ACA/Obamacare: The Death Spiral of Rising Prices

John Goodman Discusses ‘Insurance Death Spirals’ in Relation to Obamacare

The Young Shun Obamacare: Scheme Assumption Threatens Insurance “Death Spiral”.

"Mounting opposition to ObamaCare among young adults is creating a new crisis for the White House.

While the federal enrollment website HealthCare.gov appears to be improving by the day, polls show the “young invincibles” key to making the law work are becoming less likely to enroll.

Younger people were skeptical of the healthcare reform law even before its troubled rollout, despite their support for President Obama.

But polling indicates the problems facing HealthCare.gov — a site the administration initially touted as a hip, tech-friendly experience — have reinforced their doubts about the need to have health insurance at all.

“The trend is daunting for the White House but not necessarily surprising,” said Pew Research Center Director Michael Dimock.

“Younger folks are part of Obama’s base ... but the rollout confirmed concerns that were already in their minds.”

A poll released Wednesday by Harvard University’s Institute of Politics found that more than half of 18- to 29-year-olds disapprove of ObamaCare and believe it will raise their healthcare costs.

Even more troubling for the administration is that less than one-third of uninsured young people said they plan to enroll in coverage.

Without a large number of young, healthy people in the insurance exchanges, it could create a “death spiral” of high premiums that could threaten the long-term viability of the marketplaces." - Young invincibles spurn O-Care, 12/04/2013, the hill.com

　

Link to the entire article appears below:

http://thehill.com/blogs/healthwatch/health-reform-implementation/192132-young-invincibles-spurn-enrollment


　

　


　

　

Investors Business Daily: Will Only Suckers Buy ObamaCare Insurance?

“At the same time, ObamaCare also forbids insurance companies from turning anyone down — a reform called "guaranteed issue" — which also will provide an incentive for some to drop coverage, knowing they can get it back any time.


"Even with the tax penalty ... some healthy people would avoid purchasing coverage until they are sick," Howard Shapiro, director of public policy at the Alliance of Community Health Plans, told regulators .

The problem is that if the young and healthy drop coverage, the result would be what the industry calls a "death spiral." Premiums will climb as the pool of insured gets sicker, causing still more to cancel their policies.


This is just what happened in states that imposed strict community rating and guaranteed issue reforms in the past. In fact, of the eight states that did so, most ended up either dropping the reforms or loosening the rules after they saw enrollment decline and premiums climb.”


Entire article appears in the link below:


http://news.investors.com/021913-644948-only-suckers-will-pay-with-obamacare-plan.aspx?ref=HPLNews