Obamacare is a total catastrophe.
Premiums are skyrocketing, deductibles are climbing higher at every policy renewal, the insurers are running from the exchanges to avoid going broke, and consumers are losing options, coverages, providers, and doctors. Federal expenditures are increasing exponentially. The Obamacare fuse is burning ever shorter, and the only reason it didn’t blow up already is because the Dems postponed the worst part of it until 2017 (not coincidentally, after Obama’s term). The entire healthcare system will continue to meltdown unless somebody does something about this onerous mandate, and Republicans are torn between trying to save the existing system or putting a bullet in its head. It should be called “Fukishimacare,” because that describes this program much more accurately.
President Trump doesn’t have a “plan” (even if he calls it that), but he does have a healthcare “goal.” And it’s up to the legislature to craft the plan that can meet his goal. But in this case, neither the Republicans, Democrats, nor God himself can craft a program that will do what they hope to achieve.
There is just no way that health insurance can cover everybody, all the time, for everything, unless the money coming in equals more than the money going out. That’s called capitalism. Obamacare is not “insurance,” it’s a new federal entitlement that is poorly disguised as a plausible business operation. Just like social security, medicare, medicaid, food stamps, earned income credits, and every other grossly underfunded entitlement program – Obamacare is an infant bankruptcy looking for a place to roost. The Obamacare dog won’t hunt, ever.
And this is why: The Office of the Actuary in the Centers for Medicare & Medicaid Services projected that the National Health Expenditure spending in the U.S. in 2016 was about $3.3 trillion. This amount includes healthcare expenses paid for by government ($1.5 trillion) and by private insurance and out-of-pocket by patients ($1.8 trillion). The 2014 U.S. population was 319 million. Do the math. This means that the government spends about $5,000 on healthcare for each person in the U.S., every year. And the people themselves spend another $6,000 per person, every year. That means that the total expenditure for healthcare is about $11,000 per year for each and every man, woman, and child in the U.S.
If the premiums were to cover 100% of those costs, a family of four would be paying $44,000 per year for health insurance. In 2015, the US per capita income was $29,979. So, the only way to make government healthcare “affordable” is to either reduce costs or reduce coverage. Pre-existing condition exclusions, lower reimbursement rates to providers, and lifetime caps are all designed to bring the costs down in relation to the revenues, but admitting those things is politically unacceptable, and raising taxes to increase revenues is unmentionable.
Total federal revenue from all sources in fiscal year 2015 was about $3.2 trillion. That being the case, nearly half of the entire federal budget is presently expended on less than half of America’s healthcare costs. See the problem?
The reason it won’t work isn’t about the politics, it’s about the economics.