The system runs on such narrow margins that even a 5% increase in Medicaid will be rapidly fatal.
And even before that, any responsible insurance company board will shut down their about to be company-destroying health insurance subsidiary.
These shell "health insurers" won't last 60 days.
“The system runs on such narrow margins that even a 5% increase in Medicaid will be rapidly fatal.”
Physicians and medical groups can reject medicare patients can they not? Also, to what economic data are you referring to conclude that a 5% increase in Medicaid patients would be rapidly fatal? We have had bigger jumps than that in the recent past without practice fatalities.
I am not saying that this isn’t a backdoor to single payer healthcare or “medicare for all” by crashing the private industry, which I actually think Obama wants to do, I am just trying to figure out how he’s gonna do it.
There will certainly be new regulations in place such as no lifetime caps on insurance and no denial of pre-existing conditions but I am still trying to understand how these bills are going to hurt the private insurance market by forcing 30 million new customers to buy from them.