Thursday, August 11, 2016

Obamacare's Continued Unraveling

Flirtin' with disaster
Y'all damn sure know what I mean
You know, the way we run our lives
It makes no sense to me
--Molly Hatchett

Predicting the negative consequences of Obamacare was straightforward. Higher costs and prices, capacity leaving the system, lower quality, less availability...not to mention adverse selection in the insurance pool.

While all are in motion, the most evident one currently is price. Insurance premiums have been rocketing higher. The so called state insurance exchanges, where enrollees can connect with state-sponsored insurers, have been collapsing. All major insurers claim that they are losing money on the exchanges.

That means another year of premium hikes ahead. On average, annual insurance premiums are forecast to increase 9% in 2017 although the jump in some states will be much higher.

The solution proposed by Democrats including presidential candidate Hillary Clinton? More taxpayer funded advertising to increase public awareness. That's right, people just don't understand it yet.

Propaganda rarely reverses train wrecks.

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