Wednesday, June 01, 2011

Here's a first: Fire Sale on Health Insurance

Last we checked, the goofy ObamaPool© program had few takers, and the new numbers aren't encouraging; only "about 18,000 people nationwide have enrolled in the plan over the past year."

Keep in mind, the Congressional Budget Office had estimated that something like 4 million Americans would qualify for the program. That's a response rate of less than one-half of one percent.


So the program's a bust, even though it offers immediate coverage for pre-existing conditions (even maternity!) at extremely competitive rates. A normal, profit-driven insurer would take stock, examine the marketplace, and immediately close it down.

But this is ObamaCare©, so the gummint's response would be?

Of course:

"The federal government said Tuesday that it will slash premiums by 40 percent to entice more Arizonans to join a high-risk insurance plan for people with pre-existing medical conditions." [emphasis added]

Rest assured, the Grand Canyon State won't be the only one to reap the benefits; with the $5 billion initial seed money already on the table, the other 56 states won't be far behind in demanding their fair share of the premium reduction bonanza.

The good news, such as it is, is the the Federales may be onto something with this wrinkle:

"In addition to reducing premiums and making it easier for people to enroll, the federal government will expand its outreach to the business community ... Sayen said Medicare officials this fall plan to reach out to insurance brokers ... to reach more potential customers."

Gee, where have we heard this idea before?

The catch?

"He said it is too early to tell what type of commission may be available to insurance brokers."

More rocket-surgery from Washington.
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