California’s too-low-to-be-true-prices for ObamaCare
Ezra Klein, the White House’s personal ObamaCare flak, refuses to write about anything but a positive spin on ObamaCare or, in the alternative to silence, will attack those who are scoring points against ObamaCare.
His latest piece has in it’s title, “Very Good News for ObamaCare,” since “very good news” and ObamaCare don’t usually go together in a newspaper or online headline.
He is touting the prices for the California exchange, not mentioning that three of the largest insurers have decided not to participate in the California exchange.
Here is the reality about the California prices, every insurer who will participate using these prices will lose so much money that they will pull out within two years.
The announced prices are just like the ObamaCare law, they assume the young and healthy will out number the less healthy that swarm ObamaCare.
The prediction about insurers losing money is not my own, but is based on what has happened in every other state that has tried guaranteed issue and community rating, where the young are forced to carry the burden of high premiums to lower the premiums of older, non-Medicare Americans.
Of course, liberals simply reject out of hand this analysis.
The reality of these too-low-to-be-true-prices is far more difficult for ObamaCare supporters to square with the great swath of actuarial science predicting otherwise, and the only way that insurers will stay in the California exchange after the first year, will be if massive premium hikes are allowed by the government.
Time will tell this tale better than me or Ezra.