Sunday, December 8, 2013

ObamaCare - Covered California Exchange Failing

Covered California, the ObamaCare State Health Exchange is a big mess.  So far, California has signed up only 80,000 people for ObamaCare and another 140,000 people for expanded Medicaid/MediCal.  There are another 35,000 that may think they have signed up for medical insurance; but that are not yet entered into the system.  Either way, these numbers are a drop in the bucket for the most populous state with over 35 million people, especially since over a million Californians have had their current medical insurance policies cancelled effective January 1, 2014.

Covered California just can't handle the potential volume by the December 23rd deadline, so in violation of various privacy laws, California  government bureaucrats gave out the names, addresses and other contact information of those who just shopped on the California Exchange to insurance brokers all over the state.  What many do not realize is that the uninsured do not need to go on the Federal or State Exchanges to buy medical insurance unless they are eligible for a subsidy, or they are applying for expanded Medicaid.   Others can go directly to insurance brokers, or to various insurance company websites to buy medical insurance.  California Covered is now encouraging insurance brokers to follow up on these leads because the State Exchange cannot handle the volume.   Sound familiar.

So many of the more than 5 million Americans, in the private market, who have had their policies cancelled that are not eligible for subsides should not waste time with the Exchanges.   They should go direct to insurance companies to shop for the best deals for them. In all likelihood, as a result of the ObamaCare "free mandates", they will see the same higher insurance rates buying direct as they would have seen on the Exchanges, since the insurance companies can't be in the marketplace with wide variances in pricing. 

In any case, it is not just the ObamaCare Federal Health Exchange that is a mess.  Apparently, Covered California, the biggest state Exchange in the country, is in disarray as well.  Most important, the dismal sign up rates will make it impossible for Obama to meet his 7 million sign up target by March 1, which is the basis for all the numbers in ObamaCare.  Young, healthy people in particular that don't qualify for subsidies, or Medicaid are not going to pay two or three times what they should be paying to subsidize older people.  It is not going to happen. 

Instead, healthy young people will just self insure until they get sick and then buy ObamaCare, which will blow all the numbers apart.   Obama and most Socialists in government that have never worked in business, or managed anything in their lives just don't not understand human nature.  Obamanistas are going to learn this lesson the hard way in the months ahead and we are all going to pay the price for their foolish mistakes in resultant higher medical premiums.    

No comments:

Post a Comment