Josephus I said:
So, is there only one insurance company in Eutopia? The state-owned Omnicare? Is car insurance, house insurance, etc...all be under Omnicare?
That's the idea, yes. It may be better to think of it in terms of being a government agency rather than a corporation. This is because doing so highlights the facts that 1) Omnicare receives most (or perhaps "all") of its funding from the federal budget (27 billion as per the Term IX budget projections, which is nearly 10% of the 321 billion projected expenditure -- note this doesn't include medical, dental, optical, etc. which would presumably be Medicure), which suggests that Eutopian citizens pay either no premium, or minimal premiums based on how frequently they make claims (since they're already underwriting Omnicare indirectly, through taxes); and 2) Omnicare, unlike a traditional corporation, has no stockholders and is not concerned with making a profit.
Josephus I said:
And if that's the case, how does it go bankrupt? Insurance is a billion-dollar a year industry. Even if we have a shortage in medical pay outs....the profits from home and car insurance should cover up.
Again, being government funded, with minimal (or no) direct contribution by those who use its services, means Omnicare goes bankrupt when the amount of money it receives from the budget isn't adequate to cover its expenses.
Josephus I said:
Best I can see is the trouble with Omnicare spreads over many years.
The hurricane caused many payouts, and the failure of the governments to raise premiums over the years.
Possibly true. As per
the NEWSLINK, though, the most immediate cause of the crisis is the ECB bombing, and associated payouts. It is certainly possible that Omnicare was already running at a deficit before this incident, the necessary conclusion of which will be that the money authorized by OERA will eventually be spent, and it will devolve to some later administration to either increase Omnicare's funding or put into place a policy that involves premiums.
Of course, if the MESA wants to know whether, and if so when, all this might or is going to happen, he'd probably better order an audit of Omnicare.
