April 23, 2014
The Obama administration has stated unequivocally that the debate concerning whether or not the Patient Affordable Care Act has been a success is over. They’ve won the argument and its evidenced by the tens of thousands of Americans who have signed up on exchanges across the country.
Here’s a small glimpse into just how successful Obamacare has been.
In Georgia, where some 650,000 people are eligible for subsidies only about 220,000 applications have thus far been received. So, to start, we’re about 70% short on the originally estimated sign up rate.
Even more successful than that, however, is that of those 220,000 received applications Georgia Health News reports that at least half of the applicants have failed to actually pay their monthly premiums even though most of those people are being subsidized by the government to some extent.
Georgia insurers received more than 220,000 applications for health coverage in the Affordable Care Act’s exchange as of the official federal deadline of March 31, state officials said Wednesday.
Insurance Commissioner Ralph Hudgens, though, said premiums have been received for only 107,581 of those policies, which cover 149,465 people.
“Many Georgians completed the application process by the deadline, but have yet to pay for the coverage,” Hudgens said in a statement Wednesday.
Obamacare is, apparently, so affordable that even people receiving massive discounts on their plans via government subsidization can’t make their payments.
Earlier this year it was noted that there would be a near instantaneous collapse of Obamacare services stemming from the fact that the system itself is predicated on the notion of having one group of people pay for the insurance of those in need. Well, when those people who have money fail to even sign up, let alone make payments, then those receiving full or partial subsidies will not be putting enough money back into the scheme to cover the overall costs. Karl Denninger explains how this arithmetic works:
You’re “27″, the average premium is $266.20/month or $3,194.40 per year. How many 27 year olds have an extra $3,200 to spend on this? Remember, this is the price that virtually every uninsured 27 year old must be willing — and able — to cough up in order to prevent the model this system is predicated on from collapsing.
If those 27 year olds don’t show up, and they won’t, then the system collapses instantly. If they do show up because the government threatens them with fines the economy collapses as $3,200 a year exceeds the average 27 year old’s disposable personal income after mandatory expenses (e.g. food, shelter, etc.) Remember, there are always exceptions but these premiums are averages and over large pools of people the statistical averages are what matters — not the ends of the barbell.
We realize that Common Core standards may have made it difficult for Obamacare proponents to work out the basic mathematics of it, but regardless of how you approach the problem, the answer always results in an unsustainable business model.
This isn’t just theoretical. The data from Georgie shows this phenomenon taking place in the real world right here and now.
What it all boils down to is this: Obamacare is dead in the water in less than a year and will require a massive overhaul or outright repeal.
As democrat Congressman Stephen Lynch pointed out on Boston Herald Radio last week, it’s only going to get worse from here and we should fully expect it to hit the fan in short order:
There are parts of Obamacare that have been postponed because they are unpalatable. As these provisions come into effect the administration thus far is saying ‘we really can’t handle this right now so we’re gonna delay it.’
These obligations keep piling up… it’s going to hit the fan.
That’s a huge tax. It’ll be the first time in this country’s history that we have actually taxed health care. We used to treat it like food… that people would die without it… don’t tax that. Well, we’re in a new day now.
I think it’ll be impossible for a repeal right now… You’ve taken on 31 million new people… you’re trying to provide health care for them.
The problem has always been paying for it. You’ve got to rely on the other individuals who already have health care to pay for that.
This is what happens when you pass the bill without first reading the bill.