Don't blame Donald Trump! One of the Affordable Care Act's core policies is the reason health insurance premiums are skyrocketing.
By threat of force or penalty..... the democrats favorite idea................
https://www.fool.com/investing/2017/11/11/obamacare-was-destined-to-fail-even-without-trump.aspx
Obamacare was destined to fail, Trump or no Trump
But the fact remains, at least in this writer's view, that Obamacare was destined to fail, regardless of whether Donald Trump expedited the process or not. The ACA's shortcomings can be traced to the implementation and parameters of its Shared Responsibility Payment (SRP).
The SRP is Obamacare's "penalty" for not purchasing health insurance, and it was put in place by lawmakers in order to coerce healthier young adults to enroll. These young adults are a vital component to the ACA's success because of the other mandates attached to the law's passage -- namely, that insurers are required to accept all applicants, regardless of whether they have pre-existing conditions, and are not able to charge them more because of their pre-existing conditions. This pushed medical expenses for health-benefit providers way up. Therefore, the monthly premiums of healthier young adults who were unlikely to head to the doctor much were needed to offset this adverse selection (i.e., the initial uptick in sicker-patient enrollment).
Unfortunately, young enrollment hasn't been anywhere near sufficient for insurers to consider Obamacare a sustainable law. Big losses pushed the nation's largest health insurer, UnitedHealth Group (NYSE:UNH), to cut the number of states it operates in by more than 90% in 2017. Likewise, Aetna (NYSE:AET) and Humana (NYSE:HUM), which had proposed to merge and expand coverage, but were denied by regulators, slashed their county-based coverage in 2017 and announced their complete exits from the ACA marketplace exchanges in the upcoming year.
By threat of force or penalty..... the democrats favorite idea................
https://www.fool.com/investing/2017/11/11/obamacare-was-destined-to-fail-even-without-trump.aspx
Obamacare was destined to fail, Trump or no Trump
But the fact remains, at least in this writer's view, that Obamacare was destined to fail, regardless of whether Donald Trump expedited the process or not. The ACA's shortcomings can be traced to the implementation and parameters of its Shared Responsibility Payment (SRP).
The SRP is Obamacare's "penalty" for not purchasing health insurance, and it was put in place by lawmakers in order to coerce healthier young adults to enroll. These young adults are a vital component to the ACA's success because of the other mandates attached to the law's passage -- namely, that insurers are required to accept all applicants, regardless of whether they have pre-existing conditions, and are not able to charge them more because of their pre-existing conditions. This pushed medical expenses for health-benefit providers way up. Therefore, the monthly premiums of healthier young adults who were unlikely to head to the doctor much were needed to offset this adverse selection (i.e., the initial uptick in sicker-patient enrollment).
Unfortunately, young enrollment hasn't been anywhere near sufficient for insurers to consider Obamacare a sustainable law. Big losses pushed the nation's largest health insurer, UnitedHealth Group (NYSE:UNH), to cut the number of states it operates in by more than 90% in 2017. Likewise, Aetna (NYSE:AET) and Humana (NYSE:HUM), which had proposed to merge and expand coverage, but were denied by regulators, slashed their county-based coverage in 2017 and announced their complete exits from the ACA marketplace exchanges in the upcoming year.
