It is no real surprise that the roll out of Barack Obama’s healthcare proposal – dubbed the “Affordable Care Act” – has failed to garner the results that the government was hoping for. Fraught with technical problems that rendered the Healthcare.gov web site virtually unusable in its infancy, the government-run health initiative has turned into an abysmal failure.
The Affordable Care Act, or Obamacare, has failed because there is very little incentive for our nation’s young and healthy population to signup for the program that provides them with very little benefit. To survive, Obamacare needs healthy people to signup for coverage that they will probably never use.
A Department of Health and Human Services (HHS) report cited only 24% of those who signed up for Obamacare through December were young and health Americans. Worse, of those people who did signup for healthcare under the Affordable Care Act, the report could not account for how many enrollees actually paid their premiums.
The problem: “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,” Reuters wrote in a report earlier in the month.
This seemingly innocuous statement bears further analysis – in order for government-run healthcare to “work”, Washington needs young and healthy people to essentially throw their money away and overpay for health coverage in order to fund the health benefits of other people.
If this healthcare train wreck isn’t the very definition of redistribution of wealth, what is?
Obamacare helps to prove once again that a “free lunch” simply does not exist. Everything needs to be funded, and that funding cannot simply appear out of thin air. When a particular segment of society is screwed into paying for another segment of society, one cannot honestly expect the former to willingly fund the latter.
When the very laws of economics are ignored by our government, big and expensive initiatives like Obamacare fall to the ground. When our government depends on people to fund the very livelihood of others, society quickly rebels in a natural attempt to keep their possessions secure.
Would you pay the cost of a Ferrari to drive around in a minivan? Me either. Why, then, would our government expect young people to pay for coverage they don’t need to fund coverage for someone else?
When one spends their life in government, the laws of economics never apply.