Fannie and Freddie Mac, a possible blue print for Health Care

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I have been thinking a long time about the Health Care issue. Specifically ways to provide health care to more people without having some type of universal government provided system.

Would something like a Freddie Mac organization which is essentially a private corporation backed and regulated by the US Goverment for the sole purpose of making mortages more liquid also work in health care. An insurance policy is basically an investment so if this invented organization were able to pool individual policies, thus spreading the risk, and then resale them in lots the result should be lower rates. Right?

Also what about something like community credit unions but for health care. By allowing individuals of a community to pool there risks this again should result in lower rates.

I know it wouldn't provide health care for everyone but it seems like it would provide it for more people while still be founded on open market principles.

[adios]

Interesting idea. A quick note is that the timing for this right now would probably be bad due to Freddie's and Fannie's accounting snafus. I'd also point out that there is a tremendous amount of mortgage money outside of Fannie and Freddie that is securiterized as well. All of these companys that pool mortgage money and issue bonds make use of derivatives to defer risks to attract bondholders over a wide range of risk tolerance levels. Not sure but I'm fairly certain that the type of risks involved with issuing insurance policies are not deferrable in the derivatives market. I definitely need to study this idea a little more though.

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It is certainly a differnt type of risk and honestly I am not sure how the securitization would work. Instead of a risk of default which is quantifiable there is instead a risk of high pay out in return for streaming payments. A large number of policies would certainly have to be combined in order for it to work (1000's maybe more)

I think maybe the credit union idea is better. The institution instead of purchasing individual policies (very expensive) would instead be able to purchase them in large numbers hopefully less expensive and pass those savings on to the members.

I also like the Health Savings accounts recently inacted.

[zaxx19]

Ill be the first right winger to admit the GOP laisez faire
attitude towards the problem will not do anything but make it worse.

I was listening to a speech by Gingrich on Cspan and he basically conceded that IF nothing is done in the next 20 years there NECESSARILY WILL BE nationalized/socialized healthcare in this country by 2030.

Some chilling stats-

2180$ on each domestically produced SUV goes towards healthcare costs of the employees and benificiaries, survivors and pensioners.
This may double in the next quarter century.
\

Something like 30% of 3rd year med students plan to work in a "cosmetic/dermatological" field.

[Dead]

Just read your convoluted, terribly written post.

Don't you ever call me stupid again.

[natedogg]

The terrible costs of medical coverage today is BECAUSE of govt intervention so far. Adding more govt involvement will only make things worse.

natedogg

[Dead]

Can you prove it?

[zaxx19]

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Don't you ever call me stupid again.

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Ok, you are dumb.

[Dead]

[ QUOTE ]
[ QUOTE ]
Don't you ever call me stupid again.

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Ok, you are dumb.

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I seem to have left a loophole for a large Jewish man to walk through.

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[ QUOTE ]
The terrible costs of medical coverage today is BECAUSE of govt intervention so far. Adding more govt involvement will only make things worse.

natedogg

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It's a fair point but my ideas wouldn't call for about as much government intervention as there is with banking institutions and financial markets. Basically either setting up a corporation similar to freddie mac or changing the laws to allow individuals or small businesses to pool risks.

Nate do you think something like this would work?