Health Insurers to lose $1 Trillion in Revenue if Supreme Court Says the People can’t become $1 Trillion Poorer

Posted by PITHOCRATES - May 19th, 2012

Week in Review

Oh no.  The health insurance companies will lose money if the Supreme Court rules that Obamacare is unconstitutional.  Those poor health insurance companies.  Here the government is trying to help the people they hate more than anyone else and the Supreme Court has to rain on their parade (see Obamacare repeal would cost insurers $1 trillion by Sarah Kliff posted 5/15/2012 on The Washington Post).

Next month, America’s health insurance plans may lose $1 trillion in revenue…

The figure comes from Bloomberg Government, where number crunchers have taken a look at what happens if the Supreme Court strikes down the Affordable Care Act and its expected expansion of health care coverage to 32 million Americans. They find that, should the Affordable Care Act be found unconstititional [sic], insurance companies will lose $1 trillion in revenue between 2013 and 2020…

The majority of that loss – $880 billion – would be from the 16 million Americans expected to purchase coverage on the individual market…

The Bloomberg Government study estimates that, of the $1 trillion in revenue, health plans would keep $174 billion.

Cost insurers are NOT going to lose $1 trillion in revenue if the Supreme Court rules Obamacare unconstitutional.  This is 2012.  The $1 trillion in revenue is projected between 2013 and 2020.  This revenue doesn’t exist.  And, therefore, can’t be lost.

This projected revenue will be from the individual mandate forcing people to buy health insurance.  So the insurance companies will be $1 trillion richer.  And the American people will be $1 trillion poorer.  This is perhaps the first time someone has felt sorry for the poor health insurance companies suffering at the hands of greedy consumers who are unwilling to buy their products.  So they applaud the poor health insurance companies projected sales as the government forces the American people to enrich the insurance companies.  And feel sad when the mean old Supreme Court says the government can’t force the American people to become poorer so the insurance companies can become richer.

Of course the insurance companies aren’t going to become richer under Obamacare.  They’ll never see that $174 billion in profits.  For insurance companies will be going out of business left and right.  Because Obamacare forces them to pay for preexisting conditions.  An ingenious plan to put the health insurance companies out of business. 

Currently the fine for not buying health insurance is pretty low.  Less than the cost of an insurance policy that covers everything but the kitchen sink.  As mandated by Obamacare.  From birth control to abortion to every kind of preventative screening there is.  Making these policies very, very expensive.  So people will choose to pay the less costly fine.  Until they get very, very sick.  Then they will buy health insurance.  And the insurer will have to pay for every bill that comes in for that preexisting condition.  Because Obamacare forces them to.  Forcing them to raise their premiums.

Of course when they do others will choose to pay the less costly fine instead of the more costly insurance policy.  They will drop their coverage.  Until they become very, very sick.  Meanwhile, the insurance companies will have to raise their premiums because fewer people are paying premiums.  And on and on this vicious cycle goes.  Until the insurance companies have only sick people with policies.  So they’ll spend more on health care bills than they will ever collect in premiums.  Until they go bankrupt.  As designed.  So they can expand Obamacare into a full-blown national health care system like they wanted all along. 

Like I said, ingenious.  As well as devious.

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