I’ve posted this mostly for curiosity. There isn’t anything in here specifically relevant to the class this semester, but generally speaking the financing of healthcare is a macroeconomic issue (and students are curious about it).
Whether you’re pro or con, the healthcare market was not really ever well:
… These [Obamacare] structures haven't proven to be any more successful that in the last iteration in the late 1990s. But time will tell and I really hope we can get it right this time and finally find a viable way to get away from fee-for-service reimbursement.
The problem continues to be that people who don’t need healthcare don’t buy insurance for healthcare (as Homer would say “Doh!”):
I worry more about the really poor take-up rates for the healthy people who have not signed up in the 200% of federal poverty level and above brackets than I worry about the percentage of the young who have signed up. Way too much emphasis is put on this age 18-to-35 statistic. Yes, they are more often healthy but under Obamacare the youngest pay one-third the premium of the oldest. We really need the healthy to sign up in much bigger numbers, that have so far been holding out, more than we need the young.
There’s a part missing in that above quote: what Obamacare needs is the older people (who are charged more) but are still healthy (and therefore don’t cost as much) to pay up, so that they can cover the costs of the unhealthy people. But we all know why they don’t do that:
Here is one such comment I got last week: "I have had more people this year weeping and overwhelmed at the astronomical premiums, even WITH subsidies and cost sharing. Many say, 'But that's a mortgage payment."
Just as an FYI, the health insurance premiums SUU pays for my family of four already exceeds my mortgage payment.
The White House is part of the problem:
I have said for some time that the Obama administration by itself could fix much--but not all--of what is wrong with the Obamacare insurance business model if they would just get out of denial and get to work on some practical solutions.
… No one in the industry, including me, thinks Obamacare will be repealed. But it needs major repair.
Co-ops, one of the cornerstones of Obamacare, have been collapsing over the last year:
The co-ops proved what can happen when you don't get the list of these things right from the beginning.
… This is just a really bad business plan and they are undercapitalized.
Saying they are in trouble because Republicans cut their risk corridor payments is like saying a derelict boat sank because of a bad storm.
FWIW: the budget Congress passed over the break included wording (attributed to Senator Rubio) that denied increases in the size of that “risk corridor” (the risk corridor is the amount of money Congress allotted to cover the problems in the co-ops).
But, we may be stuck with it:
… Democrats can't admit Obamacare is broken and Republicans can't admit it won't be repealed.
Via Marginal Revolution.