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AP: Canceled Polices Are A Good Thing (Really!)

From an utterly shameless Associated Press:

Canceled policies could be a plus for new markets


WASHINGTON (AP) — Insurance cancellations are fueling a political backlash against President Barack Obama and Democrats supporting his health care overhaul. The president apologized Thursday for the turmoil some consumers are going through, but there may yet be a silver lining as far as the law itself.

It’s Economics 101, a little-noticed consequence of a controversial policy decision. And there are winners and losers.

The last thing the AP knows about is Economics 101. Which they will once again demonstrate in this absolutely laughable ‘Mother Of All Spins.’

Millions of people who currently buy their own health insurance coverage are losing it next year because their plans don’t meet requirements of the health care law. But experts say the resulting shift of those people into the new health insurance markets under Obama’s law would bring in customers already known to insurers, reducing the overall financial risks for each state’s insurance pool.

Well, the AP’s ‘experts’ are wrong. (As they always are.) We have had report after report about people who going to lose their health insurance entirely because they simply can’t afford the new plans.

So the 3.5 million cancellations (soon to be 93 million) will not be replaced by an equal number of new sign-ups for insurance. Some of these people will enroll in Medicaid. But the vast majority will just opt to pay the Obama-Care ‘penalty.’

Which means more money for the government. But not more money for the insurance companies. (Which, of course, was always part of the plan.)

That’s painful for those who end up paying higher premiums for upgraded policies. But it could save money for the taxpayers who are subsidizing the new coverage.

BS. The only people who are signing up for Obama-Care are people who are getting taxpayer subsidies. Which means more money out of the taxpayers pocket.

And worse still, the vast majority of people signing up on the exchanges, are signing up for Medicaid. Which will mean even more money out of the taxpayer’s pocket. So maybe the AP’s ‘experts’ need a remedial course in Economics 101.

At some point, all these customers had to pass extensive medical screening that insurers traditionally use to screen out people with health problems…

More BS. The vast majority of people don’t have to take a physical to get health insurance.

Such filtering will no longer be allowed starting next year…

And that’s going to help insurance companies drive down costs? That is laughable ignorance, even by the low standards of AP stooges ‘experts.’

The new plans under Obama’s law generally guarantee a broader set of basic benefits and provide stronger financial protection in cases of catastrophic illness… But better coverage also costs more…

How is more expensive coverage "a plus for the insurance companies," again? The AP is stepping on its own, er… spin.

This article was posted by Steve on Friday, November 8th, 2013. Comments are currently closed.

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