What Should They Do?

2015 November 23
by drdog09

What’s going on here? Basically, the long-feared “death spiral”: Not enough young, healthy folks are signing up for these plans, so insurers are losing money despite the hefty federal subsidies for the coverage. They’re raising premiums to even things out — but that drives even more folks away, so that only older, less-healthy customers remain, driving new losses . . .

Looking at the collapse of the ObamaCare “cooperatives” a few weeks back, Betsy McCaughey warned in these pages that the death spiral was under way.

Now here’s America’s biggest insurance provider saying pretty much the same thing. Hemsley cited weak enrollment and high medical costs for those who did sign up.

And the Obama administration itself last month predicted 2016 enrollment would be less than half of what the Congressional Budget Office predicted in March.

Republicans have been tossing around plans to replace ObamaCare from the start. Now it’s time for Democrats to join in — unless they want to get caught looking when the whole thing goes belly-up.


If OCare does implode which is surely to do, there are political considerations, though there should not be, as this should be a problem for the markets.

In a saner time, let it collapse and do nothing and hand it back to the Democrats to revel in the mud. But alas the Democrats solution would be single payer and govt everything ala British NHS. Which sad to say is clearly in the grips of self destruction as well. So the first consideration for the GOP is that in OCare’s wake they cannot let the Dims get anywhere near what comes after.

People can come up with all sorts of ideas but how about something simple? If the medical costs exceed one third your annual salary you are able to write down your AGI by that amount and carry the ‘loss’ forward in subsequent years. A hidden subsidy? Sadly yes. But it flushes away the bureaucracy that was hanging around OCare. And remember, 80% of the public carries health insurance.

Other ideas?

32 Responses leave one →
  1. 2015 November 23 7:42 am
    justrand permalink

    Gonna be traveling this week…so not much time to weigh in. So I’m counting on ya’ll to keep the world from falling apart until I can get back home and hunker down! 👿

  2. 2015 November 23 8:19 am
    drdog09 permalink

    Well deposing Obama would be a good start to righting the world….

  3. 2015 November 23 8:52 am
    drdog09 permalink

  4. 2015 November 23 9:00 am

    3 – hilarious

  5. 2015 November 23 9:06 am
    bc3b permalink

    Another factor is subsidies for the poor and those with serious medical conditions. Healthy young people enrolling was supposed to offset the cost of subsidies and, as drdog09 writs, this ain’t happening.

    It’s much like Social Security. In 1935, when Social Security was enacted, the average US life expectancy was 62, so the gamble was that most people wouldn’t live long enough to collect. We all know how that turned out.

  6. 2015 November 23 9:07 am
    bc3b permalink

    JR –

    Don’t forget to get your football picks in before you leave.

  7. 2015 November 23 9:24 am

  8. 2015 November 23 9:54 am
    drdog09 permalink

    Trump fills AL convention center — https://www.youtube.com/watch?v=kmPqV41bfC0 — watch it later, its a long vid.

  9. 2015 November 23 11:00 am
    drdog09 permalink

    android security news — http://www.zdnet.com/article/yes-google-can-remotely-reset-android-passcodes-but-here-is-the-catch/?tag=nl.e539&s_cid=e539&ttag=e539&ftag=TRE17cfd61 — Just be aware. Its not new, but has not been publicized like it was with Apple.

  10. 2015 November 23 11:17 am
    bc3b permalink

    The media and the GOPe are so desperate to stop Trump that they are pushing Ted Cruz as this week’s “not Trump” candidate.

  11. 2015 November 23 11:36 am

    11 – Yup, I noticed that in recent days, he’s clearly their fallback of last resort.


  12. 2015 November 23 1:39 pm
    JimMtnViewCaUSA permalink

    11: how desperate they must be to stoop that far 🙂

    I’ve read that the Repub beltway has resigned itself to O’Care. It’s too deeply engrained now, or something. If the “leaders” do nothing and O’Care collapses, then what? Do the Dems move us to single-payer?
    That would suck.

  13. 2015 November 23 1:43 pm

  14. 2015 November 23 2:02 pm
    bc3b permalink

    JimMtnViewCaUSA –

    Welcome to BJG.

    The US Chamber of Commerce and big business, which call the shots for the GOPe, now favor ObamaCare (or a similar government program) because it reduces benefits costs.

  15. 2015 November 23 2:07 pm
    bc3b permalink

    Reminder: This week’s BJG College and NFL pick sheets were emailed yesterday. They are due Wednesday night.

    There are lots of competitive college and pro games this week. The NFL teams are through with their bye weeks so the number of college and NFL games has been expanded this week to make the final weeks more competitive.

  16. 2015 November 23 2:34 pm

    16 – Of course, just as they designed it to fail, Trojan horse to single payer.

  17. 2015 November 23 2:38 pm
    drdog09 permalink

    Chits coming home to roost? — http://www.tfmetalsreport.com/blog/7287/rats-and-sinking-ship — A slow run on gold out of the vaults. (careful in extrapolating too far, the author is a gold bug.)

  18. 2015 November 24 7:13 am
    justrand permalink

    Bx3b…I didn’t have a chance to do my “exhaustive research” for my football picks…so just put me down for EVERY HOME TEAM, in college and NFL

    In theory, I can’t do any worse than I have been. 🙂

  19. 2015 November 24 7:44 am
    drdog09 permalink

    Bezos beats Musk — http://www.techinsider.io/blue-origin-reusable-rocket-video-2015-11 — If Blue Origin can make landing a rocket whole a repeatable event this is a monumental step in reducing lift costs.

  20. 2015 November 24 8:07 am

    “rebels” supposedly hitting Russian S&R chopper (searching for downed pilots) after landing with TOW.

  21. 2015 November 24 9:27 am
    drdog09 permalink

    26, Am I dreaming or did I see german markings on the launch set?

  22. 2015 November 24 10:37 am

    27 – You are not dreaming, I saw the same, I figured they were originally sourced from NATO stockpiles (->Libya->Syria).

  23. 2015 November 24 10:53 am

    U.S. made BGM-71 TOW. Been around since vietnam days. Probably part of the stuff we gave iraq.


  24. 2015 November 24 12:22 pm
    bc3b permalink

    My sincere hope is that the Russians kill as many Muslims as possible (the supposedly moderate ones we are aligned with as well as ISIS).

  25. 2015 November 24 3:56 pm
    JustMary permalink

    One of several Biblical prophesies yet to happen is the destruction of Damascus. I always thought Israel would do it (or at least get blamed for it), but maybe it’s Russia.

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