Obamacare's Medicaid problem

[Quantum Windbag]

Why Obamacare won't work.

The disastrous rollout of HealthCare.gov may have another serious problem: A CBS News analysis shows that in many of the 15 state-based health insurance exchanges more people are enrolling in Medicaid rather than buying private health insurance. And if that trend continues, there's concern there won't be enough healthy people buying health insurance for the system to work. As the Obamacare website struggles, the administration is emphasizing state-level success. President Obama said Monday, "There's great demand at the state level as well. Because there are a bunch of states running their own marketplaces."
But left unsaid in the president's remarks: the newly insured in some of those states are overwhelmingly low-income people signing up for Medicaid at no cost to them.
Matt Salo, executive director of the National Association of Medicaid Directors, said, "We're seeing a huge spike in terms of Medicaid enrollments."

Obamacare's Medicaid Problem - Hit & Run : Reason.com

 

[Trajan]

its "Obamacaid" bro....


people will realize it sooner or later, like the "Its a CookBook!!!" moment ...

[ame=http://www.youtube.com/watch?v=dk01eeKMD_I]It's a Cookbook!!! - YouTube[/ame]


once they have enough people 'on board the ship'....it will be over, thats why they used subterfuge, hiding the pricing behind the viel etc etc ..

 

[percysunshine]

It will work just fine...until the day it doesn't. Which could be a lot further off in the future than I originally imagined;

(posted in part in another thread.)

"An insurance death spiral is a feedback phenomenon — a bad risk pool in Year One causes drastically higher premiums in Year Two which causes an even worse pool that year and on and on. The key to it is that it causes consumer premiums to go up so that only people with high expected health costs (for whom the high premium is still less expensive than staying uninsured) stay in and drive the cycle on. But in the Obamacare exchanges, the subsidy system is intended to prevent people from feeling the effect of annual premium increases after the first year. The subsidies are designed to make sure that each recipient pays only a certain percentage of his income in premium costs. That percentage stays essentially the same year after year, so if premiums get more expensive the government covers the difference."

An Insurance Death Spiral? | National Review Online


Remember, we learned in Obamas first term that he went to the Benito Mussolini school of economics. The one where they teach that public subsidies of private risk are a good thing.

Ultimately, Obamacare will not collapse in a death spiral with insurers refusing to write policies. It will be a budget buster, bankrupting the tax payer. The insurance companies will be fine.