Wednesday, January 22, 2014

So how's that health care insurance for "nearly everyone" working out for you?

Advocates of Obamacare in defense  of it in spite of all the flaws and the ever increasingly list of unintended and intended- but not advertized- consequences ( eg tax payer subsidies for insurance companies  that might loose money on the exchanges) typically fall back on the twin refrains of "health care will be available for nearly everyone" and social justice is being promoted.

Of course, those folks are conflating health care with having insurance but ignoring that for a moment it looks more and more unlikely that the nearly everyone )(usually estimated to be about 30 million) will  actually get the insurance cards . So far  fewer of the uninsured are actually shining up on the exchanges.McKinsey did a study and their analysis indicates that the vast majority of those who are signing up were already insured and only about 11% were moving from the uninsured group to the insured group. See here for some details of that study. If McKinsey's analysis is even close to be correct the 30 million claim will not likely be reached.

As far the social justice argument let me repeat that Rawls defended inequality if it benefited the most disadvantaged in society but while some of that is happening with Obamacare , a significant number are forced into paying more for insurance and often buying benefits which they can never use.

So the plan seemed to be that the young, healthy would sign  up in sufficient numbers to fund the scheme  and the uninsured would rush to the website and sign up since getting those 30 million insured was the purported reason for the legislation in the first place. So far it seems that neither of those things are actually happening in sufficient numbers to   prevent the so called death spiral.More aspects of the Obamacronycare law come to light, one of the most recent  one being the news that HHS is writing or rewriting the details of subsides to bail insurance companies to make them even more generous.

And this quote from Coyote Blog which comments on the fact that many people who are now getting subsidies had insurance before:


"So, we know that 80% of the people are getting subsidized on the exchanges, and now we know that 70-90% of those previously had a unsubsidized policy beforehand.   This means that what the exchanges are doing is NOT insuring the uninsured, but converting people previously responsible for their own health care into government dependents.  The more cynical out there will argue that was the whole point in the first place."


And for  what party will folks dependent on the government likely  vote?

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