Saturday, April 23, 2016

OgbjmaCare Failures Continue : Short Term Policies Gaining

The question that remains is why so many among us are ready to submit to the tyranny of OgbjmaCare and to those that designed it? Where is the real push back against this nightmare? Republicans? Conservatives?

Where is the outrage? Why haven't those that have told us time and time again they will defund or replace this tragic and destructive program but have done nothing. The entire government is totally dysfunctional - every aspect of government is corrupted. The entire government is out of control and nobody is doing anything of any substance to stop the destruction. Even our military is being destroyed before our very eyes by the progressive socialists liberal democrats, and all the while the Republicans sit on their collective hands.

Want to know why the base of most Republican and  Conservative voters are frustrated and angry with our politicians that claim to be working for us? Which crisis do you think will be the one that brings us back to common sense and logic?

Or is this the new normal that Mr Ogbjma called for back in 2008, " I will fundamentally transform American".  To get along, go along? Is it that that it's just so much easier to let others do the heavy lifting while we delight in our smart phones?

Obamacare’s Unintended Consequences: People Buy Short-Term Policies
By John R. Graham

Obamacare has driven individual health insurance premiums up so high people are forgoing comprehensive coverage in favor of short-term policies:
Robin Herman, the 34-year-old owner of a marketing firm in San Francisco, bought a short-term policy in December. The monthly cost of her short-term coverage, plus conventional ACA-compliant plans for her two children, is roughly one-quarter of what she would have paid for conventional health plans covering all three of them, she says.
“This is saving me a ton of money for the year,” she said, despite the penalty. Plans that comply with the health law’s rules cost more than her old pre-ACA policy and are “just not affordable,” she said.
(Anna Wilde Mathews,” Sales of Short-Term Health Policies Surge,” Wall Street Journal, April 10, 2016.)
Sales of these policies have doubled or more since 2014, according to sources cited by Ms. Mathews. This surely feeds into the problem that Obamacare enrollees are sicker than expected: The healthy candidates are choosing these policies.

Because these policies are underwritten for pre-existing conditions, the healthy can buy them. However, when the term is up, they are underwritten again. This is very perverse. Imagine if your term life insurance policy lasted only one year, after which you were underwritten again. If you had a heart attack, for example, your premium would jump dramatically next year, such that you could not afford it. The whole point of the term life insurance would be defeated!

That is not to say short-term medical insurance is completely wrong-headed. It is appropriate for exchange students and other visitors to the U.S. However, it would not usually be an appropriate choice for permanent residents of the U.S.

With Obamacare, of course, if these folks fall sick they can apply for Obamacare coverage at the next open enrollment, which starts November 1. This ability of healthy people to shun Obamacare until they fall sick is called a death spiral (because it drives up premiums in the Obamacare exchanges).
A properly functioning health insurance market would pool peoples’ risks of falling ill over the long term, not just the time it takes the earth to revolve around the sun once. Unfortunately, this cannot arise as long as Obamacare persists.

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