Why Neither Hillary’s Obamacare ‘Fix’ or Trump’s ‘Replacement’ Will Work

Obamacare

“The more the plans fail, the more the planners plan.” ~ Ronald Reagan

This is so logical it hurts. On what planet would you force car insurance companies to take on a new customer who had just totaled his or her new car and force them to pay the claim for that new customer because that driver had a “pre-existing condition?”

What would happen to premiums for the other drivers if car insurance companies were forced by the federal government to do this?

What would happen to car insurance premiums if auto insurance companies were forced by law not to “discriminate” against bad drivers, drunk drivers, or people who have had dozens of speeding tickets? Would not that company be forced to raise premium rates in order to compensate for the following claims that would have to be paid out? Or, did I somehow miss it and now money actually does grow on trees?

What about homeowners insurance or as they used to call it, fire insurance? What if you could burn your dilapidated house to the ground and immediately be reimbursed to build a new one because a bunch of Democrats in Congress passed a 2,300-page law that says insurance companies must cover “pre-existing” conditions? What do you think that arrangement would do to homeowners insurance premiums? Would they not necessarily skyrocket?

Yet, that is exactly what Obamacare does to health insurance companies, isn’t it? It forces them to take the house burning down or the totaled car. Democrats are either economically illiterate or stupid beyond all believability when they act shocked that their government takeover of the healthcare market is resulting in higher prices.

The very definition of insurance is transferring risk. Policyholders pool their money with other customers in order to transfer a large financial risk to a third-party — the insurance company. Insurance companies have to assess the risks they are insuring and assign premium rates based upon each risk. But with Obamacare, the risk has already happened when insurance companies are being forced to cover an unfortunate event — a healthcare crisis — that has already occurred. This perverted arrangement — created and caused by government interference — is not insurance. What is it? Who the hell knows? Unaffordable charity perhaps?

On CNN Tuesday, Trump campaign manager Kellyanne Conway was asked by Wolf Blitzer whether keeping the “pre-existing condition” feature of Obamacare would be carried forward in the “replace” portion of Trump’s often-repeated promise to “repeal and replace” Obamacare. She confirmed that it would.

But this anti-free market concept will not work any better under Donald Trump than it would under Hillary Clinton or Barack Obama. The law of economics won’t be repealed for Donald Trump, as evidenced by his businesses having to file for bankruptcy four times. And Hillary’s solution to the government-created crisis is — of course — more government. Her views literally define insanity, desiring to bring the “success” of the socialized, single-payer VA nightmare to the rest of the country. Yikes!

What should be shouted from the rooftops is that the only way mankind has been able to improve the quality and lower costs of any service in the history of the world is via free market competition without government interference or meddling. This is so obviously true that if you don’t believe me, pick up your iPhone and look at it.

Healthcare in America was affordable, personalized, and accessible before government got involved. There didn’t even need to be health insurance before government began subsidizing it with the passage of Lyndon Johnson’s Great Society of the 1960’s, when government began getting massively getting involved in healthcare (Medicare and Medicaid) as you can see from the following graph, which shows how health care costs have been skyrocketing since then.

Image result for graph on health care costs over time

As you can see, “out of pocket” costs, which represented all health care spending before government involvement because people could afford to pay for health care out of their pocket, haven’t risen much but total healthcare expenditures continue to explode.

And unfortunately, even though Obama repeated promised Americans that their health insurance premiums would drop by $2,500 per family, to start, the exact opposite turned out to be the case and Americans are now being punished for the Democrat lie.

Obamacare cannot be “fixed” by more central planners and it won’t matter much if the planners have a “D” or an “R” next to their name. But as Ronald Reagan brilliantly and prophetically said decades ago, “The more the plans fail, the more the planners plan.”

If politicians and bureaucrats sincerely wanted Americans to have affordable health care, they would get the hell completely out of it and allow the only remedy possible to fix the problems — and it doesn’t include them.

About the Author

Matthew K. Burke
Matthew K. Burke
A former Washington State U.S. Congressional candidate in 2010, Matthew attended the nation’s first modern day Tea Party in 2009 in Seattle, Washington. He also began writing and blogging that year. Matthew became a Certified Financial Planner in 1995 and was a Financial Advisor for 24 years in his previous life. Matthew was one of the three main writers leading a conservative news site to be one of the top 15 conservative news sites in the U.S. in a matter of months. He brings to PolitiStick a vast amount of knowledge about economics as well as a passion and commitment to the vision that our Founding Fathers had for our Republic.
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