*** 6-Nov-15 World View -- Obamacare prices skyrocketing in 2016, as I predicted in 2009
This morning's key headlines from
GenerationalDynamics.com
- Doctors prepare to strike UK's National Health Service
- Veterans' medical services continue to worsen since 2014 scandal
- Obamacare prices skyrocketing in 2016, as I predicted in 2009
- Kentucky's new governor Matt Bevin promises to end Obamacare abuses
- Four more Obamacare co-ops collapse in the last week
- Obamacare 'risk corridors' are also collapsing financially
****
**** Doctors prepare to strike UK's National Health Service
****
Sign announcing the closure of Kentucky's Nicholas County Hospital because of Obamacare-related bankruptcy (USA Today)
Members of the UK's far left British Medical Association (BMA) labor
union will vote on whether to go on strike on November 18 against the
National Health Service (NHS). The vote was called after the union
rejected a last-ditch pay offer by the UK government that increased
pay by 11% and reducing the maximum work hours per week to 72 from 91.
As I wrote in
"5-Aug-15 World View -- Britain's National Health Service (NHS) faces existential financial crisis"
, UK's government-run single-payer health
system is facing a financial disaster, with a deficit of over $3
billion in 2015-16, and growing rapidly. Furthermore, with so much
money involved, the NHS is filled with criminality and fraud. As a
result, the NHS faces cutbacks on staffs, increases in waiting times
for appointments that are already measured in months, and cutbacks in
services.
Because the NHS bureaucracy is so old and bloated, and because the
services are "free," costs can only be controlled by rationing,
queuing, reduced quality and artificial cost suppression. UK's
doctors earn far less than doctors in other countries, and UK
specialists earn about half of what they do in America. As a result,
UK's homegrown doctors have left to work in other countries, and NHS
has had to import 28% of its doctors from abroad, usually from poorer
countries where low UK salaries look attractive.
Oxford Mail and
Telegraph (London)
****
**** Veterans' medical services continue to worsen since 2014 scandal
****
The American version of Britain's NHA is the Veterans Administration
(VA), a government-run single-payer system providing "free" medical
services to veterans. Last year, a major scandal found major fraud
and criminality in the VA healthcare system, with VA offices
systematically lying about waiting times and treatment outcomes.
Since then, billions of dollars have been poured into the Veterans
Administration, but as in the case of the NHS, the extra tsunami of
money is disappearing, and services are continuing to get worse. At
the Phoenix VA medical center, which was the epicenter of the 2014
scandal, appointment times and fraudulent activities continue to
worsen, with the center using complicated wait-time calculations to
obscure ongoing appointment delays.
According to one whistleblower, "The reality is veterans are waiting
months -- three, six months at a time, sometimes more -- for care at
the Phoenix VA" -- and this includes critical health procedures, such
as colonoscopies.
In August, more than 8,000 requests for care had wait times longer
than 90 days at the Phoenix VA, and even those figures are low because
deceptive methods for measuring wait times.
Even worse, whistleblowers continue to receive vicious retaliatory
treatment for complaining. The Veterans Administration is no longer
in the news every day, but the fraud and criminality is just as bad,
and probably worse.
CNN and
Military Times and
CNN (13-Apr-2015)
****
**** Obamacare prices skyrocketing in 2016, as I predicted in 2009
****
Inflation rate following the imposition of wage-price controls on August 15, 1971 (Source: econreview.com)
In July, 2009, when Obamacare was first announced, I wrote that
Obama's health plan is a proposal of economic insanity.
I compared it to President Richard Nixon's
wage-price controls, and I predicted that it would just as much an
economic disaster as Nixon's price controls.
Nixon's price controls were imposed in 1971 because the inflation rate
was around 4%. The purpose of the price controls was to lower the
inflation rate to 2%. It took three years for the inflation rate to
surge to 12%.
In 2009 I said that Obamacare was no different, at its core, than
Nixon's price controls, and that the same kind of disaster would
recur. I repeated that comparison many times. (
"1-Dec-13 World View -- Obamacare: 500M lines of code, $500M, only 60% completed"
) Obamacare was
imposed in 2013, and now it's in its third year, Obamacare prices are
surging.
For the first two years, Obamacare premium price hikes were very
modest, just as the inflation rate was very modest in the first two
years of Nixon's price controls.
But now, for 2016, Obamacare premiums are skyrocketing, again like
Nixon's third year. 231 insurers requested double-digit percentage
premium price hikes for 2016, as opposed to just 121 in
2015. Furthermore, the magnitude of the hikes will be much greater in
the upcoming year. A whopping 126 plans aimed for a minimum 20%
premium hike, 61 plans attempted to justify a 30% premium boost, 26
policies are targeting a 40% price jump, and a dozen plans actually
requested a 50%-plus premium jump for 2016.
Taking all plans into account, premium prices are rising 20.3%, much
worse than the 12% disaster following Nixon's price controls.
Administration officials are bragging that Obamacare premium costs for
the cheapest plan, the Silver Plan, increased only 7.3%. (I recall
similar deceptions argued by Nixon's supporters in the 1970s. That's
like saying that the inflation rate may be 12%, but the price of
tomatoes only rose 7%.) When you look at the entire Obamacare
marketplace, premium prices are rising 20.3%.
Forbes and
Daily Caller
****
**** Kentucky's new governor Matt Bevin promises to end Obamacare abuses
****
In what is being called a bellwether election, a Tea Party Republican,
Matt Bevin, this week unexpectedly won the election for governor on a
platform that included repeal of Obamacare.
The mainstream media are appalled. Here's what left-wing writer
Jordan Weissmann wrote in Slate:
<QUOTE>"Kentucky voters elected Republican businessman Matt
Bevin as their new governor on Tuesday, which sadly means a whole
lot of people are probably about to lose their health
insurance. The Tea Party favorite has promised to roll back pieces
of the Affordable Care Act that have helped slash Kentucky's
uninsured rate by more than half according to Gallup, the biggest
drop of any state in the country since the law's major planks were
implemented.
Oh well. 'Twas a happy story while it lasted."<END QUOTE>
I can only think that Weissmann is a recent college graduate, that he
majored in something like sociology or women's studies, and that he
can't even spell the word "economics."
Obamacare has been an unmitigated financial disaster for Kentucky, as
I described in my August article,
"Healthcare.gov -- The greatest software development disaster in history", which I posted after months of extensive research.
I wrote extensively about what happened to Kentucky. Here's a short
list of the devastation:
- Kentucky hospitals are losing $1 billion because of
Obamacare's Medicaid expansion. - Most newly insured -- 75% -- use Medicaid, which only pays 82% of
the actual medical costs, and updates are not keeping up with
inflation. This is costing hospitals an additional $135 million per
year. - Since the onset of Obamacare, bad debts have increased by $200
million, largely because patients can't afford the $10,000+
deductibles. - For every $100 that Obamacare collects in Kentucky, it has to pay
out $121 to deliver the care. That alone explains why Obamacare is a
financial disaster for Kentucky. - Some Medicaid plans pay hospitals on $50 for an emergency room
visit, even though the services cost thousands of dollars. As a
result, emergency rooms are going to have to restrict accepting some
patients on Medicaid. - Because of Obamacare, there was a 10% reduction in statewide
hospital workforce, for a loss of 7,700 jobs. Nearly 2/3 of the lost
jobs were for rural hospitals. Some hospitals will be forced to
close.
Matt Bevin won because he wants to bring this disaster under control.
Obamacare acolytes like Weissmann are appalled because they're too
stupid to understand simple economics.
Louisville (Ky) Courier-Journal and
USA Today (8-May-2015) and
Slate
****
**** Four more Obamacare co-ops collapse in the last week
****
As I
wrote two weeks ago
when the
Colorado Obamacare health insurance co-op collapsed, these co-ops are
almost unbelievably hare-brained entities designed to be non-profit
and provide competition to the evil corporate insurance companies.
(Read my
August article for
further details on Obamacare co-ops.)
Co-ops have been paying out $1.10 to $1.60 in benefits for each dollar
they received in insurance premiums. They got away with this because
they were supported by federal Obamacare slush funds - which are now
running out.
During the last week, co-ops collapsed in four states: South Carolina,
Utah, New York, and Michigan. There are 23 Obamacare co-ops in all,
and that makes 12 of them that have collapsed.
California Health Line
****
**** Obamacare 'risk corridors' are also collapsing financially
****
Another hare-brained Obamacare scheme is the "risk corridor" program,
which is supposed to collect excess profits from profit-making
insurers, and give the money to insurers losing money. As jaded and
cynical as I am, this thing is so incredibly stupid, even by Obamacare
standards, that I can barely believe it. Once again, read my
August article for further
details.
Just in time for this article, Standard and Poors said on Thursday
that the risk corridor program is facing a massive cash shortage, with
only $1 to cover every $10 in claims.
Once again, it's time to recall the words of that great Obamacare
architect, MIT professor Jonathan Gruber, who said: "Call it the
stupidity of the American voter or whatever. But basically that was
really, really critical to getting the thing to pass." He wasn't
talking about me. He was talking about Obamacare supporters. And he
was absolutely correct.
The Hill
KEYS: Generational Dynamics, Britain, National Health Insurance, NHS,
Veterans Administration, Obamacare,
Richard Nixon, Nixon's price controls,
Kentucky, Matt Bevin, Obamacare co-ops, Obamacare risk corridors,
Jonathan Gruber
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