On Monday, President Obama spoke outside the White House, defending the roll-out of his signature legislative achievement, ObamaCare, aka the Affordable Care Act. He dismissed growing concerns about the launch of the health insurance exchanges by noting that the law "is not a website." As National Journal noted, however, launching the website was the "easy part." ObamaCare can go downhill very quickly.
Team Obama built the most sophisticated voter database and on-line political community in history. Its comprehensive voter outreach operation was able to defy political odds, recreate its turnout breakthroughs from 2008 and win reelection. If Team Obama has any core competency, it is building a seamless, integrated on-line community. Yet, three weeks after introduction, the HealthCare.Gov website is such a disaster that a single person signing up for coverage in Delaware is noteworthy enough to introduce the President for Monday's remarks.
The White House has reacted to the very real problems with the on-line exchanges by announcing a "tech surge." Tapping the best software engineers from the private sector will likely bring near-term improvements to a website that was three years in the making. After several weeks or months, the on-line exchanges will probably be fully functioning. The "kinks" and "glitches" will get worked out. Then, however, the real problems with ObamaCare will come to light.
The foundational problem with ObamaCare is that is relies on people making economically irrational decisions. Namely, young and healthy individuals, who consume very little health care, have to be convinced to buy insurance to subsidize new coverage mandates for older, less healthy consumers. If the young and healthy don't buy coverage, the premiums for everyone else will skyrocket.
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