ObamaCare: Death Spiral of Failure, It Is a New Welfare | TigerDroppings.com

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CajunAngele
LSU Fan
Member since Oct 2012
11168 posts

ObamaCare: Death Spiral of Failure, It Is a New Welfare


quote:

We Told You So

By Robert Tracinski

As the Affordable Care Act--otherwise known as ObamaCare--begins to be implemented, we are seeing its first big consequence: it is making care less affordable.

The New York Times reports that "Health insurance companies across the country are seeking and winning double-digit increases in premiums for some customers, even though one of the biggest objectives of the Obama administration's health care law was to stem the rapid rise in insurance costs for consumers."

"Even though"? In fact, Obamacare is simply doing what a lot of people predicted it would. Critics of ObamaCare warned that it would produce precisely the kind of premium increases we are now seeing, for precisely the reasons that new reports are now citing.

I was one of those critics, and I take no joy in pointing out that we told you so.

In 2009, as ObamaCare was being crammed through Congress, I gave three reasons for predicting disaster.

The first is "guaranteed issue," which requires insurance companies to cover you for a pre-existing condition. This forces insurance companies to take on extra costs, while reducing the incentive for healthy people to pay their insurance premiums. Why pay premiums for years, if you can just wait until you're already sick to buy coverage? So insurers are mandated to take on extra costs while losing revenues. As I wrote back in 2009, "Rather than increasing the number of insured by making health insurance more affordable, this bill makes health insurance more expensive and increases the incentive to simply drop your insurance until you need someone to pay for your medical bills."

And so we see today a report that as this takes effect and people who are already sick demand insurance, "paying for their care could add massive costs to the system."

"For one thing, they'll have no waiting period to get insurance. Someone who just got bad news from the heart doctor can walk into an insurance office and order a policy, Davis said. 'It's as if could you go home, see your house on fire, call Allstate and say, "Cover my home,"' Davis said.

"With medical bills easily reaching into the millions of dollars, a few of those cases could quickly add up, significantly boosting overall rates."

That leads to the second provision we warned about, the individual mandate. This is supposed to prevent free riders from waiting until they are sick by forcing them to buy insurance. But the penalty for refusing to buy insurance was set at $750, which is far lower than the cost of insurance. As I wrote back then, "we end up getting the worst of both worlds. This provision won't actually drive anyone to buy health insurance and prop up the risk pools for those who are insured. All it will accomplish is to create a brand new form of tax."

Finally, there are the federally mandated health-insurance exchanges, in which the federal government dictates what insurers are required to pay for, banning less expensive bare bones coverage and requiring insurance policies that cover more procedures and "preventative" tests. As I warned, "under the guise of making health insurance more affordable, this bill will restrict your menu of choices to include only the most expensive options."

Lo and behold, we see reports today that insurance premiums are going up partly because of "new federal rules that increase the services that health insurers are required to include in the health plans they sell."

There are also a couple of new reasons why rates are going up. We couldn't predict every negative effect of ObamaCare, because as Nancy Pelosi told us, Democrats had to pass the bill so we could find out what was in it. Thus, Peter Suderman points to a rule that requires insurance companies to refund part of their premiums if they don't spend enough on patient care in a particularly year. Suderman explains the results.

"If claims are low in a given year, they end up rebating the difference to the customer because of the MLR rule. If claims are unexpectedly high, however, they end up eating the difference. Insurers thus have an incentive to protect themselves by charging high premiums at the outset, and then paying those premiums back in rebates should claims come in at low or expected levels."

And then there is the extra cost passed on from new taxes on health insurance. Imagine that: when you tax something it becomes more expensive.

SNIP SNIP

But I don't think that's any kind of mystery. The consequences of ObamaCare--particularly the built-in "death spiral"--are so predictable that I don't think the legislation's architects can profess innocence. From the beginning, I have had suspicions, so to speak, that a stable health insurance industry was not the goal of ObamaCare. Rather, I warned: "It is an attempt to turn health insurance into what the left really wants: another welfare program in which everyone is entitled to free benefits, mandated by the government."

"But this would wreck private health insurance, making the whole industry financially unsustainable....

"This bill so comprehensively wrecks private health insurance that pretty soon a 'public option' will seem like the only alternative, and they will already have put into place one of the new taxes needed to pay for it. If the left's goal is to impose socialized medicine in America, this bill does it in the most callous and destructive way possible. It smashes private health care--then leaves us stranded in the rubble, at which point we will be expected to come crawling back to the same people who caused the disaster and ask them to save us."


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dante
LSU Fan
Kingwood, TX
Member since Mar 2006
6625 posts

re: ObamaCare: Death Spiral of Failure, It Is a New Welfare


quote:

"This bill so comprehensively wrecks private health insurance that pretty soon a 'public option' will seem like the only alternative, and they will already have put into place one of the new taxes needed to pay for it. If the left's goal is to impose socialized medicine in America, this bill does it in the most callous and destructive way possible. It smashes private health care--then leaves us stranded in the rubble, at which point we will be expected to come crawling back to the same people who caused the disaster and ask them to save us."


Obama said along that he favors the "single payer" or government funded health care and this bill would just be the first step to achieve that.






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CamdenTiger
Member since Aug 2009
25915 posts

re: ObamaCare: Death Spiral of Failure, It Is a New Welfare


All part of the plan...





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EZE Tiger Fan
Member since Jul 2004
23494 posts

re: ObamaCare: Death Spiral of Failure, It Is a New Welfare


quote:

Obama said along that he favors the "single payer" or government funded health care and this bill would just be the first step to achieve that.


This. I don't get the "surprise" here.






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CowboyPride
Oklahoma State Fan
Louisiana
Member since Oct 2012
136 posts

re: ObamaCare: Death Spiral of Failure, It Is a New Welfare


This article is pretty sensational. I thought it was common knowledge that premiums would go up in the short term?

Didn't Clinton try to pass similiar legislation using the private market?






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udtiger
LSU Fan
Louisiana
Member since Nov 2006
22481 posts

re: ObamaCare: Death Spiral of Failure, It Is a New Welfare


F.

O.

R.

W.

A.

R.

D.

!






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Tiger n Miami AU83
Auburn Fan
Miami
Member since Oct 2007
31898 posts
 Online 

re: ObamaCare: Death Spiral of Failure, It Is a New Welfare


News Flash...

Health Care costs increase, premiums have to increase. Not that complicated.







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CajunAngele
LSU Fan
Member since Oct 2012
11168 posts

re: ObamaCare: Death Spiral of Failure, It Is a New Welfare


quote:

News Flash...

Health Care costs increase, premiums have to increase. Not that complicated.




Obama is a



abcnews says so...

quote:

Sep 25, 2012 1:19pm

Rising Health Costs Undermine Obama Pledge to Curb Trend




President Barack Obama's signature on the health insurance reform bill at the White House, March 23, 2010. President Obama promised the legislation would help reduce health insurance premiums, but growth has continued. (Official White House Photo by Chuck Kennedy)

abcnews






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SilverSpurs13
LSU Fan
Baton Rouge, LA
Member since Aug 2011
1031 posts

re: ObamaCare: Death Spiral of Failure, It Is a New Welfare


You are the most overdramatic poster on this board





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CajunAngele
LSU Fan
Member since Oct 2012
11168 posts

re: ObamaCare: Death Spiral of Failure, It Is a New Welfare


I like to newsflash back, it's how I roll. amirite

I threw in the Obama LIAR KING picture for acc the poster that likes Obama is King threads to borrow.






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Champagne
New Orleans Saints Fan
French and Spanish Empire Border
Member since Oct 2007
10648 posts

re: ObamaCare: Death Spiral of Failure, It Is a New Welfare


It's been a fairly open secret that Obamacare is intended to be the first step towards establishment of a FedGov National Health program, "single-payer" welfare entitlement.





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stuntman
LSU Fan
Florida
Member since Jan 2013
1040 posts

re: ObamaCare: Death Spiral of Failure, It Is a New Welfare


“It is amazing that people who think we cannot afford to pay for doctors, hospitals, and medication somehow think that we can afford to pay for doctors, hospitals, medication and a government bureaucracy to administer it.” Thomas Sowell knocking it out of the park....again.





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CajunAngele
LSU Fan
Member since Oct 2012
11168 posts

re: ObamaCare: Death Spiral of Failure, It Is a New Welfare


quote:

It's been a fairly open secret that Obamacare is intended to be the first step towards establishment of a FedGov National Health program, "single-payer" welfare entitlement.



Now it may be but we were not told this when it was voted on in the middle of the night and forced upon us. You know how dems think they are the majority rule? And the 'geographics' have changed and America is left Obama now?

It is another lie and 2014 elections will be 2010.







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ljhog
Arkansas Fan
Lake Jackson, Tx.
Member since Apr 2009
9913 posts

re: ObamaCare: Death Spiral of Failure, It Is a New Welfare


quote:

even though one of the biggest objectives of the Obama administration's health care law was to stem the rapid rise in insurance costs for consumers

No it wasn't. The objective was and is to force everyone but the very wealthy onto a single-payer system.






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TrueTiger
LSU Fan
Chicken's most valuable
Member since Sep 2004
8899 posts
 Online 

re: ObamaCare: Death Spiral of Failure, It Is a New Welfare


It's not surprising of course; it was entirely predictable, easily predictable.

I guess the only thing that surprises me a little, is how many stupid people there are who believed the big lie.

That is most disturbing.






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