Jesse Powell on Twitter: "@towneslaw That’s like saying out of pocket costs, like money, for canned beans don’t apply anymore and the stores fully cover it." / Twitter

Can someone ELI5 how this works? When the state orders a private business to give its services away for free, does the state reimburse the business? Insurers can’t magically “waive” costs away any more than individuals can. What am I missing?

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Gavin Newsom

@GavinNewsom

Governor candidate, CA

· Mar 6, 2020

BREAKING: we have ordered health insurance companies to waive ALL out-of-pocket costs for preventive coronavirus testing. sfchronicle.com/business/netwo

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Jesse Powell

@jespow

That’s like saying out of pocket costs, like money, for canned beans don’t apply anymore and the stores fully cover it.

6:38 AM · Mar 6, 2020Twitter for iPhone

Replying to

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copays are an insurance construct that aid in preventing over utilization of a provider. i.e people are not going to spend $ to see a doctor over a paper cut. Waiving these fees will increase likelihood of people going to doctor which is what the state wants.

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PLH

@notpaulhobson

Mar 6, 2020

That said, somebody is paying for it and my guess would be through taxes.

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