Saturday, August 25, 2012

My take on Obamacare so far

I do like the restriction against denial because of pre-existing conditions. And preventative care saves billions over time. But the jury is still out on Obamacare.
For one thing it does little to curb price inflation (my costs for prescription went UP this year, for instance, maybe to pay for the elimination of the donut hole). But it does curb innovation and make becoming a doctor a losing proposition. We can expect a dearth of doctors, which dearth will be made up by people with lesser education and experience. We will quickly lose our position as leader in the creation of new medical devices and procedures.

The Dems in their infinite wisdom failed (refused?) to institute commonsense details such as portability and erasing the artificial state-line barriers to purchasing insurance. Both would have gone a long way towards slowing the rise in health care costs.

Then, of course, there is the "cliff" facing us in 2014. The "good" parts of Obamacare were front-loaded, but all too soon the "bad" parts will show up. The administration is busily preventing parts of Obamacare from becoming operations, and exempting political supporters selectively from others. Why not just change the law?

Absent some pretty hefty changes to Obamacare in the next year or two, we're in for a tsunami of so far undetermined proportions.


  1. Dear Mr. Fero,
    Your description and analysis of Obamacare is pretty good but I wish to point out to you a problem with the provision that you like which is no exclusions for preexisting conditions. Without this restriction the insurance industry would have quickly gone bankrupt. People would only buy insurance after they became sick or had an injury. There would be no reason to buy insurance before you needed it. The government would be faced with the same problem because the only way to avoid this problem of "adverse selection" is to give every one "free" insurance. There is no possible way to force everyone to buy insurance. Consequently,the price inflation that you are worried about would bankrupt our country. It is really true that there is "NO FREE LUNCH"! I guess that is what you meant by the coming tsunami.

    1. The Freelance Thinker is a retired insurance executive. His observations should be taken seriously. I believe this problem is why the ACA strives to dragoon everyone into obtaining insurance, or paying a penalty for not doing so. The money thus gained putatively covers the losses the insurance companies would otherwise sustain.

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