Now that Obamacare has actually been unleashed on the unsuspecting American public, there is mass speculation about whether it will succeed as a program. Each political side presents its arguments with many former supporters caught in the middle. But if you understand how insurance works, it is basic that the program cannot work without even more coercion than is in the law as presently constituted.
Prior to the passing of this massive law, there was a basic pattern how health insurance matters worked in most states, which is where these decisions were made. The state had an insurance commissioner to oversee insurance companies. The state legislatures would establish laws regarding health insurance policies which were far more extensive than for auto or homeowners’ insurance. The legislature would be lobbied by either a special interest group or by a few “suffering” souls, and new mandatory benefits like chiropractors or maternity care would be included in each policy. Basic policies were larded up with so much that affordability became difficult for families or businesses. Choice became limited as rules became dictated and basic catastrophic policies became limited in their availability.
With all that being said, the insurance companies never breached certain taboos which they knew would break the bank and make policies soar beyond any reasonable economic sense. It was not because the insurance companies were just cold, heartless corporate animals. These benefits were not part of policies because the people who operate insurance companies knew through sophisticated mathematical analysis they would have to charge such outlandish fees that the average person would be overwhelmed financially.
In step the Democrats of Washington who had a guiding light – equality. Everyone should bear the burden equally for the minority who cannot instead of addressing those individuals in a different manner.
There are many “benefits” that were mandated by Obamacare, but three were particularly financially unsustainable or corrupting:
1. The lifting of lifetime caps on benefits: The insurance companies never did this because they cannot calculate what their potential outlays would be in the future to be able to estimate what should be properly charged to policy holders. They are shooting at an unknown and moving target. They now have no choice but to jack up premiums to cover the potential costs.