Posted on 11/12/2013 5:19:08 PM PST by Vendome
So I am sitting here contemplating some business decisions and doing my forecasting for 2014. Suddenly it occurs to me the insurance companies must have done the same thing and expected a certain amount of customers and revenue relative to each spend.
Bit...here it comes....this forecasts are crap since ObamaCare® website doesn't make it easy to acquire a customer and in fact, it impedes utilization.
How are the presidents of these companies going to explain their churn and a funnel that operates more like a sieve ?
Not only the website is a mess, but so is any underlying guess about how many sign up, what it really costs each family and finally how it will all operate.
It will be like calling up the post office, the department of motor vehicles and Acorn, to remodel your house. In a hurry.
The exchange companies get bailed out by the taxpayers for three years. 100% of losses covered the first year, and 80% the second two years. Without those guarantees, no companies would have signed onto the exchanges.
What will happen and what they expected to happen are 2 different things. Obama and the Dems sold the insurers by promising huge revenue increases, as everyone would be forced to buy. This was the only way these companies would go along with the provision requiring them to cover pre-existing conditions.
We all see the reality - they’re getting hosed. The strong likelihood is that the sick will sign up and the healthy will opt for the penalty. Therefore the insurers will get all the expense they forecast, but only a fraction of the new revenue.
The other thing I’m surprised hasn’t been brought up yet is that this de-facto “tax increase” is the largest in history and, if operating as planned, would have be huge windfall to the Feds and States.
You see, all of those poor “uninsured” people weren’t going without health-care - they just lacked health insurance! They were not able to pay directly OR via insurance. The result is that we all get stuck with the bill, as our governments (Federal & State) USED TO pick up these costs.
Under Odramacare, working people like you and me will see much higher premiums on average, so that the formerly un-insured now have policies that WE pay for (the poor get “subsidies”). This means the Feds are taking what was a direct expense, funded through tax-receipts, and shifting it via the ACA mandates to the insurance companies (who get increased revenue through increased premiums).
So again the middle class and working class get the O-shaft - as our expenses will go up (premiums), but there will be no decrease in the tax-rates that one might expect, being as the expenses they would have normally incurred will be gone.
Classic un-funded mandate; making industry act as the tax-collectors for bloated governments and welfare state.
Said another way, we will now pay both the high taxes AND the increased premiums - just to make it “fair”.
Oh folks will pay for them. A few years down the road the fines will force folks to purchase insurance. And it still won’t be affordable. Don’t forget the IRS will charge interst on unpaid fines. So your fine tab will be ever increasing if you decide not to pay it. Evil law.
I read that Obama has added 19 additions after the vote.
“Mark my words—the insurance companies will not be gaining anything with this mess.”
I will indeed do that. The insurance companies will make out like bandits. Mark my (and Sarah Palin) words, the premium paying are the huge losers in this mess
“I don’t think”
You should have stopped right there
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