‘Affordable’ Care Act
So, the Supreme Court decided today that the government could impose a mandate on the public to buy something from private industry.
It’s a bizarre concept, and even more bizarre that it was ruled “constitutional.”
Anyway.
Just figured I’d throw some cold water on this victory party for a second because, while there’s a lot wrong with health care, this is not even remotely a solution.
The way insurance works is you pay premiums in anticipation of a future need for health care.
If you are too poor to pay insurance premiums, you can seek benefits through Medicaid or other state programs.
BUT NOW….
There can, legally, be no discrimination against pre-existing conditions when issuing policies.
ERGO
No one has the slightest incentive to pay premiums.
That is not a sustainable “insurance” model.
“BUT EVERYONE IS REQUIRED TO BUY INSURANCE!!! TO OFFSET THOSE COSTS!!! OOOOOBAAAAAMA!!!!”
Not really. The annual fine for not buying insurance is only a couple hundred dollars - FAR less than the cost of yearly premiums. And that’s assuming the government can even collect/enforce it.
So, congratulations, America. You did ruin health care, you’re just too dense to understand why. Most insurance stocks (Aetna, WellPoint, Cigna) are down 3-6% today. On news that everyone in the country is supposed to buy their products. Hmmm. It seem unlikely to me they will do much better in the years to come, given how this legislation will have sick people banging down their doors while all the healthy customers run for the hills.
Unless, of course, the government decides to guarantee these companies’ profits (like it does for so many others). Then they will do fine.
Because the government will pay for it!!!!
ALL FOR FREE!!!!
BECAUSE EVERYTHING THE GOVERNMENT GETS INVOLVED IN BECOMES MORE AFFORDABLE!!!! LIKE HOUSING AND STUDENT LOANS!!!!
WE DID IT!!!!!
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dwangelo posted this
