There is supposed to be help for people who can't afford the insurance. Because it is mandatory, people who wouldn't otherwise buy insurance will be in the program, so there will be a larger pool of funds. In principle, individual health insurance could be made much cheaper with the mandate because more people who wouldn't otherwise buy insurance will be paying in. However, anything that would reliably limit insurance company profits was taken out of the final bill. So prices will be raised to soak up as much discretionary income as possible for the majority of participants in the plan. The state regulatory agencies still have authority, and in larger states that may help, but in smaller states, I think matters will be grim. When the mandate kicks in, I think the screams will be audible from Mars.
Then there's the problem of starting to collect the mandate in the middle of a depression. I suppose it is possible that increased spending on health jobs (the health insurance industry is required to spend 85% of the premium money on care) might be stimulative. On the other hand, it seems to me likely that the health insurance industry will find away around that, and sock the money away, just like the banks and manufacturing firms have. The Administration, having fired all its economic advisors (really), apparently believes on no evidence that prosperity is just around the corner and is depending on that hope, and also on IBGYBG--it will be the last two years of Obama's term and past the reelection of every Senator who voted for the PPACA.
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timeasmymeasure
no subject
There is supposed to be help for people who can't afford the insurance. Because it is mandatory, people who wouldn't otherwise buy insurance will be in the program, so there will be a larger pool of funds. In principle, individual health insurance could be made much cheaper with the mandate because more people who wouldn't otherwise buy insurance will be paying in. However, anything that would reliably limit insurance company profits was taken out of the final bill. So prices will be raised to soak up as much discretionary income as possible for the majority of participants in the plan. The state regulatory agencies still have authority, and in larger states that may help, but in smaller states, I think matters will be grim. When the mandate kicks in, I think the screams will be audible from Mars.
Then there's the problem of starting to collect the mandate in the middle of a depression. I suppose it is possible that increased spending on health jobs (the health insurance industry is required to spend 85% of the premium money on care) might be stimulative. On the other hand, it seems to me likely that the health insurance industry will find away around that, and sock the money away, just like the banks and manufacturing firms have. The Administration, having fired all its economic advisors (really), apparently believes on no evidence that prosperity is just around the corner and is depending on that hope, and also on IBGYBG--it will be the last two years of Obama's term and past the reelection of every Senator who voted for the PPACA.