The Death Spiral Of Obamacare

November 19, 2013 12:22 pmViews: 1345

I know, call it the "Affordable" care act

Not only is there a serious problem with the roughly ten percent of expected numbers of people who have signed up for the Obamacare program, but there exists a fundamental flaw in this system that will more than likely cause the entire sham of a program to implode in very short order.

Just short of printing money to keep the disaster of Obamacare afloat, the program is ultimately doomed to failure. It simply cannot succeed unless people are forced to sign up in droves at gunpoint.

Barack Obama has presided over the largest growth of social programs in our nation's history. Under his watch food stamp enrollment has increased by a staggering 70% with 48 million people now using this government subsidy to feed their families. Medicare costs and fraud are up under Obama. Unemployment compensation has been drastically expanded under Obama. And the list goes on.

So what does this have to do with the collapse of Obamacare? The president's signature legislation, the legacy of his disastrous presidency will be facing the so-called "death spiral" much sooner than later because Barack Obama has created and grown the dependent class like no other American leader in history. The reality is, those are the people who have already signed up and will be signing up for Obamacare. They will sign up because they need it. They will sign up because it will be subsidized for them. They will sign up because many think it will be free. These are the people who will get much more out of the system than they will ever put into the system

The people Obama needs to sign up, the people who must fund this monstrosity, those who need to put more into the system than they get out of it, will not be signing up.

The young, healthy and rarely sick who will not need the services Obamacare touts for another 20 to 30 years will not bother to sign up for a program they don't need and unfortunately for Barack Obama and the Affordable Care Act this is called the death spiral.

Barack Obama created it and he has to live with it and watch it collapse before his very eyes. Our President has presided over a society so dependent on government, the very program he created to take care of our health can never be adequately funded.

Now here's the warning: Watch out for the fix.

Read more from Defining Ideas below:

It has been a tumultuous two weeks since I last wrote about the Obamacare’s moral blindness. The President’s dismal performance since that date has only confirmed my initial impression. He has refused to take full responsibility for the key policies embedded in that legislation. He has also endorsed naïve short-term fixes that do nothing to correct the fundamental designs of the Affordable Care Act.

Those two errors will give way to two larger public debates, one constitutional and one social. First, should the President’s new proposals be subject to attacks under the oft-discredited doctrine of substantive due process? Second, will the failures of Obamacare require a massive leap to a single-payer system to avert a return to some status quo ante that is morally and socially intolerable? It’s clear that we need to kill Obamacare and avoid a single-payer system at all costs.

The President’s Listless Apology

The President’s November 14 press conference reveals that he is unable to come to grips with the fatal flaws of his healthcare program. He claims that “in the first month, nearly a million people successfully completed an application for themselves or their families.” Deconstructed, what that really means is a paltry 27,000 people have been able to get coverage on the federal exchanges and some 79,000 others through the state exchanges. The million-person figure includes the 975,000 people deemed “determined eligible” for coverage that they have not purchased but, he assumes, they soon will.

The President thinks this shows the pent-up demand for his program. But he hasn’t addressed the composition of the applicant pool, which clearly attracts individuals with known healthcare conditions who will receive extensive public subsidies to join the ranks of the insured. There is no way that the government exchanges can remain viable without attracting large numbers of healthy young persons, all of whom are well-advised to stay away in droves, until they become sick and can sign up with the plan of their choice, no questions asked. Obamacare can only remain solvent with an enormous public subsidy. But the President compares apples to oranges when he disparages the private plans he considers substandard while he praises the efficiency of the public plan, even though it will require public subsidies. To him, taxpayer costs don’t matter.

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