The Obama administration has been boasting of having 14 million people enrolled in Obamacare healthcare plans. It seems they are intentionally misleading the public to believe that the vast majority of enrollees were previously uninsured. They are using these numbers to try to convince critics that the Affordable Care Cat is a success.
However, the Obamacare numbers bantered around by the Obama administration are just as misleading and deceptive as those they put forth concerning unemployment. Several million enrollees were previously insured but had their policies cancelled by the Obamacare requirements. Yet several million others who had their existing policies cancelled never enrolled. Obama’s socialized healthcare program is not nearly as successful as they make it sound. There have been a number of reports lately that indicate many of the problems with Obamacare.
To add to that growing list of problems with Obamacare is a recent report by Doug Badger, a former Senior White House Advisor for President George W. Bush. Badger says that the Obama administration designed the Affordable Care Act so that the high premiums paid by millions of healthy young people would pay for the claims made by older and less healthy people.
After studying the latest enrollment figures, Badger said that Obamacare is not working the way it was hoped to work. He explains that on the surface, the figures look encouraging:
“Nearly 11.7 million people selected a plan this year, compared with just more than 8 million during the 2014 open season.”
But when he looked at exactly who is enrolling, he said it’s the reason to be concerned, because:
“[Enrollment] has been dominated by those with the lowest incomes. [The Department of Health and Human Services] reports that 83 percent of people who have selected plans have incomes between 100 percent ($11,770) and 250 percent ($29,425) of the federal poverty level (FPL).”
“[Meanwhile, Medicaid] has grown by nearly 20 percent since Obamacare was launched, swelling its ranks to 70 million. Roughly 22 percent of the U.S. population is now on Medicaid, despite the refusal of 22 states to expand their programs.”
Badger said the reason for this trend is that Obamacare was marketed to attract the poorer people but did not attract the attention of the younger healthier people with higher incomes. Consequently fewer people that can afford to pay for exchange provided healthcare coverage have signed up for plans. Badger commented about it saying:
“As premiums rise, the value of insurance coverage falls.”
Then he goes on to describe Obamacare as:
“An income transfer program in which middle income people finance Medicaid expansions and health insurance subsidies for the poor and near-poor.”
He also stated that the reason most uninsured middle-class Americans have opted not to purchase coverage is:
“Because the coverage isn’t worth the price, [because] their taxes are subsidizing coverage for others.”
“[It] seems unfair to hit them with an additional tax for refusing to buy insurance for themselves, especially when that coverage is less valuable than the coverage they are subsidizing for others.”
“Obamacare’s ‘pay more, get less’ regime has made remaining uninsured an economically rational decision even for millions of people who are eligible for subsidies. [This may explain] why the government is underachieving in its efforts to persuade millions of people to buy a product they just don’t think is worth the price.”
The bottom line is that Obamacare is not working the way they thought it would and the money is not coming in to pay for the program. Without additional revenue, the Affordable Care Act is having severe financial problems. That’s why premiums are expected to rise at a faster rate than what we were told. It also means that Democrats will need to find a way to raise more tax revenue to pay for their failing socialist healthcare fiasco.