Saturday, January 11, 2014

A Simple Math Question

 A certain unnamed ObamaCare sycophant told me recently that ObamaCare would cause the very rich to pay more into the insurance pool, therefore helping the poor who cannot afford the extravagant care afforded the very rich. My question is in regard to how that works mathematically?

The very rich already have the best insurance money can buy, or they are simply self-insured in that they pay cash for everything. So those currently buying the best insurance could not purchase more or better insurance as none exists. Thus they will be putting the same amount into the pool as before. The self-insured may be required under the new law to participate in the insurance pool thus these will provide new funds to the pool, but conversely, they will also then use that insurance before dipping into their own self-insurance funds. Thus they will be taking significant amounts out as well as putting funds in. Also since realistically only the evil 1% can afford to self-insure that really is only an additional 1% to add to the pool at most (minus the funds taken out for their care). That means, by my math, at most 1% addition to the insurance pool funding of the country. That still leaves at least 99% of the country with no gain from these additional funds.
 ObamaCare is lauded to provide 30 million with care that did not have it before. (Actually these will now be required to purchase insurance that they were not required to before, with varying subsidies). So as 30 million is about 9.6% of the current US population how do 1% additional funds pay for 9.6% more recipients?
 Raising premiums and deductibles could add significant additional funds to the pool but the Left and the administration has assured us that ObamaCare will actually lower costs, and certainly they would not lie to us about that... especially since the poor are affected adversely by such raised costs far more than the wealthy.
 The new substantial taxes on medical supplies and devices could likewise add funds to the pool, but those taxes are simply passed on to the customers (mostly the poor) thus any funds they save are simply poured back in the other end.
 So, how is this all adding additional funds to the pool?
And btw, are you aware of the potential massive insurance bailout written into the law if the insurance companies incur a significant loss as the Left hopes and the math insures they will? And which economic segment of society do you think will disproportionately shoulder the burden of that massive gift and love letter to the insurance companies?

 Yes, the ginormous insurance companies thank you for your continued generous support.

No comments: