November 15, 2013
We’ve got a serious problem on our hands and it’s one that many Obamacare apologists refuse to admit.
The Patient Affordable Care Act is an unprecedented catastrophe in the making.
While millions of Americans are losing their health care coverage within weeks, the health care exchanges advocated by Obamacare supporters are in shambles. So far, a little over 100,000 people have signed up. Moreover, what’s important to understand is that none of these people have yet paid a premium, so in essence, those are preliminary numbers. When the monthly bill comes due, we’ll see how many people actually have the money to pay the exorbitant new rates.
The key problem is one of basic arithmetic.
Remember, what this legislation does is it robs from Paul to pay Peter. This means that the whole system is essentially a pyramid scheme that depends on one group of people paying the premium for those who are the beneficiaries of this “free” and “affordable” insurance.
As we know all too well, the new rates for those who have to pay into the system aredouble or triple their previous insurance premiums – and those newly minted rates actually stand to double again because there is not enough money in the system to provide coverage for everyone.
We can sum this up in two words: Unmitigated Disaster.
And just so we’re clear, we’re not talking about these issues rearing their head a decade or so down the road.
We’re talking about mere months before the whole thing falls apart.
The scary thing? When it crumbles, the broader economy goes with it.
The reality? This number sucks irrespective of so-called “technological” problems. The system needs 100 times that number to be “stable.”
It won’t be.
If they manage to get ten times this number in the next six weeks (the cut-off), which is looking to be a fantasy-land impossibility, the entire system will detonate within the first year and provided they force it to “survive” premiums will see huge increases, likely double or more, a year from now.
Let me remind everyone that nobody in the lower and middle class has the money to pay not only for the so-called “insurance” under these plans which are running roughly twice what everyone is spending now but in addition if you use the so-called “insurance” the deductibles are frequently double to ten times what you had before.
There’s no fix for this folks.
The stock market is ignoring a passed law that will cause these impacts starting January 1st and it’s utterly amusing to watch the S&P up 10 and the Naz skyrocketing today (not to mention the retailers) when you look at what this is going to do to people’s budgets coming into the new year with the holidays coming up.
The numbers are even worse than I had expected they might be…. especially on the federal exchange side.
Via Karl Denninger’s Market Ticker
Americans have lost trillions of dollars in wealth in since the crash of 2008. We’ve seen jobs wiped out to such an extent that nearly one in four Americans can’t find a job. Over 100 million people are living in poverty or right on the edge.
And now, on top of all that, those who are fortunate enough to have jobs just got hammered with a doubling and trebling of their insurance rates, which for many American families have risen as high as an entire month’s mortgage payment.
If you think this isn’t happening, you’re living in a dream world. Your politics are irrelevant to the outcome. What your savior in the White House says makes absolutely no difference. If you want to close your eyes and pretend like it’s not happening, then reality will hit you square in the face at a high rate of speed in the very near future.
The collapse is dead ahead. It cannot be stopped.
Expect 2014 to be a rough year for America.