ObamaCare is entering its dreaded ‘death spiral’

Posted by on Oct 20, 2015 at 7:55 am

ObamaCare is heading toward a death spiral.

The Obama administration is having trouble selling insurance plans to healthy people. That’s a big problem: When the young and healthy don’t enroll, premiums have to be hiked to cover the costs of older, sicker people, discouraging even more young people from signing up.

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.

Bad enough that healthy people aren’t buying. Worse is that the administration is spending billions of your tax dollars covering up the problem, paying insurers to keep offering the plans, even though they’re losing their shirts. But facts are facts — and there’s no hiding these.

Health and Human Services Secretary Sylvia Burwell predicts ObamaCare enrollment will inch up by 1 million or so, to 10 million people — half what the CBO forecasted. Open enrollment for the coming year, which begins Nov. 1, “is going to be a challenge,” she said.

David Wichmann, UnitedHealth Group’s president, announced higher premiums last week because enrollees will “require more medical services than original expectations.”

Many states (though not New York) are looking at premium hikes of 30 percent or more, according to a new Robert Wood Johnson/Urban Institute analysis. The Heritage Foundation estimates that insurers lost 12 percent selling ACA plans in 2014, with more losses this year.

Full story.

3 Responses to “ObamaCare is entering its dreaded ‘death spiral’”

  1. Bob on 20/20/15 at 10:36 am

    Never fear. The Washington establishment will sustain the program and the prols will continue to believe the Marxist doctrine. America will never return. There is no will. The American spirit is dead.

  2. Bobo on 20/20/15 at 2:01 pm

    Death spiral…if only. Most of gov’t is now just a collection of commies/socialists and enablers – they will never let this f***ing thing die. After all, it’s other people’s money, and, as any good gov’t parasite knows, you never, ever run out of other people’s money.

    I do get a kick out of the fact that most of the people I know that supported this mess and voted for the malignant imbecile in the White House, twice, are getting hit hard on the insurance premiums. They don’t seem to enjoy their “affordable” healthcare at all for some reason.