This month the Health and Human Services Department has dramatically discounted its internal estimate of how many people will join Obamacare in 2016.
There are now 9.1 million enrollees. The CBO and the medicare actuary and independent analysts of the Rand Corp. stated that participation would surge to 20 million in 2016 but now they have readjusted it to between 9.4 and 11.4 million. Recruitment is roughly 70 percent of projections for 2015. The fact is that for every person allowed to join two didn’t for various reasons. Those who are between the ages of 18 and 34 are not signing up because they are in good health and find that it is easier to pay a small fine and not carry insurance. They can then use their money to pay down debt among other things. Obamacare will collapse without this group paying the high premiums.
For Obamacare to work, 80 percent of premiums would be used for health claims and the remaining 20 percent for overhead. The first year of full implementation in 2014 found that 90 to 99 percent was used to pay claims in the state of Massachusetts. The claims were taking 121 percent of premiums.
Obamacare will almost inevitably be reopened in 2017. In this era when Washington “rewards failure,” Obama’s crowning achievement (without one Republican vote) was a bill which the majority of Americans didn’t want and which has now become a complete failure.
Garland J. Horn, Granite City