New Year's Shoe for Obamacare

Well, you can knock me down
Step on my face
Slander my name all over the place
Do anything that you want to do
But uh uh honey, lay off my shoes
--Elvis Presley

Obamacare, in terms of the legal mandate to be enrolled in federally compliant health insurance plans, officially went live at midnight. Zerohedge suggests that the new year sets the stage for another problem.

The federal government reports that 2+ million have signed up for Obamacare. However, signing up does not equate to being covered by insurance. A plan is not activated until the first premium is paid.

A significant fraction of Obamacare enrollees have yet to make their first premium payment. Moreover, the program's myriad technical glitches and extended enrollment deadlines make it difficult for providers to verify coverage.

This means that some people seeking to consume healthcare goods and services in the first few weeks of the year may be unable to do so because they have not yet paid for coverage. Others may get turned away because providers cannot verify their coverage. Some providers may take on risk by providing goods and services to people whose coverage cannot be verified.

Furthermore, once they receive their first premium bills or co-pay invoices, some enrollees may realize that they committed to plans that they could not afford. Zerohedge suggests that it is likely that many of those who have had the time to muddle through the glitch-prone enrollment process are people who are lacking in disposable income--and thus more prone to experience sticker shock when they get their first bills.

The first few weeks of the year will reveal whether this shoe falls on the program.