Friday, November 15, 2013

Obamacare: An inherently flawed concept…

A major problem of ObamaCare, aside from its incompetent rollout and overreaching federal paternalism,  lies in its core assumptions.  It’s assumptions are so flawed and unrealistic that it is amazing the legislation made it past the desk of the naïve Pollyanna intern who wrote the first draft, never mind past the President and Congress.

Here are the plan’s assumptions:

  1. For the Plan to be self-sufficient it absolutely needs millions of younger, healthy subscribers who don’t require health care benefits to subscribe to it and pay into it every month.
  2. The plan allows those with preexisting conditions to subscribe at any time.

Those are the provisions of the plan that make it unworkable unless heavily subsidized by taxpayers not only in its startup years, but forever. 

Here is why:

The American people are not as dumb as the legislation presumes.  The young and healthy see no reason to subscribe.  Why pay $250 to over $500 a month for something they don’t need – especially when they can buy it later when you DO need it?

Conversely, and here is the killer, only people who need the coverage for imminent expensive medical treatment will sign up, whether they are young or old.

The young (under 40’s, mostly) will say, “hey, I’m healthy.  If and when I get sick or a disease, cancer, whatever, I can always sign up and start paying out.  No problem.  I might even get the Cadillac plan then.”

The 40, 50 and 60 somethings are more likely to sign up because they realize they may need coverage and expensive treatment sooner rather than later.  However, even the more affluent and healthy among this group may defer until Medicare kicks in.

The consequences are painfully obvious – so painfully obvious that even I might need to sign up to relieve the pain.

The people who don’t need health care RIGHT NOW will NOT sign up.  They will not pay into the Plan.  The people that believe they need health care RIGHT NOW WILL sign up – and they will suck out hundreds of times the amount they paid into the Plan.  Translated for the benefit of any progressives reading this:  The Plan’s expenses will greatly exceed the plan’s revenues and it will FAIL.  It will fail either because of a cataclysmic revenue shortfall, or because premiums and deductibles and out of pockets will have to be raised to astronomic levels.  It is as if the Pollyanna interns who wrote this had no idea why insurance professionals had actuarial tables for centuries. 

Oh darn, I forgot a detail about the ultimate goal of this legislative fiasco.  Progressives want the taxpayers, the REST of us, subscriber or not, to SUBSIDIZE Obamacare, the “Affordable” Health Care Act. 

The whole thing is a crock, all the way down to its lying, deceitful name.  Everyone who is associated with promoting, adopting and defending this deeply flawed piece of deception needs to be thrown out of office if not also convicted of  conspiracy to deceive the American public.  If stupidity were a crime, they would serve life.


Art said...

Ah, but didn't the Supreme Court call ObamaCare a tax? And won't those that don't sign up (the young and healthy) be taxed? And isn't the IRS going to enforce this pie-in-the-sky legislation?

So you see it is all perfectly calculated. Calculated to ruin our present health-care system!

Gerardo Moochie said...

I don't think it is very perfectly calculated. And I don't think the so-called "tax" is going to make people sign up, unless the unconstitutional "tax" is drastically increased or government (all taxpayers) HEAVILY subsidize the healthcare program. That is the ultimate victory for progressives in office.