The recent SCOTUS decision on Obamacare means the end for the health insurance companies.
What a claim! How can I say this?
It’s cheaper to pay the annual penalty, now called a tax by SCOTUS, than pay for expensive insurance coverage. The “pre-existing condition” clause means no matter how severely ill someone is, you can wait and buy insurance coverage at the time of the diagnosis. This saves the individual the money they would have paid, over time, into the insurance pool when they were healthy. This is how health insurance has worked since it’s inception. The healthy members pay current benefits to unhealthy members. The payment of premiums by healthy members is what builds up the insurance pool from which the unhealthy members draw from. This only works as long as healthy members are paying in. With the “pre-existing” condition clause in Obamacare, now you don’t have to pay into an insurance pool to draw benefits. It’s cheaper, by far, to wait until diagnosed and then buy the insurance coverage and begin depleting the insurance pool.
How long can an insurance pool last under these conditions?
Not long. This spells bankruptcy for all of the health insurance providers. Yes, all of them. Even those “Cadillac plans” some may have through union contracts. Blue Cross Blue Shield, who provides many unions with insurance, will also feel the strain of a depleted insurance pool and will be lead into bankruptcy. This is an economic fact.
So, what happens next?
This opens up a huge door for the U.S. government to come to the rescue in this time of “crisis”. I use quotes because this is a manufactured crisis. A crisis of design. The design in this case being single payer socialized healthcare. I would expect something along the lines of the German nationalized model. This is where the insurance companies exist but are nationalized by the State. They become nothing more than administrators for national health care paid for through much higher taxes. Depending on one’s profession or place of employment determines which insurance pool the person would belong and be covered under. Everyone of blue collar status would have the same coverage and belong to the same pool. Those who are salaried would receive the same coverage but belong to another pool. Those who are employed by governments would receive better coverage and belong to yet another pool. The logistics of these “contributions” will be mandated upon employers. All of which is currently bankrupt in Germany. This only means rationing, long waits and lowered quality of care as doctors, surgeons and hospitals receive a much lower payment from the government insurance “companies” for their services.
You ain’t seen nothing yet.
I can speak from experience, having lived under this system as I was employed by the Department of Defense in Berlin, Germany throughout the 1980s. Do you like the service you get at fast food restaurants? Then you will love fast food health care under the nationalized model. Under-trained and under-educated staff await your arrival on your trip through health care lane. The entire system revolves around how many payment sheets the health care provider receives. To elaborate; the health care system in Germany is set up on a payment book method. Similar to the payment book some have to pay their mortgage or a car loan. The member receives his or her annual book of pages of payment sheets. So many payment sheets per year means so many visits per year. This is where rationing comes in. When you arrive at the doctor’s office you hand over a sheet from the book, something like from a check book, with all your information on each page. The more of these sheets the office can amass, the more they receive from the insurance companies. The point being; to get as many patients through the office in any given day as possible. Hence, fast food health care!
This, of course, is all conjecture on my part. I cannot say with all certainty that Obamacare will end up on the German model. This is one example of a myriad of socialized health care models out there. It is also the most efficient. This is why I would expect this to be our new American health care model. But, as the saying goes, only time will tell. For all of those who are waiting, with baited breath, for the Republicans to repeal and save the day; take a breath. Understand that current congresses cannot control what future congresses do. SCOTUS has given new and unprecedented taxation powers to congress. Expect the State to be very involved with your health in the near future.