Posted on 10/26/2013 3:24:43 PM PDT by IbJensen
There is no doubt that President Obama’s health care system promises to fundamentally transform America. It’s been touted as the saving grace of the working class.
But how feasible is it really?
We know it’s essentially a wealth redistribution scheme that takes money from one group of people in the form of forced tax payments, only to shift that money into the pockets of those who didn’t earn it in the form of government subsidies to their health care premiums.
But like all universal programs, the promise of free anything only works so long as you don’t run out of other people’s money.
That being said, a basic analysis of how Obamacare premiums work across the spectrum of America’s wide ranging socio-economic population suggests that it’s dead on arrival.
Once the forced mandates take hold one of two outcomes become inevitable, as noted by The Market Ticker, whose Karl Denninger took a detailed look at the government’s county-by-county premium data.
The consequences of implementation will be disastrous.
Either the Obamacare system itself collapses under its own weight, or the U.S. economy falls apart because of the extreme burden being hoisted on those who are responsible for paying the bill.
Either way, we’re looking at an almost instantaneous collapse of one or the other.
It’s an exercise in basic arithmetic that those who failed to read the bill before passing it should have considered prior to pushing this on the American people by way of a new stealth tax… unless of course the further impoverishment of America is their ultimate goal.
There are several very interesting statistical facts that come from this.
First, if you’re “27″, the average premium is $266.20/month or $3,194.40 per year. How many 27 year olds have an extra $3,200 to spend on this? Remember, this is the price that virtually every uninsured 27 year old must be willing — and able — to cough up in order to prevent the model this system is predicated on from collapsing.
If those 27 year olds don’t show up, and they won’t, then the system collapses instantly. If they do show up because the government threatens them with fines the economy collapses as $3,200 a year exceeds the average 27 year old’s disposable personal income after mandatory expenses (e.g. food, shelter, etc.) Remember, there are always exceptions but these premiums are averages and over large pools of people the statistical averages are what matters — not the ends of the barbell.
It gets better. The “average” 50 year old premium, again, for single coverage, is $452.87, or $5,434.44/year. How many 50 year olds will find that attractive compared against what they’re paying now? Probably more of them, especially if they’re already sick. But how about the healthy ones?
Note two things as well on this account — these premiums are for non-smokers (smoker premiums are grossly surcharged with reports being 2x the above) and they do not account for anyone other than one person. If you are a single parent with kids (rather common) the premium on average is $610.23/month or about $7,300, and if you’re a couple it’s $647.86 (again, $7,774 annually.)
Now let’s look at the government’s own claims. First, the CPI index claims that health insurance is 0.656% of the family budget. What percentage of couples make $1.185 million a year? Why do I ask? Because that’s the alleged median income for a couple if you believe the government’s CPI numbers.
Yeah, right.
Next, while some people will get “tax credits” to offset these costs all that does is lard it up on the federal budget, because someone else has to pay that bill. In other words this is the true cost that will come out of your hide one way or another — either directly by paying, indirectly by taxation, or indirectly by destruction of your purchasing power.
Next, note that this is the “50 year old” premium but you have to be 65 to qualify for Medicare. The price will rise each year after 50 that you happen to be and there are already reports that if you’re 59 these premiums are understated by half. How many couples who are 59 and cannot qualify for Medicare yet have not $7,700 a year of extra money laying around but north of $15,000?
That’s what I thought.
Full Analysis at Market Ticker
The whole idea is predicated on the notion that you can indefinitely take from Peter to pay Paul.
But eventually Peter is going to run out of money and not be able to foot the bill, or he’ll simply refuse to buy into the scheme altogether.
Like everything else government, the new health care initiative will be a complete and utter failure.
The basic principles of mathematics will prove this to be true in coming months and years.
As Denninger notes, America will be “strangled and expire economically as a direct consequence” of the marriage of the State and Health Care industry.
The die has been cast.
Beware of forced vaccinations, quarantines if there's a dread disease, being deemed in need of mental or other counseling. I really don't think this is an exaggeration.
That's my pool entry.
When this current nefarious scheme totally collapses before Christmas, the panicked millions who have lost their insurance or are now priced out of victims will demand the government "fix it!". The Demoncrats will be tickled to and the Gutless Old Party will be too scared of the din to do anything but go along.
Riding to the rescue, all these victims will be dumped in one of these programs and a sliding scale set up for premiums, based on income (thanks, IRS!). Before long, everyone else will follow because the insurance industry will be dead and gone.
Voila! Single Payer!!
In five years or so, even Cuban medicine will look good in comparison but it will be too late.
No one had the b***s to educate the Obamarxist. That's assuming his IQ is high enough to learn 8th grade math, and his ego is small enough to admit his ignorance.
But... the most likely scenario is that people like this have been and continue to run our country, as well as ObamarxistCare:
There was a team of Obama people speaking to Mr. C. (engineer, automotive experience of 40+ years, and Chairman of CAR). They were explaining to Mr. C. that the auto companies needed to make a car that was electric and liquid natural gas (LNG) with enough combined fuel to go 500 miles so we wouldn't "need" so many gas stations (a whole other topic).
They were quoting BTUs of LNG and battery life that they had looked up on some website.
Mr. C. explained that to do this you would need a TRUNK FULL of batteries and a LNG tank as big as the car to make that happen, and that there were problems related to the laws of physics that prevented them from...
The Obama person interrupted and said (and I am quoting here):
"These laws of physics? Whose rules are those? We need to change that."
(Some of the others wrote down the law so they could look it up later.)
"We have the congress and administration. We can repeal that law, amend it, or use an executive order to get rid of that problem. That's why we are here, to fix these sort of issues."
Mine is mid-2014.
May-July 2014.
It’s time to stop pushing the stupid meme that Alinsky is some kind of super hero genuis. He’s not.
What that commie traitor wrote is irrelevant - it’s not working.
And it’s also time to stop acting like a stupid French surrender monkey.
Your quote: “in 10 years or less we will be a third world nation at best.”
And finally, your Vichy French ultimate surrender statement: “And by then those with guns will be disarmed or dead.”
Screw that. Either buck up and start fighting or get lost.
that was great post #20
Why, thank you.
I certainly meant to capitalize ‘God’.
It was an observation. Was there something particularly enlightening?
yup,’the fail is by design to get single payer.
no surprise since he’s on tape advocating it.
And that only a discussion of the health care premiums eroding disposable income. If you actually need health care you will pay quite a bit in deductibles and co-pays before the insurance kicks in a dime.
It’s not fixable, and even if the rinos try to help the commies with ‘fixes’ it will not ‘work’.
Apparently millions of policies will end in 2014 because they are not compliant with ACA. Those people will mostly have to join Obamacare, those enrollment numbers will be highly touted in the press.
when will somebody post the
real prices (and the subsidies).
surely by now, enough people
have gotten thru and purchased
insurance
Doesn't matter to the libs, they don't work. They get their phones, food, child care and housing subsidized by the government now so they don't have to. They need to shore up health care as a guaranteed benefit now so they can be sure they'll never have to work. Leaves for time for drinking, smoking pot, screwing and watching the flat screen HDTV.
We already have 82 million on Medicaid, 49 million on Medicare. Obamacare is adding untold more to Medicaid. If not for Roberts at least striking down making it mandatory, the Medicaid expansion would be going on in twice as many states as it is now. But we're halfway to single payer already anyway. How is it that 30% of the country under age 65 (total Medicaid recipients) supposedly can't now afford to pay anything for their health care?
Wait until those young lefties actually have a child instead of aborting them. That $12,500 deductible should be an invasive dose of reality.
The rate table for just one company’s plans (bronze through gold) in my state is 12 pages long.
You might want to narrow down the request a little.
I think it will collapse before January 1, 2014. By the time the current open enrollment period ends in mid November and millions of employees get a load of their new plans, TSWHTF.
with one company, and one location.
how many combinations are there?
gender?, age group(5,6,?), smokes.y.n, family, ...
does not seem like an impossible task
Did you see that stat saying that 1 percent of the population spends 21 percent of the money used on health care?
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