Friday, January 08, 2016

Friday Term of Art: "Unsustainable"

That is, the whole flimsy house of cards upon which the ObamaTax was built relies substantially on enticing young (and presumably healthy) victims people to enroll. That's because, by and large, this cohort tends to have fewer (and less expensive) claims, so they represent essentially free money to "the system."

But what happens when you can't entice threaten cajole them into actually pulling the trigger?

Well, you have lots of unhealthy folks (of all ages) signing up, causing major claims, which are then supposed to be backstopped by Uncle Sugar (how's that working out?).

Which brings us to this completely predictable news:

"26% of people who signed up for coverage as of Dec. 26 in the 38 states that use the federal exchange were ages 18 to 34 ... largely unchanged from a roughly comparable two-month period through Jan. 16, 2015."

So what does that mean?

In a nutshell: that which can't go on, won't . That is, as more and more younger (generally healthier) young people continue to opt out, claims will continue to rise with little or no corresponding increase in premium revenue.

But hey, they'll just make it up on volume.

[Hat Tip: FoIB Michael Cannon]
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