Posted on 11/07/2013 1:38:31 PM PST by mdittmar
Insurance cancellations are fueling a political backlash against President Barack Obama and Democrats supporting his health care overhaul, but they may be a silver lining for the law itself.
It's Economics 101, a little-noticed consequence of a controversial policy decision. And there are winners and losers.
Millions of people who currently buy their own health insurance coverage are losing it next year because their plans don't meet requirements of the health care law. Experts say the resulting shift of those people into the new health insurance markets under Obama's law would bring in customers already known to insurers, reducing the overall financial risks for each state's insurance pool.
That's painful for those who end up paying higher premiums for upgraded policies. But it could save money for the taxpayers who are subsidizing the new coverage.
"Already-insured people who do roll over will improve the risk pool, not hurt it," said David Axene, a California-based actuarial consultant for health plans, hospitals, government programs and employers.
Compared to the uninsured, people with coverage are less likely to have a pent-up need for medical services, he explained. They may have already had that knee replacement instead of hobbling around on a cane. They're also more likely to have seen a doctor regularly.
(Excerpt) Read more at abcnews.go.com ...
This is the “Broken Window” fallacy.
“Just like breaking windows on buildings as a way to increase spending on replacing the glass and thus “good for the economy.” It isn’t.
Spin, spin, spin.
The democrats are all for (controlled) free markets now.
But we could never have a free market across state lines, because that wouldn’t lead to single payer.
Who exactly is this magical, altruistic individual that will be taking care of everybody’s health costs??
How is a "new" market going to be able to do any better considering they still have to line up to the federal mandates?
Not so fast, ABC ObamaBots. Those dumped from their private policies can be smart and refuse to sign up until they are sick. The penalty for doing so would be much cheaper than their sky-high premiums.....and they can’t be turned down for a pre-exiting condition.
Bingo!!! We have two winners. The broken window fallacy strikes again. It’s the only economic system liberals know.
What about people losing their lifetime doctors? Oh well!
and just like buying bottles of Turd Polish really doesn’t make anything shinier
You are right. If and when my health insurance is cancelled I will put the monthly premium money into the bank and use it to pay cash to doctors. If something serious comes up I will buy insurance on the way to the hospital. The problem is, millions of people will be doing the same thing and there won’t be any insurance companies left.
But the alleged purpose of all of this was to insure the uninsured.
Solzhenitsyn nailed it decades ago. Collectivism is a model which does not take into account human behavior.
People respond in a way that works best for them, and will only take a mandated option if they are coerced or have no other option.
Yep!
They speak of this monstrosity as if it's a living thing.
Vell, then, ve must offer them no other opshuns, eh?
That was exposed really early on, even before it passed, that of the “43 million uninsured”, only about 10 million more would get covered.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.