When Death Spirals Occur

Death spirals occur when younger, healthier members abandon private health insurers and leave behind costly, chronic, older members. The healthy jump ship exponentially over time and that’s happening in Australia today. It’s a cautionary tale for BUCAH — a worst nightmare for their CSuite.

Not sure we have all the signs below but enough of them to pay attention. They too have a dual system. Federal is outgrowing private. And the young there are functionally uninsured with deductibles they simply can’t afford.

2019 will be remembered as a tipping point:

◾️Over half don’t have liquidity equal to their deductibles So no ladder to the treehouse of care. Forget homeownership. The Dream. The Promise. Dead.
◾️Health costs (48%)almost equal the rest of the federal budget.

Addressing the National Press Club on Wednesday, Duckett succinctly summarized his findings: “When we looked at the private health insurance industry, we found an industry ◾️strangled by red tape, ◾️riddled with perverse incentives, ◾️suffering learned helplessness, ◾️turning to government to fix all its problems, and labeled by the regulator as ◾️complacent.”