The answer to why Obamacare will never work as advertised is simple: It is a giant Ponzi scheme, just like Social Security.
The concept is simple:
a) Force everyone to participate
b) Set policy rates based on an assumption that the "invincibles", those younger folks who are forced to buy a policy but rarely use it are a high enough percentage of the total subscribers to cover the cost of those most in need of medical care, i.e., the elderly.
Sounds great right? The problem is that the US population is rapidly aging. According to the US Census Bureau:
"In the 1990s, Baby Boomers are in their economically productive
years and represent nearly one-third of the U.S. population. When the Baby-Boom generation begins turning age 65 in 2011, there will be a rapid growth in the number of persons 65 and over. Just as this generation had an impact on the educational system and the labor market, this large cohort will strain services and programs required by an elderly population. By 2020, the Baby Boomers will be pre- and early-retirement ages (55 to 64 years) and the young old ages (65 to 74 years). Between 1990 and 2020, the population age 65 to 74 would grow 74 percent under middle series projections, while the population under age 65 would increase only 24 percent."
So, over time and for the foreseeable future, less and less Americans will need to pay the health care costs for more and more American's. Sound familiar? Same thing as Social Security, and we all know how well that is working.
No lower cost, no reduction in the rate of healthcare cost increase, just more of a burden on future generations and higher national debt when the insurance companies, who are guaranteed a certain profit level have to be paid off by us, the taxpayers. Oh, and probably 3000 to 6000 new government jobs to administer this nightmare.
:scratchhead:
The concept is simple:
a) Force everyone to participate
b) Set policy rates based on an assumption that the "invincibles", those younger folks who are forced to buy a policy but rarely use it are a high enough percentage of the total subscribers to cover the cost of those most in need of medical care, i.e., the elderly.
Sounds great right? The problem is that the US population is rapidly aging. According to the US Census Bureau:
"In the 1990s, Baby Boomers are in their economically productive
years and represent nearly one-third of the U.S. population. When the Baby-Boom generation begins turning age 65 in 2011, there will be a rapid growth in the number of persons 65 and over. Just as this generation had an impact on the educational system and the labor market, this large cohort will strain services and programs required by an elderly population. By 2020, the Baby Boomers will be pre- and early-retirement ages (55 to 64 years) and the young old ages (65 to 74 years). Between 1990 and 2020, the population age 65 to 74 would grow 74 percent under middle series projections, while the population under age 65 would increase only 24 percent."
So, over time and for the foreseeable future, less and less Americans will need to pay the health care costs for more and more American's. Sound familiar? Same thing as Social Security, and we all know how well that is working.
No lower cost, no reduction in the rate of healthcare cost increase, just more of a burden on future generations and higher national debt when the insurance companies, who are guaranteed a certain profit level have to be paid off by us, the taxpayers. Oh, and probably 3000 to 6000 new government jobs to administer this nightmare.
:scratchhead:
Put the internet to work for you.
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