Wednesday, July 02, 2014

Unsustainable - The Party is Over

The outlook for Obamacare is extremely cloudy in the Sunshine State (and the other 57 as
well). As bad as it is now, storm clouds are brewing for 2017.
In two years, the ACA’s structural problems will lead to substantial premium increases. Once that happens, Floridians will likely leave the insurance market in droves. They’ll have little choice—they won’t be able to afford health insurance because federal subsidies won’t keep up with the rapid price increases. Within a decade, this could swell the ranks of the state’s uninsured by 45 percent.
Tampa Tribune

Well that's disturbing.
But why won’t this happen until 2017? Because that’s the year when the Affordable Care Act goes into full effect and certain temporary provisions begin to sunset. The changes will affect all plans sold for 2017 and beyond.
Two big changes will occur that year: Insurance companies will no longer have access to ACA’s “re-insurance” and “risk corridor” programs. The first item currently allows insurers to bill the government for the most expensive patients; the second one guarantees that the industry’s losses will be subsidized by you. When these two programs end, the insurance industry won’t have access to taxpayer money.
That leaves Floridians to pick up the tab. 
Very significant.
2016 is Obama's last year as president.
Crowd goes wild.
Whoever inherits what is left of the Oval Office will see something like the mess following a frat party. 
And to think Obama and Uncle Joe said they had it bad with what they inherited.

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