It’ll get worse if and when healthcare.gov starts working: Welcome to the Obamacare death spiral

by 1389 on October 30, 2013

in "Obamacare", 1389 (blog admin), Islamic infiltration/invasion, IT profession, outsourcing

Money down the drain
Your tax dollars at work

The upshot: Rapidly increasing premiums, deductibles, and co-pays

Liberty Works: Faulty Website is Only the First ObamaCare Crisis

October 26, 2013 | By BoomerJeff In ObamaCare Disclosures

Who brought the phrase “health Insurance death spiral” into the ObamaCare debate?  Was it Sarah Palin?  Rush Limbaugh?

While it may seem provocative or alarming in context of the current political climate, it’s actually a common term in the vocabulary of health insurance actuaries.

The setup for a classic insurance death spiral is one of the most hyped features of ObamaCare, guaranteed issue.  This is the insurance industry label for offering health insurance with no health screening so that those with pre-existing conditions are automatically accepted.  A predictable response to guaranteed issue is the phenomenon the insurance industry calls “adverse selection,” the tendency of people who are already sick or believe they are at risk of needing medical services in the near future to buy health insurance, while those in good health tend to forgo the expense.

We exposed the President’s politically motivated deceptions regarding pre-existing conditions here.  Put bluntly, the only way an insurer can absorb the extra cost of guaranteed issue and not go broke is by collecting extra money from healthy people.

The death spiral begins if fewer healthy people than anticipated sign up and pay premiums.  The insurer loses money and must set premiums even higher, driving away even more healthy people.  Eventually, the premiums become so high that only those who need immediate, expensive, medical care will buy a policy and the company has no choice but to complete the death spiral by exiting the health insurance business.

Please keep reading – this is important, it affects your pocketbook!

Insurance companies expected to profit from Obamacare; the joke’s on them

Bloomberg: Insurers Oppose Obamacare Extension as Danger to Profits

By Shannon Pettypiece & Alex Wayne – Oct 30, 2013 12:01 AM ET

Allowing Americans more time to enroll for health coverage under Obamacare may raise premiums and cut into profits, insurers are telling members of Congress in a bid to stop such a move.

Extending the enrollment period would have a “destabilizing effect on insurance markets,” said Robert Zirkelbach, a spokesman for the Washington-based lobbyist group American’s Health Insurance Plans. Allowing younger, healthy Americans to sign up later, as they probably would, means less revenue for insurers counting on those premiums to help defray the cost of sicker customers, threatening industry profits.

“If you can enroll at any point in the year, then you can just wait until you get sick,” Brian Wright, an analyst with Monness Crespi Hardt in New York, said in a telephone interview. “This isn’t the industry crying foul and exaggerating the issue, this is actually one of those issues where there is a well-grounded reason for the concerns.”

It’s a message the industry is taking to Congress after Republicans there, along with at least 10 Democrats, have suggested enrollment be extended beyond its current March 31 deadline because of issues with healthcare.gov, the federal health insurance website that’s been plagued by software miscues.

Consumers who don’t have coverage through their employers or government health programs are being encouraged to sign up by mid-December for plans that take effect Jan. 1. After March 31, the Patient Protection and Affordable Care Act imposes penalties on Americans without coverage.

Costlier Patients

A later deadline would stretch insurers past the time when by law they must set rates for 2015. If insurers only have information from sicker, costlier patients in hand by the time they have to start reporting premiums to the federal government, it may force them to boost premium costs for the next year ahead, Zirkelbach said.

“Extending the open enrollment period could also cause significant uncertainly and instability in 2015 premium rates,” he said in a written statement. “Health plans would have to start submitting premiums to regulators before knowing who is enrolled in their insurance plans.”

Aetna Inc. (AET) Chief Executive Officer Mark Bertolini said yesterday on a call with analysts that he is concerned the flaws with healthcare.gov will lead to an extension of the enrollment deadline.

Full Enrollment

“We worry about things like extended open enrollment and for how long that goes,” Bertolini said. “We think the level of participation of the full population in the exchanges is important, so the enrollment process on the website is incredibly important to get right because, as individuals try these websites, the younger, healthier people aren’t going to give them more than one shot.”

Continue reading…

More examples of adverse selection:

Huge deductibles may mean you go broke BEFORE you see a doctor:

Why healthcare.gov won’t be working properly anytime soon: Technological success is all about people, and Obama hires all the wrong ones

Michelle Malkin: What happened to all of Obama’s technology czars?

Why does the White House need a private-sector “tech surge” to repair its wretched Obamacare website failures? Weren’t all of the president’s myriad IT czars and their underlings supposed to ensure that taxpayers got the most effective, innovative, cutting-edge and secure technology for their money?

Now is the perfect time for an update on Obama’s top government titans of information technology. As usual, “screw up, move up” is standard bureaucratic operating procedure.

Let’s start with the “federal chief information officer.” In 2009, Obama named then 34-year-old “whiz kid” Vivek Kundra to the post overseeing $80 billion in government IT spending. At 21, Kundra was convicted of misdemeanor theft. He stole a handful of men’s shirts from a J.C. Penney’s department store and ran from police in a failed attempt to evade arrest. Whitewashing the petty thief’s crimes, Obama instead effused about his technology czar’s “depth of experience in the technology arena.”

Just as he was preparing to take the federal job, an FBI search warrant was issued at Kundra’s workplace. He was serving as the chief technology officer of the District of Columbia. Two of Kundra’s underlings, Yusuf Acar and Sushil Bansal, were charged in an alleged scheme of bribery, kickbacks, ghost employees and forged timesheets. Kundra went on leave for five days and was then reinstated after the feds informed him that he was neither a subject nor a target of the investigation.

As I noted in my 2009 book, “Culture of Corruption,” city and federal watchdogs had identified a systemic lack of controls in Kundra’s office. Veteran D.C. newspaper columnist Jonetta Rose Barras reported that Acar “was consistently promoted by his boss, Vivek Kundra, receiving with each move increasing authority over sensitive information and operating with little supervision.” Yet, Team Obama emphasized that Kundra had no idea what was going on in his workplace, which employed about 300 workers.

A mere 29 months after taking the White House job, Kundra left for a cushy fellowship at Harvard University. In January 2012, he snagged an executive position at Salesforce.com, which touted his “demonstrated track record of driving innovation.”

Much more here…

More to the point:

A goodly number of Obama’s “whiz kids” were recruited from among our Muslim enemies.

Not only are we giving them our tax dollars (which will end up being used against us), but also we are putting the private health information of American citizens into the hands of our avowed enemies.

I remember when treason was not only an impeachable offense, but a capital one as well.

Those were the days…

{ 1 comment… read it below or add one }

1 Dana October 31, 2013 at 12:52 pm

I say LET ObamCare GO THRU, so it CAN AFFECT the 2014 Elections. Any Repub is a RINO for Delaying it to AFTER the 2014 Elections. (keep NORES on YOUR Senators and Reps on this). It needs to HURT FIRST the VERY People that VOTE for the DEBTOCRATES and Obama to get thru to them. Delaying till AFTER the ELECTIONS is HORRIBLE WON’T HELP us.
We have a MUCH BETTER CHANCE of the SENATE Becoming CONSTITUTIONAL CONSERVATIVE if we DON’T DELAY ObamaCare – the UNAFFORDABLE CARE ACT.

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