ObamaCare May Be On Life Support If Young Don’t Sign Up

Now that more than 2 million people have signed up for private insurance plans created by President Barack Obama's healthcare law, a crucial next check-up for the new marketplace will be to see how old customers are.

Early data from a handful of state exchanges shows the administration needs more young adults to sign up in the next three months to help offset costs from older enrollees and prevent insurers from raising their rates.
Critics of Obama's Affordable Care Act say the market won't attract enough young people to keep it financially viable, putting more pressure on government funds to compensate for any insurer losses.

Data from seven states and the District of Columbia, which are running their own marketplaces, show that of more than 200,000 enrollees, nearly 22 percent are 18 to 34 years old, according to a Reuters analysis.

The administration had hoped that over 38 percent, or 2.7 million, of all enrollees in 2014 would be 18 to 35 years old, based on a Congressional Budget Office estimate that 7 million people would sign up by the end of March.

"The whole insurance relationship is counting on them signing up," said Dale Yamamoto, an independent healthcare actuarial consultant. "Otherwise rates will have to increase."

The picture from the initial state data is likely to change, since it mostly includes people who enrolled only through November, before a year-end surge of sign-ups for people wanting coverage effective Jan 1. Many experts speculate the early enrollees were more likely to be in urgent need of coverage, and therefore more likely to be older or sicker.

A recent survey by The Commonwealth Fund, a healthcare research foundation, found that 41 percent of those who had shopped at the various state marketplaces by the end of December were ages 19 to 34, up from 32 percent from an October survey.

One marketplace with current data, the District of Columbia, said on Friday that of the 3,646 enrollees in private plans through Thursday, about 44 percent are young adults.

Healthcare experts say many young healthy people may sign up only at the end of enrollment on March 31 to avoid paying the law's penalty for not having health insurance.

Via: Newsmax

Continue Reading....

After Obamacare, ObamaCar Insurance?

The rollout of ObamaCare is, once again, displaying the federal government's adeptness at managing complexity -- a capability already illustrated by the Internal Revenue Service (IRS), Amtrak (FUBAR), and the United States Postal Service (USPS).  Given the extraordinary rollout of ObamaCare, it's time to start moving toward single-payer auto insurance.

Here are two reasons why.

First, auto insurance companies offer a mind-boggling array of pricing options. Their nationwide, indecipherable rate structure cries out for the keen, coordinating skills of the Washington D.C. central planners. 

Second, the spread of telematics applied to vehicle tracking will offer the federal government new surveillance and revenue enhancement opportunities.    

Between 1989 and 2010, the National Association of Insurance Commissioners (NAIC) reported a national average increase of 43.3% in auto insurance rates. (By the way, the new NAIC CEO -- essentially a lobbyist job -- is former Nebraska Senator Ben "Cornhusker Kickback" Nelson.)

Sure, 43.3% is less than the CPI 76% inflation rate increase over those same years, but it's still unfair because the increased costs were not equitably shared. The costs need to be redistributed and, when necessary, supplemented by federal subsidies for those living in high-premium urban areas who can't afford auto insurance. 

Via: American Thinker

Continue Reading....