The Obamacare Boondoggle

By Attorney Jonathan Emord
Author of “The Rise of Tyranny” and
“Global Censorship of Health Information” and
“Restore The Republic“
November 4, 2013
NewsWithViews.com

Obamacare is fast becoming the most costly government boondoggle in American history. This past Friday we learned that on its first day of dysfunctional operation, Healthcare.gov yielded a total of 6 sign-ups nationwide and the day after, just 248. Even more troubling, the roll-out of Obamacare is causing an explosion in new sign-ups for Medicaid, as tens of thousands of new Medicaid enrollees add huge new financial burdens to states with already strapped budgets. In the end, Obamacare is a costly flight of fancy, destined never to get off the ground because the all important healthy youth are just not signing up for the program. Indeed, young healthy people have no incentive to sign up because if they become ill they can sign up then and suffer no consequence (Obamacare prohibits insurers from denying coverage to those with pre-existing conditions).

Any other president who had made such a costly and ruinous program his defining moment, his only major “achievement” to show for six years in office (and the one he proudly proclaims should bear his name), would be shamed, even mortified, but not Obama. He finds a way to blame everyone else for the dysfunction and stands at the helm of his sinking ship commanding “full steam ahead,” refusing to admit that his is a lost cause. The portent of Obamacare is Barack Obama’s undoing as President.

Former President Bill Clinton is not so naïve as Obama. Over a year ago, he told fellow Democrats that Obamacare would only work if “young people show up,” meaning that young healthy people had to sign up in large numbers or else the program would become so uneconomic that it would fail. He said that if young people did not “show up,” there would be no way to contain costs because those with pre-existing conditions and the sick elderly would draw down funds in much larger amounts than they paid into insurance. In short, the system could not support itself and would collapse. That is indeed what is happening and likely to happen into the foreseeable future.

Because Obamacare prohibits insurance companies from dropping coverage for those with pre-existing conditions, the ever growing pool of elderly Americans who have such conditions can only be affordably financed if large numbers of young, healthy and financially able people between the ages of 18 and 35 sign up. That is why the Administration has spent tens of millions of dollars on Obamcare advertising geared to attract young adults (but they are not buying it).

Obamcare depends on young people paying the bills without using their insurance; that finances older people and others with pre-existing conditions who immediately draw down insurance reserves to pay costly, recurrent medical bills. Without the young healthy people signing up, revenues are insufficient to cover pay-outs, forcing premiums to rise to unaffordable levels and causing the whole thing to collapse.

Those who cannot get private insurance or adequate coverage due to pre-existing conditions will predictably sign-up for Obamacare. Their disproportionately large health care costs have to be covered by those who are healthy, who are paying into but not drawing down insurance, but the young and healthy have no incentive to pay hundreds of dollars a month for insurance. Indeed, many do not have the financial wherewithal to do so.

continue article at News With Views:

http://newswithviews.com/Emord/jonathan324.htm