Skip to comments.For Obamacare to Work, Everyone Must Be In
Posted on 08/03/2013 1:43:23 PM PDT by Jim Robinson
TWO beliefs continue to shape debate on Obamacare. First, pre-existing medical conditions shouldnt prevent people from obtaining affordable health insurance. And second, people who dont want health insurance shouldnt be forced by the government to purchase it.
These may seem to be reasonable positions. But they are incompatible. Thats been shown by historical events, and its now being strikingly confirmed by recent experience in the emerging Obamacare insurance exchanges.
The crux of the matter is what economists call the adverse-selection problem. Uninsured people with pre-existing conditions often face tens or even hundreds of thousands of dollars in out-of-pocket medical costs annually. If insurers charged everyone the same rate, buying coverage would be far more attractive financially for people with chronic illnesses than for healthy people. And as healthy policyholders began dropping out of the insured pool, it would become increasingly composed of sick people, forcing insurers to raise their rates.
But higher rates make insurance even less attractive for healthy people, causing even more of them to drop out. Before long, coverage would become too expensive for almost everyone.
The adverse-selection problem explains why almost no countries leave health care provision to unregulated private insurance markets. It also predicts that requiring private insurance companies to charge the same rates to everyone will make it prohibitively expensive for most people to buy individual health insurance.
(Excerpt) Read more at nytimes.com ...
The current critique from the Left of America's health care system is that "only" the wealthy get the highest quality care, which is demonstrably untrue but that never stopped a Leftist from shouting it anyway. The system they're proposing to address this "economic injustice" will cost everyone more, lower the quality of care overall, place a great deal of power in the hands of those who ration it, and make the very highest quality of care available only to privileged classes, which tend to be - well, what do you know? - the wealthy. And loyal party members.
It's socialism when you can opt out, Communism when it's mandatory. And this commentator wants it to be mandatory.
They just do not want to give the free market a chance. I remember back in the 80s car insurance was insane. One accident and you could be paying $5000 a year which was a massive amount of money back then. Now because of the free market they give you freakin’ discounts if you have an accident! “Oh we are raising your rates” oh well then I’ll go Geico or Progressive or this or that. Same with phones, I remember getting massive bills for landlines now it’s $40 a month unlimited calls. But health insurance? Noooo, lets keep that under the thumb of the government, lets keep allowing OGYNs to pay $300k a year in litigation insurance because some crackhead ho gave birth to a kid with flippers and some Obama voting jury awarded her $40million bucks.
Exactly. The real reform of health care industry won’t happen despite all the many ideas that have been proposed for the past 20-30 years, because it would hit the pockets of... lawyers, and who writes our laws and reforms? D’uh!
Obamacare will never collapse of its own weight, and must be specifically abolished from the books to rid ourselves of it. Anything less will result in an intergenerational usurpation of governmental power that will last generations, and may never be fully rectified, like many failed policies before it. Furthermore, the government is used to spending money that doesn’t exist, so we’d be deluding ourselves to think that “budgetary problems” will prevent the current crop of stalinists from instituting their wet dream.
I have a feeling the Union bosses got the exemptions, not the people they “represent.”
“forced by the government”
This is the key to everything the left promotes ‘for the public good’. The only thing people are willing to embrace without the use of force is freedom, because the very definition of freedom is the absence of force or compulsion. This is another of those simple, black and white truths that exasperates the left, to whom everything is convoluted and complex, and ultimately subjective.
LOL. I can’t believe I typed “ text massages,” but I did!
That’ll get the job done!!!!
Well, that’s what the Soviets said to.
Not to fear, there will be subsidies for many people. Oh, you still will have to write a check for the full monthly insurance premium. But the government will catch you next time you file a tax return with a tax credit. So it’s dog food 11 months of the year.
The millennials will so not go for this. I guess they could just reduce deductions from their checks which could cause penalties and severely reduce tax revenue.
So whats the problem with paying 20 grand a year for the third rate plan?
hmmm. So, I pay 20 grand a year to be covered, THEN MORE co pays and deductables and I use the insurance?
Whats not to like?
Problem is, the kids are too ignorant and indoctrinated to know that the government is totally inept at running anything.
Just another attempt for the ‘haves’ to pay for the ‘have not’s.
Coverage for people with dire existing conditions isn’t insurance, it’s just a way to pay for their treatment. It may be what the country wants to do, but it is not insuring against potential loss if the probability of loss is 100%. It is just bearing the cost.
There is already a shortage of physicians in the US, and this is a result of decisions that were made regarding the supply of physicians 20 years ago. To undo it would take another 20 years. That's if they started tomorrow, and they haven't yet discovered that the supply of health care isn't elastic. Obamacare is destined to fail.
Following the "Law of Unintended Consequences", once Obamacare is fully implemented, there should be fewer people covered by health insurance and at a higher cost than was the case before.
Should be interesting to see all the twenty and thirty something’s Obama worshipers when their mandatory premiums double.