For the poor the cost of the doctor's visits simply isn't a concern since the old adage remains that you can't squeeze blood from a turnip. At the higher income levels the the savings for not buying insurance are greater than the out of pocket expenses for a doctors visit.
Let's look at someone making $80,000. In the first year of the penalty she could either pay $3,800 for insurance, or $895 in penalties. If she chose to take the penalty she would have $2,905 free and clear to pay medical expenses that year. The average doctor's visit is about $300. She could see the doctor 9 times that year, pay out of pocket, and still come out even.
If people are chronically ill then obviously they would weigh their annual costs versus savings... but there in lies the critical flaw in the Obamacare system: It only makes sense to participate in the new system if you spend more on medical bills than the cost of insurance. But those people are a net loss for insurance companies to insure, so they can only afford to insure them because all the healthy people who don't go to the doctor also buy insurance, and are a net positive cash flow for the insurance companies. Under the Obama plan those people who are not chronically ill would be foolish to buy insurance.
Without a change to the cost of the penalty I give them three years. The government will shell out hundreds of billions trying to keep the insurance industry afloat, but saving them in this stupid new system would break the bank.How many years until health insurance agencies fail to survive?
Anyone who thinks Obamacare threatens the insurance industry should keep in mind that the insurance industry wrote the bill.
Last edited by Deuce; 06-14-13 at 08:39 AM.
One of you will end up here next!
I AM DEPLORABLE.
NEVER CRIMINAL HILLARY (S-NY)