Should medical insurersí individual catastrophic accounts be federally re-insured?
(Similar to FDICs insurance of bank accounts).

I don't know why itís been many years since Iíve read or heard stories of a commercial insurer evading their responsibility to pay for some extremely expensive medical treatments?
Iím speaking of the proportionately small and numerically few individual patientsí accounts that within a 365 day duration generates amounts of claims sufficient to significantly skew the insurersí costs per patient.

Iím suggesting that within any 365 day duration, if the healthcare of a patient covered by a qualified medical insurance policyís amount of costs to the patient and the insurer can be designated as a financially catastrophic account, it be reinsured.

Financially catastrophic accountsí insurers should then be subsidized from the federal budget and the subsidy would be administered by the Federal Center of Medical Services, (i.e. CMS). The CMS now administers other insurers such as Medicare. (Medicare does not deliver healthcare, it is a healthcare insurer).

From the day that an account was designated as catastrophic, the federal CMS should reinsure the insurer for the next 365 days. The proportion of that reinsurance should be progressively increased as the patientís additional healthcare costs increasingly accumulate.
When an accountís portion of reinsurance rate for additional expenditures exceeds 50%, the patient should be given the option of qualifying for Medicare, (rather than waiting for their 65th birthday).

Similar to FDIC for qualifying banks, this reinsurance would be offered to qualifying healthcare insurers, (including Medicare, Medicaid, Veteran Administration and SCHIPs insurers) that are willing to pay the reinsurance fee per patient. The U.S. Congress will set the reinsurance fee per patient with the CBOís advice.

The entire administrative costs of reinsurance should be covered by the fees to the insurers, (who are the direct beneficiaries of this reinsurance). Due to the reduced cost to the insurers, the reduction should also be indirectly reflected within the prices of every healthcare insurance policy. The costs for these statistically rare medical catastrophes would be spread among all USA taxpayers.

Respectfully, Supposn