Why Are Obamacare Exchange Policies So Bad?

6608Hunter Lewis writes in today’s Mises Daily:

Insurance companies respond to this dilemma in the only way they think they can. They squeeze the doctors fees and gamble that enough of them will go along to take care of the policy holders. Will this gamble pay off? It is doubtful.

Many doctors, doctor networks, and hospitals are already refusing to go along, so the policy holder will be stuck with insurance that is useless because no doctor will take it. Expect to see hospital emergency rooms flooded with even more patients under Obamacare, and expect to see the waits get even longer.

Older and sicker insurance customers may think they like the idea of price controls that work in their favor. But will they like insurance companies taking every available legal means to discourage their buying a policy or staying on that policy? Would you want to be covered by a company that does not want your business?

With Medicaid enrollees swelled by Obamacare, and much private insurance turned into what John Goodman calls “Medicaid Lite,” what will happen to medicine? The most likely result will be large numbers of doctors taking early retirement and fewer talented young people entering the field. The supply of medicine will shrink while the demand, fueled by government subsidies, increases.

 

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