Universal HealthcareBy NextBestFit
Phase 3: Waves 2 & 3: working-age adults · Step 3.3

Wind down the private health insurers

Years 1–5 · State insurance commissioners; NAIC; UHADiscuss this step

Insurers' UHP-duplicative business ends. They must process all claims for prior coverage (run-off), protect policyholders, and convert or close in an orderly way. The 'Net cost of insurance' line falls from $306.0B to $26.4B.

Legal vehicle
Universal Health Act, Title VIII; state insurance receivership law; IRS rules for nonprofit conversions.
Who does it
State insurance commissioners; NAIC; UHA
When
Years 1–5
Recurring, per year
−$279.6B

Insurers' economic losses: about $279.6B a year in overhead and profit that no longer exists, of which about $42.0B is profit. These are private losses, not a government cost. No compensation is paid.

In this step

Tasks
6 tasks
Costs & calculations
8 cost items, each with its calculation
Trade-offs
2 pros · 2 cons · 2 trade-offs
Risks
1 risks with mitigations
What changes in the system
4 existing laws, programs, or institutions changed
Other countries
4 comparisons

Cost items

Steps that depend on this one

None.

Sources: NAIC (2024)