Posted on 11/01/2013 5:47:10 AM PDT by Oldeconomybuyer
The government will have to fix HealthCare.gov to hold up the new marketplace, but there are other elements in the law that will prevent the "death spiral" from kicking in. The system of subsidies for consumers on the market, along with mechanisms like "reinsurance" and "risk corridors" designed to stabilize the market, should keep premiums from spiraling out of control.
Along with subsidies, there are other mechanisms built into the Affordable Care Act designed to prop up the new individual health insurance market. For instance, the "reinsurance" program taxes all insurance plans -- including employer-provided insurance -- and reimburses the individual market for its high-risk enrollees. The reinsurance program is pumping $10 billion into the marketplace.
Additionally, insurers can rely on "risk corridors," which enable the government to share in the risks and gains of the marketplace. If the cost of insuring people is lower than expected, insurers pay into a pool, and if it's higher than expected, they can draw from that pool.
"The expectation is that it'd even out, but it is possible if a much sicker group of people enrolled, there could be a cost to taxpayers," Levitt said.
Rather than raising premiums, insurers could simply abandon a weak marketplace. Levitt, however, said it's unlikely that the market would collapse that quickly.
(Excerpt) Read more at cbsnews.com ...
Unlikely, assured, what’s the difference?
Unless no payers sign up, and only hordes of Takers do.
Wishful thinking.
“The system of subsidies for consumers on the market, along with mechanisms like “reinsurance” and “risk corridors” designed to stabilize the market, should keep premiums from spiraling out of control. “
These may indeed stabilize the visible portion of the financial outlay; people to insurance companies. But it makes the tax burden WAY more than anticipated; government to insurance companies. In effect, there is no “market” at all in this equation. It is in effect a single payer system with “private” insurance companies acting as the government’s shill.
They want all power and all our money.
Wishful thinking. The higher premiums with ridiculous deductibles are already materializing.
keep premiums from spiraling out of control.
Idiot!
They started right off the bat as 100-200% increases. ObamaCare IS a death spiral.
/johnny
Well, there clearly is no death spiral at least thru February.
THat’s because there is NO debt ceiling. It is unlikely as well if the regime/Boehner/McConnell can continue the govt WITHOUT a debt ceiling.
What the azzes don’t realize is that millions of real people’s health care is being destroyed, so their lies and spin is useless.
Since CBS believes that there really is a free lunch, I bet they’ll start letting companies have free commercials.
I’m not convinced that there will even be Obamacare in a week. It is that unworkable.
What the azzes don’t realize is that millions of real people’s health care is being destroyed, so their lies and spin are useless.
Not only are taxpayers subsidizing individuals, we will also be covering any losses to the insurance companies when no one signs up for this monstrosity.
Very few mention that doctors and hospitals seem to want no part of it. Think actual delivery of health care.
This is a major problem of epic proportions.
It would have been MUCH SIMPLER to subsidize doctors to treat the uninsured! Let doctors write off free care against income.
Of course this is not about the uninsured it is about government control.
And who pays for the subsidies? This is why the insurance companies supported Obamacare. Premiums can continue to go up fueled by increased subsidies. Obamacare is another entitlement and like SS and Medicare, will cost us trillions in unfunded liabilities. Healthcare costs are going up faster than inflation.
What CBS is saying is that the designers of this turd knew beforehand the problems they would face and designed it so it would be almost impossible to get rid of.
No matter what the cost is Government is going to take away your insurance and put you on Single Payer. What the hell your money is worthless anyway. They can just print more.
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