Obama Healthcare Issues

Why Obama’s plan won’t work I already discussed financial consultant Paul Krugman’s statement that Obama’s plan leaves 15 million US citizens lacking affordable health care. Krugman is too optimistic. My analysis is that Obama’s plan leaves most USA citizens uninsured in the end. And here is why : Obama mixes this with a couple of fascinating twists. First is a mandate that health insurers must accept all comers, regardless of how well or how sick they are. 2nd is that insurers must cover established conditions. As healthy people back out of paying for health care, that means the leftover people finish up paying more, which causes more people to drop out, which causes health care insurance to become more expensive, and then yet more people drop out. The final result is that only sick people end up paying for medical care — which isn’t a usable choice, as the little share of sick folks simply can’t pay for current levels of health care. 15% of the nation’s GDP is tied up in health care today, and sick folks don’t generate 15% of the nation’s GDP. There just ain’t no’there’ there. in short , without a remit that healthy people subsidize the care of sick folks, there is no universal health care, just lots of dead sick folks. The medical care insurance industry is already in a death spiral, merely a slow one because now they can kick the sickest folks off their rolls. Now, Obama adds a slick tiny move to his health care plan — a’reinsurer pool’ sponsored by the governing body that takes the sickest of the sick off the healthcare insurance company’s rolls — but I’m not sure that this would end the death spiral that otherwise results from mandating that insurers accept all comers, but not mandating that everyone buy insurance. When I work the numbers, Obama’s plan simply doesn’t work — the medical insurance death spiral gets even worse. My point, the point I have been making all along, is that unless *everybody* is required to participate either thru purchasing private insurance or collaborating in a public program ( and remember, at least 5 million of the uninsured *CURRENTLY QUALIFY FOR PUBLIC INSURANCE PROGRAMS*, they have just never gotten around to signing up ), we finish up with a system where only sick people pay — and, in the final analysis, with a lot of dead folk. Krugman is an optimist. I am not. Krugman sees 15 million uninsured. I see a lot more, if Obama’s plan were passed as-is — which, naturally, it will not be, since as a plan this would have such horrific effects that when the CBO works the numbers the whole Congress would flinch in horror and send it to the shredder. – http://obama-healthcare-issues.blogspot.com/ .