Week in Review
Let’s imagine you buy your groceries a different way. Instead of going to the store and picking things off of the shelves and paying for them at checkout imagine this. You don’t pay the store. A third party does. Like it does for everyone else that shops at this store. Sounds great, doesn’t it? Let’s say people pool their money together for purchasing power. And have this third party take that pooled money and use it to get better pricing. Because of the large amounts they will be paying for.
So everyone pays in a monthly amount to their third-party purchaser. Then goes to the store and takes what they want. And at checkout they just sign an invoice to acknowledge they took this stuff. And the store will submit the bill to the third-party purchaser. Of course, there would have to be some rules. Because if everyone pays a flat amount each month you can’t have someone picking up steaks every day when you’re buying hamburger for your kids. So there are limits to what you can buy. Requiring the third party to review every submitted invoice. Requiring a very large staff to review every grocery store purchase to approve and disapprove line items on each and every invoice for payment. To resolve billing and payment errors. And to bill shoppers for any unapproved purchases they made. Even if they didn’t understand that these items weren’t covered.
So, included with that monthly payment there must be an overhead fee. To pay for all those people reviewing those invoices. Those who bill shoppers for unapproved items. Those who pay for the approved purchases. And those who process payments from shoppers. Still, things slip through the cracks. People are getting unapproved purchases through the system. Grocery prices rise. The overhead costs at the third party grow due to new costly regulations. Etc. Such that on occasion the total amount of cash out at the third party exceeds the total of cash in. Requiring them to raise the monthly amount everyone pays.
Sounds a bit more complicated than just going to the store and paying for what you want out of pocket. And more costly in the long run. But if someone else pays the third party for those monthly fees it’s a whole different story. Say as a benefit at work. Because without you having to pay anything it’s just free groceries. At least, to you. And you will demand that your employer pays for more stuff so it’s free to you. Even though it’s not. Because the rising cost of third party grocery purchases will cost your employer. Which will limit your pay. And other benefits. Because in the real world nothing is free. Even if people think that a lot of stuff is free. Or should be free. Like health care (see Nearly 7 in 10 Americans say health plans should cover birth control by Karen Kaplan posted 4/22/2014 on the Los Angeles Times).
Among the various provisions of the Affordable Care Act, few are as controversial as the one requiring health insurance providers to include coverage for contraception. A new survey finds that support for this rule is widespread, with 69% of Americans in favor of the mandate…
Women, African Americans, Latinos and parents living with children under the age of 18 had higher levels of support for mandatory contraception coverage than people in other demographic groups, the survey found…
— 85% of those surveyed supported mandatory coverage for mammograms and colonoscopies.
— 84% supported mandatory coverage for recommended vaccines.
— 82% were in favor of mandatory coverage for diabetes and cholesterol screening tests.
— 77% backed the provision on mandatory coverage for mental health care.
— 75% supported mandatory coverage of dental care, including routine cleanings.
There’s a reason why the United States is a republic and not a democracy. For the Founding Fathers feared a democracy. And wanted responsible people between the people and the treasury. For once people understood they could vote themselves the treasury they would. And things like this would happen. Mob rule. Where the mob demands more and more free stuff while fewer and fewer people pay for that ‘free’ stuff. And people in government anxious to win elections will keep giving the people more ‘free’ stuff that others have to pay for. Until one day you end up with the health care system we have in the United States. All because other people were paying for routine costs people could expect and budget for. Things that if they paid out of pocket for would cost less in the long run. Which would keep insurance what it was supposed to be. Insurance. And not turn it into a massive cost transfer scheme that only allowed the price of health care to soar.
Tags: Affordable Care Act, benefit, bill, contraception, democracy, Founding Fathers, free stuff, health insurance, insurance, invoice, Mob rule, overhead, payment, prices, routine costs, third party
Week in Review
Currently there are no market forces in health care. Which is why health care costs are so high. When buyers and sellers meet they always agree on a price that makes them both feel like winners. Just watch an episode of one of those pawn shop shows. The seller wants a higher price. The buyer wants to pay a lower price. As they move towards each other they arrive at a price that makes them both happy. The seller gets an amount of money he values more than the thing he’s selling. And the buyer is getting something he values more than the money he’s paying for it. Making them both feel like winners.
It’s not like this in health care. Because there is a third party between the buyer and seller. Either an insurance company. Or the government. Just like there is a third party between networks’ programming content and the consumer. The cable/satellite/phone company (see Why Your Cable Bill Keeps Going Up by Evan Weiner posted 4/12/2014 on The Daily Beast).
The television networks and the television carriers, whether it’s through cable, satellite or phone lines, carriers seeming are always fighting these days over the cost of programming and what rights’ fees should be. The rights’ fee is what a television carrier pays for a networks programming. The carrier then passes that cost along to consumers and tacks on an additional fee because they too feel the need to be compensated for bringing the program into a home.
The injured party is the subscribers who have little course to affect the talks unless they decide to drop their provider for another, and there is no guarantee switching to another provider will end TV blackouts…
Thanks to the 1984 Cable TV Act, cable subscribers have really no say in what they want for their needs. The cable carrier was allowed to establish tiers of services. The consumer could take a local, basic tier alone or basic and basic extended but would have no choice in what they wanted to buy and were forced to take whatever the multiple system operative wants to give them or they opt out of having cable TV. The same apparently holds true for satellite TV and the phone companies.
Cable/satellite/telephone television is like Obamacare. As consumers can’t keep the programming they liked and wanted to keep. As it is for Obamacare. Where people who had health insurance they liked and wanted to keep could not keep it. Instead, a third party, the government, forced them to buy a tier of health insurance they did not want. Only they do not have the option to opt out of Obamacare. Because buying health insurance is mandatory. Unlike cable/satellite/telephone television. For as much as we may hate our cable/satellite/telephone companies at least we don’t have to buy from them under penalty of law.
Tags: buyer, cable, carriers, consumer, Health Care, health insurance, insurance, networks, Obamacare, programming, rights’ fees, satellite, seller, subscriber, television, third party
Week in Review
The American left loves Cuba. A communist/socialist regime just a short boat ride from Florida. Where they put people before profits. And the left likes people. Just as much as they hate profits. And best of all Cuba has a national health care system. American film maker and darling of the left Michael Moore even made a movie about how great that health care system is. Sicko. Which showed how there are no health insurance companies in Cuba. No. Just a government that loves its people. A large number of who for some reason risk their lives to float their way to Florida. To escape that beautiful paradise Moore rhapsodizes about but never chooses to live in. Which probably has something to do with this (see Cuba slashes more than 100,000 health care jobs by The Associated Press posted 4/7/2014 on the Star-Telegram).
Cuban authorities say they have eliminated more than 100,000 jobs in health care, considered one of the pillars of the 1959 revolution.
The cuts come as President Raul Castro tries to streamline government as part of a broader economic reform package.
The weekly labor newspaper Trabajadores said Monday that 109,000 health care positions have been cut…
Cuba’s health care sector is entirely run by the state. Authorities have said that like other areas of the economy it is plagued by inefficiency, redundancies and bloated payrolls.
This is what Michael Moore and others on the left want for America. A health care system plagued by inefficiency, redundancies and bloated payrolls. Which, of course, consumes so many of the limited health care resources that there is little left for patients. This is national health care. This is a government bureaucracy doing what it does best. Incompetence and corruption. And the left is fine with this as long as they get their hands on those health care dollars. So they can create a vast, inefficient bureaucracy that is full of high-paying jobs to consume those health care dollars. Allowing anyone working for the national health care service to get rich. Just like those health insurance companies the left so hates. Only without being able to do what the private health insurance companies have been able to do. Create the world’s best health care system.
For the American people aren’t risking their lives to float to Cuba to get that health insurance-free national health care. At least, not yet. But with further economic reform President Castro may end up one day with a privatized health care system as the Americans move in the other direction. Which could very well create a health tourism paradise in Cuba after all. For Americans wishing to escape what President Obama and the Democrats are doing to the health care system they liked and wanted to keep.
Tags: American Left, bloated payrolls, bureaucracy, Castro, Communist, Cuba, economic reform, health insurance, inefficiency, Michael Moore, National health care, President Raul Castro, Raul Castro, redundancies, socialist
Week in Review
The big question in the Obamacare signups recently released by the Obama administration is this. How many people have actually sent a payment into their insurance company? For signing up for health insurance doesn’t mean you have health insurance. You have to pay for it first. With ‘first’ being key. As anyone who has paid a health insurance premium knows. You pay for next month’s health insurance this month. That is, it’s cash before delivery. As the insurance companies need the cash before they can pay any benefits. This is the way all insurance has worked since the dawn of insurance. First money goes into an insurance pool. Then said insurance pool pays insurance claims. The money must come first. There’s just no other way for it to work.
So, is the money coming first with Obamacare? As it turns out, the majority of it is. At least, according to a leading federation of Blue Cross and Blue Shield health plans (see Blue Cross group sees Obamacare premium payments at 80-85 percent by David Morgan posted 4/2/2014 on Reuters).
A leading federation of Blue Cross and Blue Shield health plans said on Wednesday that it is receiving premium payments from 80 to 85 percent of its new Obamacare health insurance customers.
The estimate, released by the Chicago-based Blue Cross Blue Shield Association, reflects enrollment activity among 35 Blue Cross Blue Shield plans in 47 of the 50 states, including plans sold by WellPoint Inc, from October 1 through February 1…
If the Blue Cross Blue Shield payment rates held true for enrollment across the board, between 5.7 million and 6 million of the 7.1 million would actually be enrolled in coverage.
So that means the Obama administration is overstating the enrollment numbers from 18.3% to 24.6%. And between 1.1 million and 1.4 million haven’t paid for the Obamacare they signed up for. Of course, that’s assuming that the 7.1 million were all new Obamacare enrollees into private health insurance plans. And not those who signed up for Medicaid who will never write a check for their coverage. Which will not help the insurance companies pay for the expanded benefits mandated by Obamacare.
So the Obama administration’s numbers are suspect to say the least. As is the continued existence of the private insurers. For if they don’t get 7+ million signing up for Obamacare (with a heavy concentration of the young and healthy who will file few claims) the cost of caring for the old and sick will bankrupt them. Of course if this was the plan all along the Obama administration could at least claim something in Obamacare was working according to plan.
Tags: Blue Cross, Blue Cross and Blue Shield, claims, health insurance, insurance, insurance pool, Obama administration, Obamacare, premium
Week in Review
Some see amnesty as a Democrat voter registration drive. Because people will remember who helped them become legal citizens. The Democrats. And will vote Democrat. Some have also said the Affordable Care Act is another Democrat voter registration drive. As Obamacare gave enormous sums of money to people running the insurance exchanges. To set up and maintain those exchanges. And to do something with all of that data they collected. Such as making sure these people signing up for these ‘Democrat’ benefits (the Affordable Care Act was passed along purely partisan lines) register to vote (see California to Send Voter Registration Cards to Obamacare Applicants by McClatchy News posted 3/25/2014 on Governing).
Heading off a lawsuit over compliance with a federal voting rights law, California officials have agreed to help millions of state residents register to vote.
Under a deal announced Monday by several voting-rights groups, the state will send voter registration cards to nearly 3.8 million Californians who have applied for health insurance under the Affordable Care Act…
The Department of Motor Vehicles and state offices that aid low-income mothers and the disabled are also among the agencies required to provide registration services…
A spokeswoman for the state health insurance exchange, Covered California, said the network had already taken “some interim steps,” including providing voter registration information and links to the secretary of State’s office on its website.
It’s probable that these people would not have voted in the next election had they not signed up for mandatory health insurance. But they did. And now are receiving voter registration information. From the good people who signed them up for their health insurance. No doubt Democrat supporters. Will they coach these people on how to vote as well as registering them to vote? Will someone explain to them that if they want more free benefits they need to vote Democrat? Perhaps.
It’s how you buy votes. You give people something. And keep giving them something as long as they keep voting for you. At least, that’s what they say at election time. “I fought to increase Social Security funding while the Republicans wanted to privatize it and make you risk your retirement in the stock market.” “I fought to increase Medicare spending while the Republicans wanted to privatize it and make it wither on a vine.” Etc. So is it improbable to think someone is telling them to be sure to vote Democrat so the Republicans can’t take away your health insurance? To use tax dollars for health care to register Democrat voters? Not really.
The Democrats ran an ad showing a Republican pushing Granny off a cliff in a wheelchair. ‘Rogue’ IRS agents took it upon themselves (or so the Obama administration claims) to harass Tea Party groups to prevent their fund raising, suppressing their free speech in the 2012 election. And, of course, the Democrats lied to the American people to pass the Affordable Care Act into law. If you like your health insurance and doctor, they said, you could keep your health insurance and doctor. So when it comes to getting what they want they appear to be rather pragmatic. Where the ends justify the means. No matter how unsavory, or legally questionable, those means are. Which would make the insurance exchanges the perfect voter registration mechanism. At least for one not bothered by the unsavory or legally questionable.
Tags: Affordable Care Act, California, Democrat, health insurance, insurance exchanges, Obamacare, voter registration, voter registration cards, voter-registration drive
Lawyers make a lot of Money without Contributing anything Tangible to Society
An attorney was sitting in his office late one night when Satan appeared before him. Satan said, “I have a proposition for you. You can win every case you try for the rest of your life. Your clients will adore you, your colleagues will stand in awe of you and you will make embarrassing sums of money. All I want in exchange is your soul, your wife’s soul, your children’s souls, the souls of your parents, grandparents, parents-in-law, the souls of all your friends and law partners.” The lawyer thought about this for a moment then asked, “So, what’s the catch?”
That’s funny, isn’t it? Lawyers. Ambulance chasers. The butt of so many jokes. Why? Well, some will say they deserve it. Because they do chase ambulances. And will pass out their business cards if they’re on a sinking ship. Because sinking ships are good for lawsuits. And lawyers love to sue. For they can make a lot of money without contributing anything tangible to society. All they do is get between two parties when large sums of money change hands. And put a portion of that money into their pockets. That’s how they earn their living. Taking money away from others. They’re parasites. Just to get rich. And the big tort lawyers (those who sue people and businesses) get really rich. Allowing them to live very privileged lives.
Take a class action lawsuit. Where they bring a lot of wronged people together to sue a large corporation. The old David and Goliath thing. A little person can never take on a big corporation. But a whole class of them can. When represented by a tort lawyer. Who liken themselves as heroes of the little guy. Taking the big corporation on to make them pay for all the horrible things they’ve done to their clients. But who do they really help? Let’s say they win a judgment from a big corporation of $250,000,000. That’s a lot of money. From that sum they take their cut. Let’s say 50%. Leaving $125 million for the people the corporation wronged. That’s a lot of money. So the people won, too, right? Not really. For there are a lot of people represented in these class actions. Let’s say 5 million in our example. So if you divide the $125 million by 5 million that comes to $25 per person. So, again, who did the lawyers really help? The lawyers. Which is why there are so many lawyer jokes.
In the Private Sector if you want to spend Half of your Life Retired you have to Pay for It
Lawyers vote Democrat. Because they like being privileged people. They don’t want the laws changing that allow them to get so rich when money exchanges hands. Which is why they donate heavily to the Democrat Party. And don’t donate to the Republicans. Who complain about the high costs of frivolous lawsuits to businesses in an overly litigious society. It’s so bad that a footnote in the financial statements of a corporation about a lawsuit is not that big of a deal. Why? Because so many corporations are sued that investors are more surprised to see one that isn’t being sued. This is why Republicans want tort reform. And pass ‘loser-pays’ into law. Like many other countries have. Where the loser in court pays for the attorney fees for the side that wins. Which would greatly cut down on frivolous lawsuits. And cut the costs businesses incur from these frivolous lawsuits that they pass on to their customers. So the lawyers donate to Democrats. To prevent any tort reform that would change the easy way lawyers have of getting rich.
It’s the world’s oldest profession. Screwing people for money. But lawyers aren’t the only ones seeking privilege. There are a lot of others, too. Interestingly, they, too, support the Democrat Party. Such as the United Autoworkers. They donate heavily to the Democrat Party to keep labor laws favorable to unions. To make it more difficult for their nonunion competition. And to use the power of government to force people to pay may for a union-made car. Allowing their union members to live better lives than those outside of the UAW. And when even that doesn’t allow General Motors to pay its bills when selling a record number of cars the UAW goes to government for a bailout of their woefully underfunded pension fund. So their union members can continue to have a more generous retirement at an earlier age than those outside of the UAW.
Teacher unions seek privilege, too. You hear a lot about how the teachers don’t earn that much. But then again, they don’t work that much. Getting 3 months off in the summer. So you can’t compare their wages to people who don’t get the 3 summer months off. But for teachers it’s not so much about the paycheck. It’s the benefits. Very generous health insurance coverage. And pensions. Which have gone the way of the dodo in the private sector. Because people are just living too long into retirement. When they first set up these pensions people were dying in their sixties. The actuaries never saw people living into their eighties as common. So in the private sector if you want to spend half of your life retired you have to pay for it. And you work as long as necessary to fund the retirement you want. The union pensions just can’t work these days as they once did. Which is why teacher unions like the United Autoworkers and lawyers support the Democrat Party. They want to keep their privileged lives.
The Wealth Transfers of the Welfare State give Democrats Money and Privilege
Of course privilege is nothing new to the Democrat Party. They have long stood for privilege. Even now. As the Democrats provide themselves all kinds of exceptions from the Affordable Care Act. For more expensive and lower quality health insurance is good for the masses. But not for the privileged elite. Or their special friends who support them so generously with campaign donations. Congress has had a history of exempting themselves from the laws they pass for us. It took the Republican winning of the House in the 1994 midterm elections to change that. The first Republican-controlled House since 1952 required Congress to be held to the same laws as the rest of us. A bitter pill for Democrats to swallow. For their feelings of privilege go way back.
The Democrat Party can trace its pedigree back to Thomas Jefferson’s Democratic-Republican Party. The party of the slave-owning planter elite. Who from day one fought for their privilege starting with the Three-Fifths Compromise. To give them a greater say in the new national government than their voting population allowed. The planter elite’s South turned into an Old World aristocracy. With great manors for the landed aristocracy. And vast lands worked by slaves. Very similar to feudalism in the Old World. And something they fought hard to keep. Their privilege. The Southern Democrats used the power of the national government (such as the Fugitive Slave Act) to interfere with state laws in the North. To protect their feudalism by keeping slavery legal as long as they could while the north was industrializing and modernizing. With paid laborers. When they lost control of the House due to the growing population in the North they turned to war. Saying that the national government was interfering with state laws in the South. And getting poor southern farmers who owned no slaves to fight and die so the southern aristocracy could live on.
When the Southern Democrats lost the American Civil War they scrambled to maintain their privilege. They unleashed a terror on the freed slaves and Republicans with the KKK. The Democrats then wrote Jim Crowe Laws. Separate but equal. Government-enforced racial segregation. During debate of the Civil Rights Act of 1964 Democrat and former Exalted Cyclops of the KKK Robert Byrd filibustered for 14 hours. To keep the South segregated. With power and privilege in a new aristocracy. Centered not on land but political power and cronyism. Even becoming the party for blacks as ironic as that is. Trading government programs for votes. And destroying the black family in the process. Aid to Families with Dependent Children (AFDC) replaced black fathers with government. And moved single mothers and their children into housing projects that became infested with drugs and crime. But this large (and failed) welfare state transferred a lot of wealth to the Democrats. Giving them money and privilege. That they can use to maintain their power. By taking care of those who take care of them. Lawyers, the UAW, teacher unions and other privilege seekers. For nothing has changed on the left. They have been and always will be an aristocratic-thinking, privilege-seeking people who want to live better than the rest of us. While we pay for their privileged lives.
Tags: aristocracy, aristocratic-thinking, attorney, class action lawsuit, Democrat, Democrat Party, far Left, feudalism, frivolous lawsuits, health insurance, lawsuits, lawyer, money, North, Old World, pension, planter elite, privilege, privilege seekers, privilege seeking, privileged elite, privileged lives, Republican, retirement, slaves, South, Southern Democrats, teacher unions, teachers, tort, tort lawyer, tort reform, UAW, union, unions, United Autoworkers, wealth, welfare state
Week in Review
As ships began to ply the world’s oceans some of them did not make it to their destination. Instead, they ended up on the ocean floor. The financial loss for a ship lost at sea was enough to bankrupt a shipper. Which greatly inhibited early transoceanic trade. But then the good men at Lloyd’s of London began selling marine insurance out of a London coffee house. Spreading the risk of a large financial loss across all shippers. Where each shipper paid a small fee (i.e., an insurance premium) to cover the financial loss for the few ships that sank. It was an excellent system. Mitigating the risk of the very risky transoceanic trade. It worked so well we still use it today (see Ship loses more than 500 containers in heavy seas by Tim Lister posted 2/22/2014 on CNN)
On any day, between 5 million and 6 million containers are on the high seas, carrying everything from potato chips to refrigerators. But not all of them make it to their destination, as the crew of the Svendborg Maersk have just found out.
Their Danish-flagged ship was in the Bay of Biscay last week as hurricane-force winds battered the Atlantic coast of Europe. Amid waves of 30 feet and winds of 60 knots, the Svendborg began losing containers off northern France. After the ship arrived in the Spanish port of Malaga this week, Maersk discovered that about 520 containers were unaccounted for. Stacks of others had collapsed.
It’s the biggest recorded loss of containers overboard in a single incident…
The Through Transport Club, which insures 15 of the top 20 container lines, has put the loss at fewer than 2,000 containers a year. But other industry sources say the number may be as high as 10,000. That would still represent far less than 1% of the containers traversing the world’s oceans. Maersk, one of the world’s largest lines, says that its highest annual loss in the last decade was 59 containers.
If we crunch some numbers we can see how insurance works. Let’s make some assumptions. Conservative ones. Let’s assume the low end of 5 million containers. And the high end of lost containers (10,000). This puts the total loss of containers at 0.20% of the total shipped. Which means that 99.8% of all containers shipped reach their destination. So the insurance pays for a very small number of lost containers. Now let’s assume an average value of $250,000 per container. That makes the value of all containers shipped $1.25 trillion. And the value of containers lost $2.5 billion. Or 0.20% of the value shipped. Which is a small fraction of the total. If we spread this amount over each container shipped that comes to an insurance premium of $500 per container. A small price to pay to avoid a $250,000 loss.
This is why marine insurance works. Because it’s insurance. Where shippers pay a small premium to insure against a very large possible financial loss. Which is why Obamacare won’t work. Because Obamacare isn’t insurance. Neither was health insurance before Obamacare. Because people expect a free ride. If they have ‘insurance’ they don’t want to pay for anything. Which isn’t how insurance works. That would be like shippers having someone else pay for their marine insurance. And then expect to ship things across the ocean for free because they had insurance. Marine insurance doesn’t work like that. And neither should health insurance.
Tags: containers, financial loss, health insurance, insurance, insurance premium, Maersk, marine insurance, Obamacare, premium, risk, shipper, transoceanic trade
Week in Review
It’s no secret that the Democrats benefit by having an ignorant electorate. People who don’t know history or understand economics will more easily fall for their lies. Especially when they victimize their base and demonize the opposition. Republicans. It’s a winning formula. And it has won President Obama reelection. Despite all the warnings from those who know history and understand economics. Who warned us about what Obamacare was going to do to us. And the urgency of repealing it before it became too entrenched. But the naysayers said nay. Uh-uh. And your mother is a whore. Demonizing the opposition with abandon. And laughing at the snarky little jabs on late-night television. Of course it’s different now. As the young and healthy have learned that the Affordable Care Act was predicated on their paying the health care tab for the old and sick.
So Obamacare care went from the fair and just Affordable Care Act to the unfair and unaffordable care act. Stunned by push back from their normally useful exploitable base the Obama administration pushed back against the pushback. Warning the Millenials that they risked not being cool if they didn’t buy health insurance (see Obama’s pathetic pitch to millennials by David Pasch posted 2/14/2014 on the New York Post).
How do you market the Affordable Care Act to Millennials? If you’ve got a good answer, tell the White House right away. It’s tried everything to get us to sign up for health insurance on the federal exchanges — and most of its attempts have been off-tune, off-putting, or just downright dumb.
The latest effort involves former NBA star Magic Johnson. Sorry: While Johnson commands respect for his athletic and personal achievements, he’s the not the best candidate to market anything to Millennials. He retired in 1991. Anyone under 23 never even saw him pick up a basketball.
There’s also the “Brosurance” debacle…
The ads depict Millennials as idiots and floozies. One ad shows college kids doing keg stands; another shows a couple about to hook up, with the tag: “Let’s hope he’s as easy to get as this birth control…”
Other campaigns have been weird, sad or both. One print ad urged us to go to healthcare.gov by telling us that “Mom loves her comfy jeans.” So did that kid in college who played World of Warcraft, but he never made me want to buy health insurance. Then there’s the “pajama boy” campaign, which convinced anyone over 30 that Millennials are insufferable. And another ad targets women with a not-so-catchy tune sung by cats and dogs…
To be fair, Millennials aren’t always laughing at the administration’s ads. Sometimes we’re laughing with them — when they feature celebrities and comedians who we’ve actually heard of, like Amy Poehler, Sarah Silverman or Will Ferrell.
But the real joke is on us. ObamaCare just isn’t a good deal for my generation.
The problems start with how much plans cost. Insurance rates have skyrocketed for Millennials since the exchanges opened in October. According to the Manhattan Institute, the average 27-year-old man is facing a 97 percent premium hike and the average 27-year old woman a 55 percent increase.
It is hard to believe that these are the same people who put a campaign together that defeated Mitt Romney during the worst economic recovery since that following the Great Depression. And the incompetence and cover-up of Benghazi (it was a spontaneous uprising by people angered over a YouTube video who pulled pre-sighted mortars from their back pockets). One wonders how you go from the 2012 campaign to “Let’s hope he’s as easy to get as this birth control” and “Mom loves her comfy jeans.” I just don’t see these influencing the electorate to vote Democrat.
Why is the premium hike for men almost twice what it is for women? Because the Affordable Care Act now forces men to buy insurance to cover a reproductive system they don’t have. For in the name of fairness women can no longer be charged more than men for health insurance. So they charge men more. It doesn’t lower the cost of women’s health insurance though. For it is still rising 55%. So where is all that money going? To pay for the old and sick.
The Democrats believe Millenials are idiots and floozies. For they have worked tirelessly to dumb down our public schools and higher education. So they can more easily lie to those they think of as idiots and floozies. It’s as if you can hear them say, “Look, we gave you free birth control. Isn’t that worth an extra car payment a month?” Based on the enrollment numbers of the Millenials, apparently not.
Tags: Affordable Care Act, birth control, Democrats, floozies, health insurance, idiots, idiots and floozies, lie, Millenials, Obama, Obamacare, old and sick, premium hike, young and healthy
Week in Review
The roll out of the Affordable Care Act (i.e., Obamacare) has given us a plethora of unintended consequences. From freezing new hiring. To pushing full-time workers into part-time. To people losing the health insurance and doctor they liked and wanted to keep. To higher insurance premiums. To higher deductibles. To higher co-pays. Taking a health care system that the vast majority of people were satisfied with and making it worse. To accommodate a small percentage of the population who were uninsured. If that wasn’t bad enough it doesn’t even look like some of the people who signed up for Obamacare are paying their insurance premiums (see Next problem for Obamacare: deadbeat enrollees by Rick Newman posted 2/14/2014 on Yahoo! Finance).
The New York Times has discovered that only about 80% of people purchasing health insurance through the federal online marketplace or a similar state-run exchange paid their first month’s premium. There’s no single source of such data, but the Times canvassed insurers participating in the program, such as Aetna (AET), Wellpoint (WLP), Humana (HUM) and Blue Shield of California. All said that the first-month payment rate ranged from 75% to 80% or so, far lower than for typical plans. If enrollees don’t pay the first month’s premium, their insurance never goes into effect.
That doesn’t mean, however, that one-fifth of the people signing up for Obamacare are blatantly refusing to pay. Technical problems with some of the exchange websites may have left people enrolled in an insurance plan without knowing it. Some may never have received a bill or confirmation of their enrollment. Others may have unwittingly signed up for two different policies, while paying for only one.
To make the Affordable Care Act work required a huge health care cost transfer from the old and sick to the young and healthy. The young and healthy, incidentally, made up a sizeable portion of the uninsured. Because they were young and healthy and felt invincible. And invincible people don’t need to buy insurance. So Obamacare needed the individual mandate to force these people to buy insurance against their will so they could pay for the old and sick.
Of course when they raised the price of health insurance to cover pre-existing conditions it wasn’t the young and healthy that ran to the Obamacare exchanges. It was the old and sick. Adding too many old and sick to the insurance pool. And not enough of the young and healthy. Those who would pay without consuming any benefits. Because they are young and healthy. Causing the insurers to pay more out in benefits than they receive in premiums. Forcing them to raise their premiums. Which will, of course, kick off the death spiral as people drop out because they can’t afford those higher rates. Which will, in turn, force the insurers to raise their rates again. Hence the death spiral. And as bad as all of that was now it looks like about 20-25% of those who ‘signed up’ either didn’t or are simply choosing not to pay. Making the financial predicament of the insurers far worse.
Of course if your plan was to force single-payer (i.e., national health care) onto the people against their will then everything is going according to plan to destroy the private insurance market. Leaving only the government to step in and provide single-payer (i.e., national health care). Which should fill everyone with confidence after seeing how well they rolled out the Affordable Care Act. And no doubt will impress us even more with the rollout of single-payer (i.e., national health care).
Tags: Affordable Care Act, death spiral, exchanges, health insurance, insurance premiums, National health care, Obamacare, old and sick, premiums, Single payer, young and healthy
Having Government remake our Health Care System is not the Limited Government of our Founding Fathers
According to a Gallup poll approximately 38% of people identify themselves as conservative while only 23% identify themselves as liberal (see Liberal Self-Identification Edges Up to New High in 2013 by Jeffrey M. Jones posted 1/10/2014 on Gallup). With most of the rest (34%) identifying themselves as moderate. Or, in other words, 77% of the people do NOT identify themselves as liberal. That’s over three-quarters of the population. Which means if you were in a group of four people only one of the four would be a liberal.
And yet we have Obamacare. Thanks to the Affordable Care Act passed on partisan lines when the Democrats controlled both chambers of Congress. The most liberal change to our health care system (the government will charge people a fine/tax if they don’t buy health insurance). The only time in history that government has forced people to buy something against their will. Without having any kind of say in the matter. Like we do with car insurance. If you don’t want to buy car insurance all you have to do is NOT drive a car. But with Obamacare there is no choice. Everyone has to buy health insurance. Period.
Having government remake our health care system is not the limited government of our Founding Fathers. It is actually more in keeping with a royal decree issued by the king the Founding Fathers fought for their independence from. Ye shall do this. For the ruler has spoken. And ye shall pay more taxes to fund this huge growth of government. Another thing not in keeping with our Founding Fathers. Higher taxes. So how have we come to this when 77% of the people don’t want any of this? Because liberals are some of the best liars in the world. That’s how.
Discounted Reimbursements are causing Doctors and Hospitals to leave the Obamacare Network
To make Obamacare work they needed to get people to pay more for their health insurance. So they could raise a lot of money to subsidize health insurance for those who could not afford to buy it. Which they couldn’t do if people kept the policies they liked and wanted to keep. Especially those lower-cost ones. So they made the policies people liked and wanted to keep noncompliant with the Affordable Care Act. Forcing their insurers to cancel them. And forcing people to buy more costly policies. This providing the subsidy money Obamacare needed.
So this was the plan. To cause mass cancellations. And then force those people with cancelled policies to buy more expensive policies. But this was only part of the formula. To keep more of those higher insurance premiums they also raised deductibles. So not only did people pay more for their health insurance policies. Those policies paid for less. Forcing people to spend a lot more out-of-pocket before their insurance kicked in.
We have huge budget deficits. And growing national debt. A big part of that debt is from Medicare and Medicaid (and Social Security). Getting people to pay for other people’s health insurance won’t cut these costs. But there is something that will, though. The same thing the government is doing with Medicare. Pay doctors and hospitals less. By discounting their reimbursements. It worked pretty well with Medicare. So they were sure it would work well with Obamacare. Of course, health care providers overcharged private insurers to recoup what the government didn’t pay. So this will no longer be an option under Obamacare. Which has caused a lot of doctors and hospitals to already leave the Obamacare network.
People would rather hear a Pleasant Lie than an Unpleasant Truth
There was a lot if opposition to the Affordable Care Act. For the people did not want national health care. And they felt that was where Obamacare would lead to. So President Obama told people in person. And looked into the camera. Making a promise to the American people. “If you like your health care plan you can keep your health care plan. If you like your doctor you can keep your doctor. If you like your hospital you can keep your hospital. Period. No one was going to take these away from you. All we’re going to do is give you better health insurance while saving the average family $2,500 on their annual insurance premium.” None of which was true.
Of course, had the president told the truth he would only have confirmed everyone’s fears. Which is why he lied. A lie so big PolitiFact named it the Lie of the Year. And he told the lie so easily. He was so reassuring that the people believed him. In fact, they wanted to believe him. For they liked this president. And they trusted him. Despite his economic policies having failed to produce a strong economic recovery. For even when polls showed the people thought his policies were taking the country in the wrong direction the people still liked him. Because he tried. Always saying things the people wanted to hear. A lot of feel-good things. Affordable health care for everyone. Leveling the playing field. Making the rich pay their fair share. Free birth control. Not enforcing federal drug laws in Colorado and Washington. With talk like that no wonder the people liked him. And why it was so easy for him to lie to the people. As they were willing to believe just about anything he said.
President Obama is everything our parents aren’t. Who tell us what we need to do. What we should do. And what we shouldn’t do. Regular killjoys. Unlike the president. And the Democrats. Who don’t mind people having a little fun in their lives. Unlike the Republicans. Who are as bad as our parents. Always telling us things we don’t want to hear. Like truths. Facts. And how things are. Reality. While the president and the Democrats tell us how things could be. How life can be more fun and more carefree their way. Whereas life requires a lot of hard work and sacrifice the Republicans’ way. Because reality can suck. Which is why some people use intoxicants to escape it. Or vote Democrat. Willing to accept on faith their fictional
alternative to escape reality. For it turns out people would rather hear a pleasant lie than an unpleasant truth. And people will like you if you tell them pleasant lies. While they won’t like you very much if you tell them unpleasant truths. Which is why good liars can make anyone like them while those who don’t lie can’t. This is why people didn’t like Mitt Romney. He told the truth. And why people liked President Obama. Because he told them what they wanted to hear. Such as things like the Lie of the Year.
Tags: Affordable Care Act, conservative, deductibles, Democrats, discounting, doctor, Founding Fathers, health care plan, health insurance, hospital, If you like your health care plan, insurance premium, liberal, lie, lie of the year, limited government, Medicare, Obamacare, pleasant lie, policies, premiums, President Obama, reimbursement, subsidy, taxes, truth, unpleasant truth