Why ObamaCare was destined to fail.
I am not one of the people who said we should sit back and watch the ACA implode. I want to repeal it. I want it gone. However, I do see where it is going to implode.
The way the system stays profitable, heck even operating, is to have the young and healthy pay premiums they will never use up in order to cover the overuse of premiums by the elderly and sick. Never a good basis, but okay I see why they did this.
Then written into the ACA was a provision that adult children (you know, those young and healthy folks) would be able to stay on their parents’ insurance (those parents are the sick and old btw) until the ripe old age of 26. Interesting…wouldn’t 27 year olds be teetering on the edge of using more benefits than they pay in?
When I was 27, I was being seen for arthritis and tendinitis, I was having a baby and my back was starting to fall apart. Many of my friends were just starting to really NEED their doctors. So much for having the young and healthy pay higher premiums.
But wait, there’s more! These young and healthy folks often do not have insurance. It wasn’t financially wise for them to spend money on insurance when they can pay cash to any doctor if/when they need one. By requiring them to buy insurance now, or pay a fee…sorry…TAX…many are going to choose the tax, then set up their with holdings so that they pay into their taxes at the end of the year. Thus eliminating the government’s ability to collect the tax easily.
Now, I know what you are saying “But those that DO sign up for insurance will totes help make up costs elsewhere!” Oh really?!?!? Well, consider this tidbit of info. Because businesses are required to offer insurance to employees who work over 30 hours a week (thank you ACA), many businesses have cut employee hours to BELOW 30 hours a week.
As a result, a new problem has risen. When these young and healthy people sign up for insurance, they now fall into a financial bracket where they are eligible for SUBSIDIES!!!! Hooray!!!! That means the government is footing the bill, partially, for the people who are supposed to help cover the costs of those who are likely to use LOTS of the benefits. Pardon me, but isn’t that counter-productive????
So, when you put these three facts together you get a clusterf*@! of epic proportions!!!!! See Nancy Pelosi, this is why you should always read the fine print before signing on the dotted line. The failure of the ACA was written into it from the get go.