Impacts of Obamacare repeal summed up in two words

Adverse selection … which, of course, is the tendency for human beings to act in their own perceived best interest.

You can repeal Obamacare and go back to the way things were, but repealing it and keeping things the same or better is quite a challenge. Proponents of repeal do not fully understand the system or in my opinion, human nature. They also tend to base their views on their current circumstances, ie. I’m young, I don’t have high bills, I don’t need maternity benefits, I can pay cash for most of my care, etc. They think high risk pools will take care of pre-existing conditions so everyone can enjoy lower premiums (but, of course, pay for these pooled expenses through their taxes).

In brief, CBO and JCT estimate that enacting that legislation would affect insurance coverage and premiums primarily in these ways:

The number of people who are uninsured would increase by 18 million in the first new plan year following enactment of the bill.

Later, after the elimination of the ACA’s expansion of Medicaid eligibility and of subsidies for insurance purchased through the ACA marketplaces, that number would increase to 27 million, and then to 32 million in 2026.

Premiums in the nongroup market (for individual policies purchased through the marketplaces or directly from insurers) would increase by 20 percent to 25 percent—relative to projections under current law—in the first new plan year following enactment. The increase would reach about 50 percent in the year following the elimination of the Medicaid expansion and the marketplace subsidies, and premiums would about double by 2026.

Congressional Budget Office/ JCT 1-17-17

I don't get it, check the facts!

I don’t get it, check the facts!

Republicans are on the path to political suicide because they do not understand the health care system, how people view paying for health care or human nature. And they believe the polls that the majority of Americans dislike Obamacare. The fact it the vast majority of Americans have no idea what they are talking about when it comes to Obamacare or health care/insurance in general. Most people still blame insurance companies for high costs and the most naive blame CEO compensation. Give me a break‼


2 replies »

  1. “That” legislation referred to is H.R. 3762, the Restoring Americans’ Healthcare Freedom
    Reconciliation Act of 2015. The current proposed legislation goes far beyond the two year old Republican proposal. See Congressman Tom Rice’s testimony yesterday in his Senate confirmation hearing. It is available (in writing and video) on CSPAN’s web page.

    As an aside, the CBO’s track record is uneven regarding projections. Non-emphasis added.


  2. Dick, it is all about the Benjamin’s – raising revenue to buy votes. Take PPACA/HERA itself. It includes a provision that limits health insurance company tax deductible compensation to $500,000/year. So, based on your experience, you know how folks respond, they don’t cut comp, instead, they top it up/gross it up for the new taxes. And, in turn, a health insurance company has no alternative but to raise insurance rates as needed to cover the increased taxes. So, stupidity and ignorance applies equally to both Democrat and Republican, alike – when it comes to health coverage/insurance.


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