American Elephants

The Inevitable Disaster of ObamaCare Begins: by The Elephant's Child

Democrats don’t get incentives.  It’s poorly understood incentives that lead to unintended consequences which are the nasty results that completely screw up a policy that was going to change everything for the better.

The Obama administration has set into play some dreadful dynamics with its 2000+ page health care reform bill.  They meant so well, and were so delighted that they had passed a bill that they were unable to pass for over a hundred years.  Turns out there were some real reasons why it had never passed.

Obama promised that consumers would be able to keep their coverage if they were happy with what they had.  The result is an avalanche of bad news for those consumers.

840,000 Midwesterners will lose their policies. The Principal Group has announced its plan to drop health insurance policies from its range of products.  The Iowa-based company provided coverage to about 840,000 people who receive their insurance from their employer.  Principal is just the latest in a long list of insurers to drop coverage.

30,000 McDonald’s hourly workers are at risk of losing their coverage.  The plans can’t meet the requirements of new regulations that HHS is writing to implement ObamaCare. Because McDonald’s has relatively high employee turnover, it spends more on signing people up and on other administrative costs than the new rules will allow. (85% medical care and 15% administrative costs).

“There is not any issuer of limited benefit coverage that could meet the…standards,” said Neil Trautwein, vice president of the National Retail Federation.  Millions more policies are at risk at such companies as Blockbuster, Disney, CVS, Staples and Home Depot.

22,000 New England seniors are losing the coverage they have.  Harvard Pilgrim announced this week that it is getting out of the market for Medicare Advantage in response to the massive cuts in this popular program.  This dumps seniors back into fee-for-service Medicare, where they may have a hard time finding a physician who will see them.

Individual child only policies are vanishing. Children must be insured on their parents’ policies, but parents who could not afford health insurance often bought child-only policies for their kids. (Parents do that).  Ans such policies under the new rules are no longer available.

Retiree policies are in jeopardy, and many smaller companies may shut down as they conclude, like nHealth in Virginia, that it is not possible to navigate the maze of new regulations and succeed.

Current estimates project a shortage of 63,000 doctors by 2015, with a continuing worsening of shortages through 2025 as an additional 36 million enter Medicare.

This is the inevitable result of ObamaCare.  And there is far more wreckage to come.  Regulations and rules are made by regulators who have little or no understanding of business and how it works, and regard profit as a dirty word.  If you do not understand that without profit, there is no business, you’re not apt to make sensible regulations.

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