[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

Dan DiMicco's solution for what ails U.S. economy? Manufacturing

Federale In Japan: It Works—And It Could Work In The U.S. Too

850 voters in NYC are officially 164 years old

Revealed Autopsy Destroys 'Gentle Giant' Michael Brown 'Hands Up, Don't Shoot' Story

Soldier, 24, shot dead by Muslim convert Michael Zehaf-Bibeau who opened fire on Canadian Parliament

INELIGIBLE DACA BENEFICIARIES DISCOVERED ON NC VOTING ROLLS

Multiple shooters reported in Canada attack By Ashley Fantz and Josh Levs, CNN

Armed Huey P. Newton Gun Activists and Black Panthers Marched Through Dallas Yesterday

So sez secular LP poster Jwpegler: "Fund[ies] who run around screaming and hollering about gays are more like Old Testament Jews than New Testament Christians"

How the Obama administration handles scandals and scares

Obama Has Cut a Deal with African Leaders to Bring Ebola Patients into US

A Cultural Marxist Tries To Deconstruct Japan. Guess What, He’s American

Ebola Czar Says Population Growth Is Top Issue Facing the World

Blow by blow, Ferguson cop's FULL version of why he shot Michael Brown: 'Incredibly strong' teen pressed gun to cop's hip, the gun was jammed by a finger - and kill shot was fired as Brown 'charged'

EU Shuts Down British Power Plants

Facebook Censors Anti-Obama Postings

Shiite Kuwaiti Imam: ISIS Sold Thousands of Women, Girls, and Children to the Jews in Israel

Australian ISIS Fighter Threatens West: We Will Conquer White House, Buckingham Palace

HOUSE JUDICIARY COMMITTEE STAFF REQUEST BRIEFING ON USCIS IMMIGRANT ID SOLICITATION

#4558 - Warning: Extremely Disturbing Images. Woman Stoned to Death by ISIS in Syria The Internet - October 21, 2014 - 04:58

Chicagoland voting machine casts candidate’s vote for his Dem opponent

BREAKING: NBC freelance cameraman Ashoka Mukpo no longer has Ebola virus, free to go home.

Monica Lewinsky’s return is scaring Hillary’s backers

White House Deletes Obama's 'Unpaid Bills' Admission from Transcript

Queer Houston Mayor Stands Down on Subpoena after Lawlessness gets National Exposure

UH OH: New Ebola Czar believes ‘overpopulation’ the biggest leadership issue for the world

Obama Repeats: You Can’t Get Ebola on a Bus—Day After Bus Quarantined in D.C.

Surveillance Video Apparently Catches Guy Doing Something at the Ballot Box

A Disgusted Texan Says David Brooks Can Keep His “Houston Model” Of Economic Growth

Hillary Clinton Flying Monkey Signs Deface Brentwood Ahead of L.A. Fundraiser

The Price of Papal Popularity

New York Court May Grant Personhood ToTommy The Chimpanzee

Thousands In New York To Protest Death of Klinghoffer Opera

A toxic president

Black Youth Gang Behind Brutal Attacks at U of I Campus in Champaign (Video)

Obama makes rare campaign trail appearance, people leave early

EXCLUSIVE: OBAMA ADMINISTRATION QUIETLY PREPARES 'SURGE' OF MILLIONS OF NEW IMMIGRANT IDS

How the feds block Ebola cures

No illness detected in Ebola patient's fiancee, family

Obama Voters Express Regret In New USA Today Poll

Socialists push for $20.00 an hour minimum wage, but wont pay that much

101st Airborne Won’t Get Full Protective Hazmat Suits for Ebola Mission in West Africa

In Idaho, Christian Pastors Ordered to Perform Fag Marriages. You Will Be Made to Care.

Guest view: Could Ebola patients be helped by Vitamin C?

General: US Troops Who Contract Ebola Will Be Quarantined in Liberia

City Threatens to Arrest Ministers Who Refuse to Perform Same-Sex Weddings (Idaho)

Bishops scrap welcome to gays in sign of split ("irregular" unions voted down)

Conservative US cardinal demoted by pope

What heaven's really like-by a leading brain surgeon who says he's been there: Read his testimony before you scoff...it might just shake your beliefs

Ebola Researcher: Disease Could Go Airborne at Any Moment


Status: Not Logged In; Sign In

Corrupt Government
See other Corrupt Government Articles

Title: Even with a High Court win, Obamacare won't work
Source: [None]
URL Source: http://finance.fortune.cnn.com/2012 ... 22/health-care-reform-hurdles/
Published: May 22, 2012
Author: By Shawn Tully
Post Date: 2012-05-24 23:14:48 by We The People
Keywords: None
Views: 395
Comments: 3

A new study shows that the basic requirements of President Obama's health care plan have been tried, and failed, in many states in the past two decades.

FORTUNE -- The Obama administration maintains that its Affordable Care Act is a complex construct that's endangered if the Supreme Court finds its central feature -- the requirement that all Americans buy health insurance -- unconstitutional. It's certainly true that eliminating the "individual mandate" will immediately expose the plan as unworkable. It can only succeed by creating a broad, universal insurance pool that collects big premiums from the young and healthy. If the young and healthy aren't required to sign on, they won't. Hence, the pools won't be remotely large enough to pay for the older, sicker folks who get the best deal, and are bound to flock to the state exchanges.

In reality, the reform plan's success doesn't depend on the Supreme Court's decision at all. Its faulty design virtually guarantees that all the things the administration warns will happen if it loses will happen anyway. Even if it stands, the legislation will spawn insurance plans crowded with high-cost folks, driving premiums higher, hobbling competition as carriers abandon the exchanges, and leaving tens of millions of Americans uninsured.

Here's the reason the Affordable Care Act's future is predictable: Its basic requirements have been tried, and failed, in many states in the past two decades. A new study, prepared by Milliman, Inc. for AHIP, the group representing America's healthcare insurers, examines the experience of eight states, including Kentucky, Maine and Washington, that adopted the two basic pillars of the Obama plan in the 1990s.

MORE: If Obamacare survives, employers may do it in

Those two measures are Guaranteed Issue, and Community Rating. The former requires that insurance companies accept all patients regardless of their medical condition, at any time they want to sign up. Community Rating dictates that insurers cannot charge different premiums based on health status, and face limits on how much they can vary premiums according to a person's age.

All eight states encountered similar problems. People who'd been previously uninsured bought coverage as soon as they suffered a heart attack or contracted diabetes. Pregnant women entered the plans, then dropped out after giving birth. Premiums for young, healthy people soared. Typically, a 60-year old's medical care runs about six times that of someone in their twenties. But in New York, insurers must charge exactly the same premiums for both. For many years, Maine limited the difference to just 20%.

So the young Americans needed to make the plans work mostly dropped out. Instead of shrinking the ranks of the uninsured -- the goal touted by the states -- their numbers often increased, rising 30% in Washington from 1993 to 2000. Premiums jumped as the insurance pools became dominated by older, sicker patients. From 1996 to 2002, for example, premiums in the individual market rose 44% in Maine. Carriers fled. By 2000, 31 out of 39 counties in Washington didn't have a single insurer offering coverage to people not covered by their employer or a federal plan.

By the early 2000s, most states either abandoned or radically changed the two provisions that caused the damage. Kentucky and New Hampshire repealed both guaranteed issue and community rating. Washington substantially loosened its provisions. New Jersey and Maine both expanded the range insurers could charge for patients of different ages, with Maine going from a limit of 20% to a band that expands to five-to-one by 2015. South Dakota and Iowa repealed guaranteed issue in 2004 and 2003 respectively.

MORE: Where CEO political dollars go

The Affordable Care Act is embracing the provisions that many states tried, and then rushed to escape. It imposes guaranteed issue, so that patients with any pre-existing condition must be granted coverage any time they apply. It also limits differences in premiums according to age to a three-to-one range. That would force insurers to raise premiums for 20-year olds by at least 50%, and lower them for 60-year olds to far below their actual costs, forcing the young and healthy to subsidize older, sicker Americans.

That goal may sound laudable, but it won't work. The Affordable Care Act professes to ensure that all Americans buy insurance, but undermines its own goals by setting penalties so low that the young and healthy, and many middle-aged and healthy, will not buy coverage. The penalties start at 2014 at either $95 a year, or 1% of income, whichever is higher. They reach a maximum of 2.5% of income in 2016. Those small penalties may be irrelevant anyway. The measure also provides that anyone who can't find a policy priced at 8.5% of their income or less is exempted from buying insurance.

The plan's champions argue that it will work where the state plans didn't because of the big subsidies it provides. But that's not what the math shows. Take a 30-year old, single person earning $50,000. He or she would get no subsidy under the Obama plan. A policy would cost our candidate, say, $10,000 a year, far more than that person is paying now--again, courtesy of community rating. The penalty for foregoing coverage is just $1250 a year in 2016.

MORE: We're having the wrong debate about rising health care costs

But remember, if the policy costs over 8.5% of income, you can drop your insurance and pay no penalty, and the $10,000 more than qualifies. So our healthy 30-year old is making a rational economic choice by going uninsured. In fact, he or she is really "insured" after all since a non-payer can sign up for coverage, no questions asked, any time they get sick.

It may be true that the Obama plan would work if it pulled all Americans into the insurance pools, even though that would force the young to pay more than their costs. But it doesn't come close. The Supreme Court drama is a distraction from the real issue: A "reform" plan that the experience of the states, and its own jerry-rigged system of penalties and subsidies, guarantee will fail. (1 image)

Post Comment   Private Reply   Ignore Thread  


TopPage UpFull ThreadPage DownBottom/Latest

#1. To: We The People (#0)

Good analysis, WTP.

buckeroo  posted on  2012-05-24   23:24:32 ET  Reply   Trace   Private Reply  


#2. To: buckeroo (#1)

Agreed.

This quote really stuck with me:

It can only succeed by creating a broad, universal insurance pool that collects big premiums from the young and healthy.

That sounds like Social Security. We're *forced* to pay in. If I had the option, I would drop out, because I know I'll never collect the *purchasing value* back. A lot of others, I believe, would do the same, and force the Ponzi scheme to finally collapse.

Rational buyers, dontcha' know... ;)

LoonyMing: I brandish my ignorance like a crucifix at vampires.
Translation: IGNORANCE IS STRENGTH

'It's now very common to hear people say, "I'm rather offended by that", as if that gives them certain rights. It's no more than a whine. It has no meaning, it has no purpose, it has no reason to be respected as a phrase. "I'm offended by that." Well, so fucking what?' —Stephen Fry

Capitalist Eric  posted on  2012-05-25   0:12:07 ET  Reply   Trace   Private Reply  


#3. To: We The People (#0)

.

I mean it's NOT like the entire history of humanity has proven over and over that COLLECTIVISM IS DEATH.

It's NOT like so called libTURDS/progressives have ever TRIED any of this nonsense before in any human population.

It's NOT like this entire socialist DELUSION of a free lunch has ever been proven in action to be an ACTUAL REAL FAILURE.

I mean ROME and the CCCP NEVER existed ?

Oh wait, actually yeah, YEAH they sure F'ing did.

gooberment FAIL = FAIL

Duh.

Spoiled, stupid and ignorant, brain dead phuckwads, libTURD fools, tools, and idiots, are the real sickness; the messiah "king" obammy and his regime are only the symptoms.

Mad Dog  posted on  2012-05-25   2:18:54 ET  Reply   Trace   Private Reply  


TopPage UpFull ThreadPage DownBottom/Latest

[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

Please report web page problems, questions and comments to webmaster@libertysflame.com