ObamaCare Will Lead to Insurance “Death Spiral,” Study Says
Under ObamaCare, beginning next year insurers must accept all applicants regardless of pre-existing conditions and must charge them the same rates for the same coverage. Everyone — including proponents of the law — knows that under such conditions, most of the people who have heretofore been unable to obtain insurance because of pre-existing conditions will immediately purchase policies. This will result in a sudden, steep increase in the benefits that insurers must pay without a corresponding increase in premiums, and that can only be bad news for the insurance industry.
What the industry needs, therefore, is a large pool of healthy individuals also to enter the market. These people will pay premiums but rarely draw benefits, thereby subsidizing the benefits of the newly insured sick.
ObamaCare is only going to make it a worse deal, driving rates for the young and healthy even higher. “The...