February 14, 2014
Doom: 20% of Obamacare Enrollees Never Paid First Premium ... 83% of Current Enrollees Are SubsidizedTopics: Political News and commentaries
In what surely amounts to a significant contribution to eventual doom for Obamacare, one in five Obamacare enrollees haven't paid their first month's premium. In other words, they aren't really actually enrolled.
Via The Wire:
About one in five Obamacare enrollees never paid their first month premium, meaning they weren't actually insured in January, The New York Times reports. Insurance providers across the country say anywhere from 70 to 95 percent of customers managed to pay their premiums by extended, mid-January deadlines. But in some cases, 25 to 30 percent of would-be enrollees -- enrollees the government has been counting in its enrollment numbers -- missed even extended deadlines.As for that last point, it's noteworthy that the Obama administration counts as "enrolled" people who merely have done the equivalent of the Amazon.com shopping cart -- expressed the desire to have some stuff, in this case Obamacare. There's a good reason that Amazon.com doesn't count stuff put in the shopping cart in the sales figures it reports -- that would be securities and accounting fraud (but that obviously is of no concern to the Obama administration. Amazon.com also doesn't ship the stuff you put in the shopping cart unless you pay for it before it leaves the warehouse -- simply put, that would be stupid. The percentage of people putting items in their shopping cart and then not buying them is known in e-commerce as the "abandonment rate," and on most sites, average 68%. However, Obamacare provides coverage to people who haven't paid a single cent, and even worse, it has no clue who paid nor anyway of figuring out who has paid for what.
This comes just two days after the Obama administration reached its first monthly enrollment target in January, signing up 1.146 million individuals when they expected 1.059 million. The administration has said it doesn't know how many people have paid since they haven't finished building the back end of the exchange (the part that pays insurers). But if, across the board, 20 percent of people haven't paid their premiums, then January enrollments would be under 1 million.
There are a few reasons people could be skipping out on their payments. They received the invoice late, or not at all. They couldn't get through on the phone lines. They spent the money on something else. Or, and this is the reason detractors of the health law will latch on to, they decided they just didn't want it.
The bad news gets worse. According to The Lund Report, the CBO predicts 5 out of 6 million exchange enrollees (about 83%) in 2014 will receive a federal subsidy. That means only 17% are actually paying for their own plans without the help of the federal government (i.e. the taxpayers).
And, then there's the fact that 25% of new Obamacare enrollees are ages 18 to 34, below the 40 percent threshold the administration at first said was necessary to keep premiums steady. Moreover, 55 percent of enrollees are women, who are generally more expensive to insure than men, mostly because of maternity care.
And add to all this the fact that only 25% of new enrollees are ages 18 to 34, well below the 40 percent threshold the administration initially claimed was necessary to keep premiums steady. Moreover, 55 percent of enrollees are women, who are generally more expensive to insure than men, mostly because of maternity care.
Total all this up and what we end up with is doom for Obamacare, unless of course it either gets repealed and replaced ... or undergoes 'significant common sense' reforms.
Hat tip - Jim Hoft
Posted by Hyscience at February 14, 2014 2:38 PM
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