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July 27, 2015

Financial Troubles Plague The State-Run ACA Exchanges

"The viability of state health insurance exchanges has been a challenge across the country, particularly in small states, due to insufficient numbers of uninsured residents."

Oh. Oooooooh.

Let me make sure I understood. Not enough uninsured people? That's what he said, right? Because it seems to me that Democrats spent years claiming that there ware millions of uninsured people who were going to DIE all over our sidewalks if the taxpayers didn't cough up the cash to build these Obamacare exchanges. Was that not true?

Read the whole piece because it covers all the tropes of failed liberal policy.

1. The entire policy started from a false premise.

"The viability of state health insurance exchanges has been a challenge across the country, particularly in small states, due to insufficient numbers of uninsured residents," said a statement from the office of Hawaii Democratic Gov. David Ige, announcing last month that his state's sign-ups were being turned over to the federal government.

It turns out that the very expensive solution of upending the nation's healthcare systems to serve relatively few people is not a good plan. Go figure.

2. Magical thinking.

Twelve states and the District of Columbia fully control their markets. Experts estimate about half face financial difficulties. Federal taxpayers invested nearly $5 billion in startup grants to the states, expecting that state markets would become self-sustaining. Most of the federal money has been spent, and states have to face the consequences.

Self-sustaining? How was "more services" and "fewer costs" ever going to be self-sustaining? It was magical thinking, as Vermont discovered:

In Vermont, a debate has been raging about whether to abandon the state exchange. Democratic Gov. Peter Shumlin originally wanted a single state-run system for all residents, along the lines of Canada. Shumlin backed off because it would have meant prohibitively high taxes.

3. The solution must be kept secret.

The Obama administration's annual conference with state exchange directors will focus on sustainability, they say. They also say the two-day meeting will be closed to the media.

4. Misuse of taxpayer money.

The feds are investigating exchanges or exchange officials in Massachusetts, Maryland, and Oregon for misdeeds ranging from misuse of millions in federal funds to outright fraud.

Who could not have seen this coming?


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posted by Gabriel Malor at 11:18 AM

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