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Wednesday, October 16, 2013

The Tea Party Gave It Their Best Shot; Congress And The President Own It

Disclaimer: except for the CNBC link, the rest of the post is entirely opinion. It's my understanding of ObamaCare and I could be completely wrong. But I doubt it. At least not completely.

CNBC is reporting: 99.6% of those who visit, do not enroll. Of those who enroll, the vast majority will NOT purchase an insurance plan. Remember: if one's income is TOO low, they will not qualify for government subsidies, something that was not well advertised. Of those who do purchase insurance, most will have cancer, AIDS, or AIDS-equivalent medical expenses. Of those who are healthy and do purchase an insurance program, most will drop out after two or three months because of high co-pays or high deductibles.

The most interesting wrinkle: income verification. If that is in the compromise, that will further delay the process. 

Insurers cannot survive if the only purchasers are those with cancer, AIDS, or with AIDS-equivalent medical expenses. It has been reported that many (most?) of the big insurers bailed out of the Federal exchanges; it is my understanding that most (all?) of the insurers underwriting the Federal exchanges are small, undercapitalized companies. It is a different story for state-run exchanges where, it appears, the insurers already working in those states simply put their plans on-line.

My hunch is that if nothing is changed over the next few months, we will start seeing stories of insurers underwriting the Federal program going broke by next July (2014), just in time for the November election.

Trainwreck.

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