From the Department of I Told You So
The subdepartment of “If You Like Your Coverage, You Can Keep Your Coverage“:
Small companies are starting to turn away from offering health plans as they seek to reduce costs and increasingly view the health law’s marketplaces as an inviting and affordable option for workers.
In the latest sign of a possible shift, WellPoint Inc. said Wednesday its small-business-plan membership is shrinking faster than expected and it has lost about 300,000 people since the start of the year, leaving a total of 1.56 million in small-group coverage.
Of course anyone with a brain and a passing understanding of economics and human nature saw this coming – despite the assurances of our elites. It is called “responding to incentives or disincentives” – something human beings have done since the dawn of our time.
Provide enough of a disincentive to maintain the status quo and you won’t. You’ll go with what is best for the business. And the incentive to drop health care plans has been provided by this awful ACA law. Now these people will go onto the exchanges and pick a plan with huge deductibles that will never be met in a year. They’ll effectively pay for their medical care. Or, we’ll pay for their medical care through subsidies.
Result? Well, as you can imagine with huge deductibles, people will likely go to the doctor less and one of the supposed reasons this law had to be passed was in order to stress and implement “preventive medicine”. But if you have a $6,000 deductible, and are a middle income family that wouldn’t qualify for subsidies, when are you going to visit the doctor? When whatever problem you have is so bad you have little choice. Of course, that’s the most costly way to do this, isn’t it?
So now we have a huge problem, don’t we? And what will we point to as the cause of that problem? That’s right … government intrusion. Oh, the good news? Their high deductible coverage will be portable. But we could have solved that problem without ever creating this health care monster we’re stuck with now, couldn’t we?