I was surprised at how bold Obama was speaking of his signature legislation, Obamacare, at the State of the Union address. After being called on the carpet for repeatedly promoting false notions of the benefits of Obamacare, he sure made it sound like a wonderful thing and that his critics were just bitter, jilted brides who got left behind.
But facts are stubborn things. The young aren’t signing up to offset the cost of the sick and elderly who are signing up also. Eventually, the insurance companies will have to raise rates to compensate which means many of the sick won’t be able to afford their policies even with the subsidies.
The truth of the numbers coming out of the White House aren’t exactly rosy. They are counting people who put an insurance plan in their shopping cart but haven’t checked out. The bulk of the people signing up are signing up for Medicaid, not for policies on the exchanges. And they aren’t subtracting all the people who lost their policies and can’t afford the new policies.
Eventually, the rising costs of premiums will cause the private insurance market to crash. Only those who work for larger companies that can afford a group plan and those on Medicare/Medicare will have insurance.
When the dust settles from Obamacare, we will discover that we ended up with something far worse than what we started with.
The only way that Obamacare will be able to work is by tyranny. The penalties for not signing up will have to become very punitive (and they will if it survives). A new enforcement agency will be required for non compliance. And insurance companies will become little more than a federal bureaucracy because they won’t be allowed to raise rates to cover their costs. The government will have to infuse them with large amounts of cash which always comes with many strings of attached. Eventually, the government think that cutting out the middleman can save them a lot of money and cut the insurance companies out altogether like what they did for the college loan program cutting out the banks.
Which makes you wonder if that was the plan all along.