ObamaCare Death SpiralA new report by the Department of Health and Human Services (HHS) – designed to prove that ObamaCare is increasing access and lowering health costs – may provide evidence to the contrary. A government health analyst says that ObamaCare could be in the early stages of a financial death spiral.

When the health care exchanges opened last year, most patients were expected to enroll in the least expensive “bronze” plans. However, the HHS report “Premium Affordability, Competition, and Choice in the Health Insurance Marketplace, 2014,” shows a much larger-than-expected number of Americans enrolling in the “silver” plans.

National Center for Public Policy Research health-care policy analyst David Hogberg said in an interview with World Net Daily that this finding could be very significant to the financial future of the American health-care system.

Hogberg can’t say with 100% certainty that the financial death spiral is inevitable. However, he says to watch how much insurance premiums rise in the coming months. How much do they need to be rising to be a signal of financial instability in the health-care sector?

“I think you would probably be seeing at least 10 percent or more on average, and we’ve started to see a bit of that,” Hogberg said.

Insurance companies in Arizona, Ohio, Vermont and Washington state have already asked for premium increases anywhere from 12 to 26 percent.

Hogsberg added, “If we see really high increases like that, there’s going to be a lot of incentive for young and health people who aren’t getting very big subsidies or getting no subsidy at all to drop out of the exchanges.”

The mis-named (and intentionally misleading) “Affordable Care Act” was based on the premise that enough younger, healthier Americans would buy health insurance to subsidize older citizens with more pre-existing health challenges. This latest HHS report shows this assumption is less-than-accurate, to be generous.

If premiums rise — as expected — and young, healthy people drop out instead of paying higher insurance premiums, it will quickly create a financial death spiral. Higher premiums lead to more drop-outs… more drop-outs lead to higher premiums… which lead to more drop-outs, and so on. Eventually, the entire system will collapse under its own financial weight.

Free-market economics and capitalism have shown throughout history that when given a choice consumers will act in their own best interest — not in service of the “greater good for others,” as stated in the Communist Manifesto.

At this early date, it looks like ObamaCare is indeed destined for failure, just like every other government-mandated program. The only question that remains is: Will this lead to the repeal of the ACA? And if it does, will a new free-market solution replace it — or a universal, single-payer system like Great Britain or Canada?

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