward.
Nice analysis, Mr. Bunny, but you missed something that, to me at least, is an even more fundamental flaw in this idea.
The most basic function of an insurance company is to spread risk. Those who purchase a policy are paying for the assurance that, if they are to suffer a catastrophic loss, their risk will be spread amongst all policyholders - while accepting that they will pay for some small portion of the catastrophic loss of other policyholders as well.
Often this works in large part because those who are at high risk for catastrophic loss are forced to pay a correspondingly high premium, or are not offerred the opportunity to purchase a policy at all.
In the DUmmy pipedream not-for-profit health insurance company, anyone who would consider joining would be, almost by definition, a high risk for catastrophic loss, either due to age, pre-existing condition which blocks them from other insurance plans, or simply poverty (poor people are sicker, oftener).
Without a significantly larger population of low-risk policyholders to spread that high risk around to - which such a plan could assurredly never attract - such an insurance company could not possibly be successful.
It might work as some other sort of health services setup, but not ever as insurance.
