Obamacare is officially the law of the land and apparently not everyone loves it. Yesterday, Tirge Caps from the Daily Kos, a notorious liberal blog site, questioned how Obamacare could be reform when his rates are doubling:
My wife and I just got our updates from Kaiser telling us what our 2014 rates will be. Her monthly has been $168 this year, mine $150. We have a high deductible. We are generally healthy people who don't go to the doctor often. I barely ever go. The insurance is in case of a major catastrophe.
Well, now, because of Obamacare, my wife's rate is gong to $302 per month and mine is jumping to $284.
I am canceling insurance for us and I am not paying any f***ing penalty. What the hell kind of reform is this? (*** added by TAS)
The realities of Obamacare are starting to become apparent. Hardly anyone has signed up for the state exchanges, thereby reducing the ability to leverage lower costs. The IT systems have been fraught with problems. And insurers are starting to release information about inflated health care costs.
Ezra Klein, unabashed supporter of this law, has come out blasting the Obama administration for their inability to get the launch right. Quite fairly, he asks how they managed to screw up this badly when they knew the deadline was coming and claimed this was their priority.
Ultimately, Ezra Klein and Tirge Caps are missing the bigger lesson to be learned here: namely, that the federal government just doesn’t do jobs very well. Yes, there are exceptions (the military, intelligence, and foreign assistance come to mind). However, addressing the problem of rising health care costs by creating a half-measure government program that is dramatically raising premiums for individuals is foolish nonsense.
Further, even if we assume all of the administration’s projections about Obamacare were correct, a self-interested actor such as a health insurance company has just been given the perfect cover for increasing costs. The reality is that uncertainty forces these companies to raise prices in order to secure their long-term outlooks. Indeed, these healthcare providers have no idea what costs are going to accompany Obamacare, so prices rise.
As individuals continue to be hammered by increasing costs, the popularity of Obamacare is going to be nil. The administration would be wise to reform this law as quickly as possible. I would prefer a full repeal, but in the current climate I might as well wish I had a unicorn.