Obamacare is entering its dreaded ‘death spiral’ (Watch for an Obamacare “bailout”)

This guy and his friends never actually signed up.
This guy and his friends never actually signed up. (They couldn’t afford to.)

In another life I was an insurance underwriter. I used to look at risks and then make sure my company had the right prices for the risks my company was insuring. I have never understood how Obamacare was supposed to “work.” It makes no sense in terms of insurance. The risks are too vast. The goals far too ambitious. It’s basically a giant (increasingly failed) experiment paid for by taxpayers designed (poorly) to address problems in the healthcare system which were originally created by government intervention in healthcare. Think about that. Healthcare was screwed up in this country because of the government and its pre-Obamacare mandates and pricing, not the market which generally encourages efficiency and quality.

Obamacare was created in a hurry and the shoddiness of the program has shown itself at nearly every turn. Of course the one bit Obamacare got “right” was the steady stream of new revenue (billions and billions of taxpayer dollars) which flowed and flows to the big health insurance companies. Of course if those streams dry up for the corporations Obamacare won’t have to be repealed. It will just wither and die.

But watch for an Obamacare “bailout.”

(From The New York Post)

Last Thursday, the administration predicted enrollment for 2016 will be less than half what the Congressional Budget Office predicted in March.

Despite subsidies to help with premiums and out-of-pocket costs, most of the uninsured who are eligible for ObamaCare are saying “no thanks.” Only one in seven is expected to sign up. That’s despite a hefty increase in the financial penalty next year for not having insurance.

The president sees the writing on the wall. You won’t be seeing the customary nationwide TV campaign to encourage sign-ups, as there were in previous years. Remember the young guy in plaid pajamas — “Pajama Boy,” to conservatives — well, he won’t be back this winter.

Click here for the article.