Obamacare has been collapsing for a while. Actually pretty much since it started. A bunch of the state co-ops are dead. More are readying themselves for the grave. And now even the crony partners are starting to abandon the scheme. Indeed repeal may not even be necessary. Ironically the Obamacare experiment may long stand as a testament to one of pro-market economist FA Hayek’s key insights, The Pretense of Knowledge.
The planners can’t out plan the market. (But they always think they can.) One can not just wish away supply and demand. One can stave it off for a bit by fiat, but the inevitable correction in the face of such control is just made that much worse.
As we’ve stated before, something must be done about the roughly 7% of the population which falls outside of a sustainable traditional insurance marketplace for whatever reason. Some super sharp market economist would be wise to figure out some kind of a solution for these folks. There might be a Nobel Prize in there. (But then again maybe not.)
At the same time, UnitedHealth’s concerns may be a “bellwether” that “clearly indicates the commercial environment is less hospitable than it has been in the past,” he said.
Representative Darrell Issa, a California Republican, predicted that if UnitedHealth “pulls out, the Blues won’t be far behind,” referring to the Blue Cross Blue Shield plans that collectively cover more than 105 million Americans.
Were those plans to threaten an exit from the Affordable Care Act, “that would make me very, very nervous,” Timothy S. Jost, a Washington and Lee University professor of health-care law, said in an interview.