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Our nation’s major divisions are wealth and health inequality. Protracting both divisions are voters who want more benefits or lower taxes. I offer actuarially based solutions to both inequalities.

President Biden has promised to govern using science and financial services are based upon actuarial science. By examining each divisions’ history and applying actuarial science to them, I will demonstrate an integrated solution exists. Actuarial science demonstrates how my public servant, Mr. Biden, can build from the bottom up and simultaneously increase our middle class.

Healthcare

In the early 1960s, Assistant Secretary of HEW Daniel Moynihan published Maternal and Child Health Care, which stated that if you take care of the children and mothers, the children will be healthy for almost 40 years. While insurers found this finding of actuarial winners a way to maximize profits, insurance regulators saw a potential for coverage-abuse denials and wanted to codify coverage within their states.

New York State met with insurers and they negotiated a simple, actuarially sound, group coverage Insurance law based upon the size of the group. The most pertinent result was if the group exceed 500 or more (including children), everyone had to receive coverage regardless of pre-existing conditions. This law worked for New York City, which – at the time – was the most diverse place in the nation. Further, while 500 was an actuarially sound number, the relatively small group size raised the possibility that a few outliers could make a group unprofitable. Therefore, once the group size reached 500, insurers had an incentive to make the group size as large as possible to minimize their risk. Since the standard was negotiated with insurers, they could profit.