Crush Liberalism

Liberalism: Why think when you can “feel”?

NYT: Now that ObamaCare is law, how about we tell you the bad side effects?

Would’ve been nice for the Old Gray Hag to inform her remaining readers of this stuff before they cheerleaded the bill to passage, no?  Excerpts:

New York’s insurance system has been a working laboratory for the core provision of the new federal health care law — insurance even for those who are already sick and facing huge medical bills — and an expensive lesson in unplanned consequences. Premiums for individual and small group policies have risen so high that state officials and patients’ advocates say that New York’s extensive insurance safety net for people like Ms. Welles is falling apart.

The problem stems in part from the state’s high medical costs and in part from its stringent requirements for insurance companies in the individual and small group market. In 1993, motivated by stories of suffering AIDS patients, the state became one of the first to require insurers to extend individual or small group coverage to anyone with pre-existing illnesses.

New York also became one of the few states that require insurers within each region of the state to charge the same rates for the same benefits, regardless of whether people are old or young, male or female, smokers or nonsmokers, high risk or low risk.

You mean charging everyone the exact same rates for different health needs, and requiring insurance companies to endure the heavy cost of covering someone with a pre-existing condition, results in staggeringly high rate increases?  Go figure.

Healthy people, in effect, began to subsidize people who needed more health care. The healthier customers soon discovered that the high premiums were not worth it and dropped out of the plans. The pool of insured people shrank to the point where many of them had high health care needs. Without healthier people to spread the risk, their premiums skyrocketed, a phenomenon known in the trade as the “adverse selection death spiral.”

The new federal health care law tries to avoid the death spiral (yeah, right! – Ed.) by requiring everyone to have insurance and penalizing those who do not, as well as offering subsidies to low-income customers. But analysts say that provision could prove meaningless if the government does not vigorously enforce the penalties, as insurance companies fear, or if too many people decide it is cheaper to pay the penalty and opt out.

Under the federal law, those who refuse coverage will have to pay an annual penalty of $695 per person, up to $2,085 per family, or 2.5 percent of their household income, whichever is greater. The penalty will be phased in from 2014 to 2016.

We’ve been saying that since the beginning.  I am rarely sick, averaging a trip to see the doctor for anything other than an annual physical exam about once every 3 – 4 years.  If my premiums get jacked up, I’m going to drop my health insurance.  I’ll pay any penalties, which would necessarily be lower than my premiums, until I get really sick…at which point I’ll go buy insurance and the companies can’t tell me “No”, thus raising everyone’s rates.  Once everyone else’s rates increase, then many of them will begin dropping their coverage, too, leaving fewer people in the pool and thus raising the rates on the saps who are still paying for their coverage.

This “premium increases – customer losses – premium increases” cycle will ultimately result in insurance companies going belly-up, i.e. the “death spiral.”  That is the goal of the left, despite their assertions to the contrary.  Once insurance companies all go out of business, then the feds will step in and fill the void with a single-payer government-run health insurance program.  Get ready for health care with the efficiency of the DMV and the compassion of the IRS.

The NYT could have educated folks before ObamaCare passed, but obviously, they were too busy trying to get B.O. a signature win on his otherwise worthless presidency.  Nope…no liberal media bias!

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April 19, 2010 - Posted by | big government, health care, media bias, New York, Obama, socialism

3 Comments »

  1. Well said, well said. I hope people will come out of their koolaid hangover to understand the damage this president proposes. Argh!

    Keep up the good work!

    Comment by George | April 19, 2010

  2. THANK YOU for posting this! I love your blog!!

    COMMON CENTS
    http://www.commoncts.blogspot.com

    ps. Link Exchange??

    Comment by Steve | April 19, 2010

  3. […] tells us more bad stuff that will result from ObamaCare As a follow-up to my previous post, the NYT is reporting even more negative fallout from the passage of ObamaCare.  Excerpt: William […]

    Pingback by NYT tells us more bad stuff that will result from ObamaCare « Crush Liberalism | April 21, 2010


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