Cash Piñatas and Obamacare

Posted by PITHOCRATES - October 28th, 2013

Economics 101

Health Insurance provides Financial Protection from Risk unlike Obamacare

A lot of people are talking about Obamacare.  The poor website launch.  People losing the insurance policies and doctors they liked and wanted to keep.  Higher insurance premiums.  And higher deductibles.  All of which conflicts with what President Obama had promised.

So there are problems.  And people are becoming less enamored with Obamacare now that it is personally touching their lives.  But there is a bigger problem.  Obamacare isn’t insurance.  And that’s what a lot of people don’t even understand.  Even some insurance agents.  Who may only see those higher premium prices and think Obamacare is a one-way ticket to easy street.  But if you understand insurance, economics and history you’ll see it’s not.  So what is insurance?  Here’s a definition from Investopedia:  

A contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured.

The key word in this definition is ‘risk’.  Insurance provides financial protection from risk.  Obamacare doesn’t do that.  It forces people to pay for things they have no risk exposure to.  For example, an older couple with adult children still needs pediatric coverage on their policy.  Which just increases the cost of their insurance.  While providing no financial protection from this particular risk.  Sick children.

Premiums and Deductibles are Soaring to herd the Young and Healthy into the Government Exchanges

So why is Obamacare raising health insurance premiums?  To pay for people who don’t pay into the insurance pool.  The poor.  And the very sick who can’t afford health care let alone health insurance.  The higher premiums people are paying go to them.  This is a cost transfer.  From a higher income group to a lower income group.  Or in other words, a redistribution of wealth.  From those according to ability to those according to need.

So the president wasn’t exactly telling the truth about keeping your insurance and doctor if you wanted to.  This can’t happen under Obamacare.  Because to redistribute wealth you need to take it away from someone.  And guess who that someone must be to make Obamacare work?  The young and healthy who are buying health insurance.  Those people who pay into the insurance pool for financial protection from risk.  But who are generally healthy and receive no benefits from the insurance pool.  Who President Obama and the Democrats look at as cash piñatas.  Which they can’t whack open if they have private insurance policies.

This is why these people must lose the policies and doctors they like.  And why premiums and deductibles are soaring.  To herd these cash piñatas into the government exchanges.  Where the government can collect their insurance premiums.  And redistribute it.  While those high deductibles keep those premiums going out as benefits to the cash piñatas to a minimum.

The Young and Healthy choosing Medicaid over Obamacare

Of course, there is a flaw in this grand strategy.  Arrogance.  The government believing that young and healthy people will just stand there while the government whacks them open to get their cash.  Which they aren’t.  And it’s just not because the Obamacare website is a disaster.  It’s because a lot of these people are choosing Medicaid.  The health care program for the poor.

Medicaid enrollments are far outpacing Obamacare enrollments.  By a huge number.  Which is a big problem.  Because Medicaid enrollees don’t pay insurance premiums.  And they are not subject to deductibles.  Because they are poor and can’t afford to pay anything out of pocket.  So instead of adding to the insurance pool these cash piñatas will take from the pool.  And that won’t change when they fix the broken website.  Which is why it is a fatal flaw.

Compounding this problem is the President’s economic policies that have given us the worst economic recovery since that following the Great Depression.  Since President Obama assumed office his policies have forced approximately 10 million people from the labor force.  Unemployed, it is unlikely that they will be able to afford health insurance.  And probably will enroll in Medicaid, too.  If they haven’t already.  So Obamacare isn’t going to work as-is.  The question is, what will they do next?  Other than blame the greedy insurance companies?  Whose cooperation in this redistribution of wealth scheme will lead to their own demise.  For as more and more people can’t afford those expensive insurance policies they’ll either turn to Medicaid.  Or demand national health care.  Which people don’t need insurance companies to have.


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Birth Control Requirement in Obamacare forces Catholics to stop being Catholic

Posted by PITHOCRATES - May 19th, 2012

Week in Review

Obamacare was supposed to make things better.  Not worse.  If you liked your current health insurance you were supposed to be able to keep it.  And prices were supposed to fall.  And yet the reality is not quite like this (see Catholic university drops student health insurance, cites ObamaCare posted 5/16/2012 on Fox News).

A Catholic university in Ohio said Tuesday it is being forced to end a student health insurance program over the Obama administration’s contraception mandate and costs associated with other provisions of the health care overhaul.

Franciscan University in Steubenville, Ohio, said it has so far excluded contraceptive services and products from its health insurance policy for students and will not participate in a plan that “requires us to violate the consistent teachings of the Catholic Church on the sacredness of human life.”

In its decision to drop coverage, the school cited the contraception mandate, but also a requirement that the maximum coverage amount be increased to $100,000 for policyholders — claiming that would have made premiums skyrocket. A university official told Fox News Radio the students’ basic $600 policy was going to double in cost in the fall and triple  next year and that the school’s insurance provider said the increases were the result of the federal Patient Protection and Affordable Care Act…

Students now will likely have to be covered through their parents’ policy, though the school says fewer than 200 of its students had been buying insurance from the university.

By making insures provide everything free to the insured raises the price everyone must pay for those insurance policies.  Especially when they have to cover preexisting conditions.  For if they do why would anyone buy a policy until they are diagnosed with an expensive health problem?  What incentive is there to pay for insurance when you can get the same coverage without paying years of premiums beforehand?

But this is all a moot point I guess if you’re Catholic.  Because for a Catholic to buy a policy they have to give up Catholicism.  For if all policies must include free birth control than everybody has to pay for birth control.  Something Catholics don’t do.  At least when the First Amendment was still in the Constitution.  Where it stated, “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof…”  Before Obamacare removed it.  For making Catholics pay for birth control in their health insurance policy clearly prohibits their free exercise to practice Catholicism.

And if these ‘fewer than 200’ students like their current policy they have a problem.  Because they can’t keep them.  So much for all the promises of Obamacare.  It won’t be cheaper.  You can’t keep what you have.  And if you’re a Catholic you have to stop being a Catholic.  Somehow that just doesn’t seem right.


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Too Sick or too Old? Sorry, no Health Care for You in the NHS or in Obamacare

Posted by PITHOCRATES - April 8th, 2012

Week in Review

Critics of Obamacare warned that this national health care system would contain death panels.  Too sick or too old?  Sorry, no health care for you.  That’s ridiculous said the supporters of Obamacare.  There was no mention of ‘death panels’ anywhere in the bill.  And there’s probably no mention of death panels in Britain’s National Health Service (NHS).  But elderly patients are left to die all of the time.  Precisely because they are too old (see Sentenced to death for being old: The NHS denies life-saving treatment to the elderly, as one man’s chilling story reveals by John Naish posted 4/6/2012 on the Daily Mail).

When Kenneth Warden was diagnosed with terminal bladder cancer, his hospital consultant sent him home to die, ruling that at 78 he was too old to treat.

Even the palliative surgery or chemotherapy that could have eased his distressing symptoms were declared off-limits because of his age.

His distraught daughter Michele Halligan accepted the sad prognosis but was determined her father would spend his last months in comfort. So she paid for him to seen privately by a second doctor to discover what could be done to ease his symptoms.

Thanks to her tenacity, Kenneth got the drugs and surgery he needed — and as a result his cancer was actually cured. Four years on, he is a sprightly 82-year-old who works out at the gym, drives a sports car and competes in a rowing team…

Sadly, Kenneth’s story is symptomatic of a dreadful truth. According to shocking new research by Macmillan Cancer Support, every year many thousands of older people are routinely denied life-saving NHS treatments because their doctors write them off as too old to treat…

This kind of ‘professional opinion’ appears to be costing more than 14,000 lives each year, thanks to routine discrimination by doctors who assume older patients are too frail for surgery, chemotherapy or radiotherapy. 

This is according to experts at Macmillan Cancer Support, who warned last week that every day up to 40 elderly cancer sufferers are dying needlessly because they are being denied the best treatments. This is particularly true, it says, for patients over the age of 70.

The charity estimates that if the treatment of older patients matched that on offer in the U.S., as many as 14,000 lives could be saved every year…

Last week, the respected health research charity, the King’s Fund, warned that prejudice about older people means they often go without treatment for conditions such as depression, and are not even tested for illnesses such as heart disease.

This is despite huge advances in medical care which mean that patients can now successfully undergo major surgery at ages where they would not previously be expected to survive.

In America, doctors pioneering the field of ‘geriatric surgery’ regularly perform open-heart surgery on people in their 90s…

Last year, research by the National Cancer Intelligence Network found evidence of widespread age-based discrimination in the NHS on women with breast cancer.

Its study of 23,000 sufferers found that 90 per cent of those aged 30 to 50 are offered surgery to remove tumours, compared to 82 per cent of those aged 60 to 70, and 70 per cent of those in their 70s…

So if you’re elderly and you live in America you better get your health care fast.  Before Obamacare kicks in.  And decides you’re too old to treat.  For if they’re doing it in the NHS they’ll be doing it in Obamacare.  Not because they are mean and hate old people.  But simply because of the economics.  Doctors will advise families that there is no money to spend on their loved ones.  But don’t be upset.  It’s nothing personal.  It’s just business.

It is ironic that the American Association of Retired Persons (AARP) supported Obamacare as they are supposed to represent the elderly that pay their membership fees.  Why you ask would they do something like this?  Well, they sell insurance policies to seniors that pay for what Medicare doesn’t cover.  Medigap policies.  And to get AARP onboard with Obamacare the new health care law exempts AARP from pricing formulas restricting the amount of their premiums spent on non-health services.  Allowing them to charge higher premiums than Obamacare allows other insurers to charge.  At least according to The Daily Caller.  So when Obamacare denies seniors life-saving treatments AARP can tell their families not to be upset.  It’s nothing personal.  It’s just business.

Advocates of national health care like to point to the NHS and say that is the model to follow.  And we are now moving in that direction with Obamacare.  Which can mean only one thing.  Death panels will follow.  Even though they are not specifically mentioned in the bill.  Because when it comes down to it health care is a game of numbers.  Accounting decisions.  Especially when the government runs it.  And the only way to control costs is by rationing services.  And what better way to ration services than by simply withholding them from the greatest consumers of those services?  The elderly.  Don’t think it will happen?  Just look at the NHS.  That is our future.  Where health care isn’t about doing what’s right for the patient.  But controlling costs.  But it’s nothing personal.  It’s just business.


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