I have been hearing a lot about Obamacare but I must admit I don’t know anything about it or how it is supposed to work.
Well, it’s 3,000 pages long, but it’s failure can be summed up in a few nutshells.
It requires everyone who does not have the option of getting health care through their employer to sign up for a plan on the ACA Exchanges. These plans are heavily subsidized for the poor, not so for the self-employed and those working for companies not required to offer a plan. Without the subsidy, they are brutally expensive.
There is a penalty associated with *not* having a plan that is incurred on your annual tax statement. The penalty, however, is cheaper than buying a plan, if you happen to be healthy. The contrarian opinion from the beginning was simply that for the young, whose payments were required to carry the costs of the system for those older and less healthy, they would simply choose to pay the penalty, sending the system into a financial death spiral, where each year the plans would get more expensive, making it more financially advantageous to not carry one. This is in fact what is currently occurring. Further, insurance companies are losing money, and are dropping out of the system due to this.
The supporters of the ACA now want the Republicans, none of whom voted for this mess, to now bail the system out by raising the penalties and/or authorize transfer payments of taxpayer dollars to the insurers to keep them in the system, both of which the GOP is ideologically opposed to, preferring to replace the system with something that is more market friendly.