Free Markets, Free People

ObamaCare – proving the critics right daily

In the middle of last week the buzz was all about McDonalds possibly dropping its health care coverage for its employees because of a requirement called the “medical loss ratio” which mandates that insurance companies spend 80 to 85% of the premium on health care.  Because of the McDonalds business model, that’s not possible.

Not to worry we’re told, the administration will work it out with McDonalds.  No word on how those businesses in the same boat but that don’t enjoy the political heft of McDonalds will fare.

Earlier in the week we were alerted to the fact that Harvard Pilgrim Health Care will be dropping coverage on about 22,000 senior citizens in the Northeast.  Again, thanks to ObamaCare, the promise that if you liked your insurance, “you could keep it” was clobbered by the reality of the law.

Last Friday, two new developments foretold by the critics came to pass.

The first is that the Principal Financial Group has made the decision to stop offering health care insurance as a direct result of the new law:

At the Principal Financial Group, the company’s decision reflected its assessment of its ability to compete in the environment created by the new law. “Now scale really matters,” said Daniel J. Houston, a senior executive at Principal, which is headquartered in Des Moines. “We don’t have a significant concentration in any one market.”

The decision will affect approximately 840,000 Americans.  Principal’s insurance product was mostly offered through employers.  It’s assessment of the law and what it would cost the company gave it no choice but to quite offering the product.

“If you like your insurance, you can keep it.”

Finally, another problem that critics of the sweeping health care law said was as inevitable as Principal’s decision.  A report today says ObamaCare will worsen the doctor shortage:

The U.S. healthcare reform law will worsen a shortage of physicians as millions of newly insured patients seek care, the Association of American Medical Colleges said on Thursday.

The group’s Center for Workforce Studies released new estimates that showed shortages would be 50 percent worse in 2015 than forecast.

"While previous projections showed a baseline shortage of 39,600 doctors in 2015, current estimates bring that number closer to 63,000, with a worsening of shortages through 2025," the group said in a statement.

Legislation passed by Congress is always criticized by some faction or another.  Rarely, however, is it ever 100% correct.  But in the case of ObamaCare, that may change.  Thus far almost every criticism and warning leveled by the opposition to this monstrosity has been shown to be true.  Unfortunately we’re just now beginning to see its impact. 

Stay tuned for more and more of the critics arguments to be proven right as we wend our way into this almighty mess created by Congress and the President.  Today’s news is reason enough to jettison the entire mess as soon as the numbers line up correctly in Congress and the right person is in the White House.  Hopefully we’ll only have to wait a couple of years for that all to be in place.

Read more at the Washington Examiner:

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10 Responses to ObamaCare – proving the critics right daily

  • Normally a shortage of goods/services rasises the cost/price of those goods/services, thereby attracting investment that increases the supply. With ObambiCare keeping a lid on salaries, I don’t see a market signal that will encourage more people to enter the medical profession.

    • Once upon a time they could have ‘fixed” that problem by throwing money at it. Then they would get the bill, and “fix” that problem by reducing the money flow . . . back and forth, as required.

      Alas at this point there is no money to throw at it . . .

      Keep in mind, “Dr fix” was supposed to be passed by now.

    • don’t see a market signal that will encourage more people to enter the medical profession.

      They have ruined becoming a doctor. I caught a story today that “Big Law” is going to cut 25% of the lawyers over the next two years. High tech jobs are moving to India and China.
      When a child asks … what should I grow up to be ? Frankly, I have no idea any more

      • The answer is really obvious:

        Community Organizer

        I mean, really: name any other career track which will pay you fairly well for doing a whole lot of nothing AND offer the prospect of becoming President of the United States.

        • Serious question:  Who actually pays a community organizer.  Amidst all the secrecy of Obama’s history, no one ever seemed to say who he worked for when he was a community organizer.

          • “no one ever seemed to say who he worked for when he was a community organizer.”
            Manchurian Candidates Inc.

    • A shortage of doctors and medical services can be used by government to repeal Obamacare… or it may give them the opportunity to ‘rescue us’ via implementation of a single payer system and a government takeover of the medical industry.  As others have stated here before, it’s possible that the current negative effects of Obamacare were not only foreseen by its proponents, but hoped for.

      • I though some of Obama’s people in fact basically said the point was to move towards single payer, in response to the left’s hissy fit that Obamacare didn’t do that right away.

        As I posted elsewhere, socialized medical care won’t work in America. It is failing everywhere, it will fail here quickly.

  • A few years ago my primary care physician quit his practice to get into the music business. Just another way Obamacare will produce shortages.