Friday, January 11, 2013


ObamaCare's "death spiral" has begun! As reported by The New York (LIBERAL)Times… “Health insurance companies across the country are seeking and winning double-digit increases in premiums for customers, even though one of the biggest objectives of the Obama administration’s health care law was to stem the rapid rise in insurance costs for consumers.” This phenomenon comes as no surprise to anyone who has been following legal and moral opposition to ObamaCare. Please see my urgent message below The New York Times (NYT) report is stirring both supporters and detractors of the President’s takeover of America’s healthcare system. From our point of view, what is extraordinary is the Times’ conclusion that calls for even more government control! Simply stated, The NYT suggests that the double-digit increase in healthcare premiums is because federal regulators do not have enough power to control rates by insurers – although the written code of ObamaCare has over 2,700 pages of regulations, including ponderous guidelines for rates! This doesn’t even take into consideration the thousands of pages of subsequent regulations that are being enacted by unelected bureaucrats at the Department of Health and Human Services (HHS). Ascertaining that the federal government doesn’t have enough power yet is moving past a socialist viewpoint into full blown, iron-fisted communism! More reasonable voices weighing in on the debate rightly contend that the rate hikes stem from ObamaCare’s new mandates, which cost the insurers more money – like providing free contraception and abortifacients – and forcing insurers to accept any pre-existing conditions. The higher cost of these mandates is coupled with the fact that young people, who are the backbone of an insurer’s profit margin, are not buying health insurance. ++The ObamaCare “death spiral” has begun. In 2014 when ObamaCare is fully implemented and healthcare rates continue rising, it’s likely that more and more of the insurers’ desirable young people – who don’t see themselves as needing health coverage – will likely pay the tax (penalty) instead of purchasing insurance. As Philip Klein, Senior Editorial Writer of the Washington Examiner, reported yesterday… “Should premiums continue to rise, more and more uninsured Americans are going to choose to pay the penalty rather than purchase expensive insurance. And those who go without insurance are more likely to be the ones who can afford to do so – young and healthy Americans with limited medical expenses. “Should this occur, insurers would have to raise premiums even more to subsidize the expenses of the sicker beneficiaries they must cover under the law. This, in turn, would cause additional people to forgo insurance and pay the fine. And so on. This is known in the health care policy community as the “death spiral” and it’s one of the biggest threats to the structure of Obamacare.” The more ObamaCare is unveiled, the less Americans like it – and the more the healthcare industry is traumatized by it. That’s why Nancy Pelosi said we would have to pass the law to find out what’s in it. It’s being written day-by-day by federal bureaucrats as we go! That’s why the best way of stopping it is in the courts. If an ObamaCare “death spiral” would take ObamaCare to its knees, I would be all for letting it play out. But the administration clearly intends to write “fixes for fixes for fixes” to keep the new healthcare law’s implementation moving forward. And Obama's ultimate plan is to create a crisis and then have the government rush in and take over the entire healthcare system.

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