Okay, let’s go over this again. To have stable insurance markets you need a good mix of insured meaning those who use coverage a lot must be offset by insured who use insurance very little if at all.
Given the opportunity, many young healthy individuals will forego insurance until it’s needed. THE REPUBLICAN OBAMACARE REPLACEMENT LEGISLATION IGNORES ALL THAT.
No requirement to carry insurance, tax credits that increase with age and a 30% increase in premiums if you don’t continuously have insurance.
So, the young healthy people skip coverage, the young healthy people get a lower tax credit making coverage less affordable and if they do later buy coverage, there is a 30% surcharge also making coverage even less affordable.To make matters worse their legislation gives the states $100 billion over ten years to do 50 different things to manage health care costs.
I often call liberals naive in their approach to problems, in this case Republicans are blinded by their free market, anti-federal involvement ideology and are not only naive, but outright ignorant.
And as most politicians and policy makers do, they ignore human nature.
Now that Republicans have reportedly dropped their tax breaks for the wealthy, what’s their excuse for doing dumb stuff?