Analysis: Would GOPCare Actually Stop the Obamacare Risk Pool 'Death Spiral'?

[endicom]

Townhall
Guy Benson
Mar. 10, 2017

One of the biggest reasons Obamacare is failing so badly (and remains remarkably unpopular, despite 'status quo bias' kicking in and improving its overall poll standing) is that the "risk pools" on the exchanges have consistently fallen far short of demographic composition benchmarks that would make the markets financially sustainable. Basically, too few younger and healthier Americans are signing up for coverage, which they've found to be too expensive -- choosing to forego unaffordable coverage by just paying the mandate tax penalty. This widespread trend has resulted in the risk pools being disproportionately stacked with older and sicker consumers, who are obviously more expensive to cover. As carriers adjusted their rates to reflect their increased costs by raising premiums, more healthy people fled the marketplaces. Eventually, this spiral convinced a series of major insurance companies to withdraw from many or all Obamacare exchanges across the country, a very worrisome sign for the future of America's individual and small group markets under the existing regime.  So that's a big part of the problem, in a nutshell. Obamacare's individual mandate tax was supposed to coerce people into participating in the law anyway, but rates and out-of-pocket costs proved too pricey.

More... https://townhall.com/tipsheet/guybenson/2017/03/10/analysis-would-gopcare-stop-the-obamacare-risk-pool-death-spiral-n2296626

[XenaLee]

Townhall
Guy Benson
Mar. 10, 2017

One of the biggest reasons Obamacare is failing so badly (and remains remarkably unpopular, despite 'status quo bias' kicking in and improving its overall poll standing) is that the "risk pools" on the exchanges have consistently fallen far short of demographic composition benchmarks that would make the markets financially sustainable. Basically, too few younger and healthier Americans are signing up for coverage, which they've found to be too expensive -- choosing to forego unaffordable coverage by just paying the mandate tax penalty. As carriers adjusted their rates to reflect their increased costs by raising premiums, more healthy people fled the marketplaces. Eventually, this spiral convinced a series of major insurance companies to withdraw from many or all Obamacare exchanges across the country, a very worrisome sign for the future of America's individual and This widespread trend has resulted in the risk pools being disproportionately stacked with older and sicker consumers, who are obviously more expensive to cover. small group markets under the existing regime.  So that's a big part of the problem, in a nutshell. Obamacare's individual mandate tax was supposed to coerce people into participating in the law anyway, but rates and out-of-pocket costs proved too pricey.

More... https://townhall.com/tipsheet/guybenson/2017/03/10/analysis-would-gopcare-stop-the-obamacare-risk-pool-death-spiral-n2296626

All of which was predicted and seen as the obvious outcome to this disastrous 'piece' of legislation.  But then, all of this intentionally-created-by-government chaos was orchestrated for the ultimate end game of forcing single-payer, the leftists' wet-dream all along.

[endicom]

All of which was predicted and seen as the obvious outcome to this disastrous 'piece' of legislation.  But then, all of this intentionally-created-by-government chaos was orchestrated for the ultimate end game of forcing single-payer, the leftists' wet-dream all along.

It is what it is, or will be what it will be, and all we can do is voice our displeasure. Phase 1 will be modified and then will or won't pass the Senate. Then we can start over in saying what we want in Phases 2 & 3.

If the 2018 election yields more small-government types in Congress then maybe some progress will be made.