The Obamacare deathcare system is dying and it may be completely dead before the next president is sworn into office.
As The Hill reported Thursday, two major insurers in the last month – Aetna and Anthem – both reversed course on their plans to expand in the marketplace. The five largest insurers say they are losing money on Obamacare. Several other high-profile insurers are raising concerns about the mix of consumers (not enough young, healthy people and too many old and sick people are signing up) and whether they can continue selling Obamacare plans.
As I predicted in 2013, all but a few crony insurers will go out of business over Obamacare. The few surviving crony privileged insurers will then get all the business through the exchanges; and the progressives will be one step closer to their goal of a single-payer, government-provided insurance system.
An analysis by the Kaiser Family Foundation – an Obamacare-friendly organization — predicts that already high rates are going to increase at least 9 percent next year nationwide. And Blue Cross Blue Shield has announced that it will raise rates in Alabama by 40 percent and Texas by 60 percent.
Ostensibly designed to keep health insurance costs down, what Obamacare has done is drive up prices for health insurance premiums and deductibles and significantly skew the market cost of services. Higher premiums and deductibles created disincentives for young healthy people to throw money into the Obamacare pit for services they’ll never use and deductibles they’ll never reach unless they experience a catastrophic event. Meanwhile, people getting heavily subsidized or “free” coverage are overusing health services by seeking treatment for common minor illnesses and injuries.
Only 11 million people bought coverage through the exchanges in 2016, just over half the number predicted by the Congressional Budget Office (21 million). And according to McClatchy, about 1.6 million of those who signed up were dropped from the rolls by the end of June because they never paid a dime of premiums.
Insurance companies are howling for a bailout, as we predicted they would from the beginning. Hillary Clinton, of course, plans to throw even more money at it. She wants to increase subsidies so that people only pay 8.5 percent of their income on premiums, down from 9.5 percent as the law currently stands. She also wants to offset rising deductible costs by creating a $5,000 per family tax credit.
What Obamacare has wrought
Thanks to Obamacare we’ve seen health insurance premiums rise, deductibles rise, taxes rise, rural and community hospitals close, penalties for non-participation enforced, loss of privacy, the creation of health system monopolies and the retirement of many doctors. Medicare now has a $43 trillion unfunded liability. And hundreds of Obamcare “Innovation Center” cubicle dwellers are creating “cost-containment” strategies that will lead to rationed care. Already, 75 so-called “innovation models” to ration care have been rolled out, with several of them mandating participation nationwide.
The American medical system is a racket for profit as it is. Americans need to free themselves of Obamacare by taking charge of their own health and avoiding modern medicine at all costs. Obamacare’s real costs are not counted in dollars. That’s because modern medicine is not “healthcare,” but sickness care.
The real solution is to turn to a free market in which consumers either negotiate costs directly with insurance companies for coverage they need at a cost they can afford, or better, where the consumer negotiates prices and treatment directly with the healthcare provider.
It’s self-evident that central planning fails every time it’s tried (see Venezuela, Soviet Union, Cuba, North Korea, etc). There has not been a free market in health care for more than 60 years – a period which has seen treatment costs rise exponentially as government intervention in the marketplace has increased.
One can only hope that Obamacare will be allowed to pass away to wherever it is that immoral socialist programs go when they die. But the more likely outcome is more money will be thrown at the failing program in order to reward the crony corporations for standing up for Obama’s greatest failure while it collapses around them.