Rand correctly states:
The stick of Obamacare was forcing people to buy insurance or pay a penalty. The carrot of Obamacare was allowing people with pre-existing conditions to buy insurance after they were diagnosed. Even with the mandate, many healthy young people refused to buy insurance and the pools of insured Americans under Obamacare are overly burdened by sick individuals and insurance companies are suffering losses.And he forecasts what Congress is likely to do:
Removing the mandate to buy insurance while leaving in place the dictate that people can wait to buy insurance until after they are ill will only accentuate the bankrupting of the insurance industry.
My fear is that if you leave part of Obamacare in place (the dictate that insurance companies must sell insurance to individuals with pre-existing conditions) then you will see an acceleration of adverse selection and ultimately mass bankruptcy of the healthcare insurance industry.
Partial repeal of Obamacare will likely win the day, but when the insurance companies come to Washington crying for a bailout don’t say that no one warned of this preventable disaster.He details the problem well:
Obamacare required the brute force of government through the individual mandate to make people buy insurance. If you repeal this mandate but leave in place dictates as to whom may purchase insurance, you create a business model doomed to fail.But most important, he has a solution:
Principled opponents of Obamacare rejected it because we reject the use of state force to mandate that we buy a commercial good from a private seller. Pragmatic opponents want to keep the feel good aspects of Obamacare while cleaving the individual mandate that forces people to buy insurance.
What should we replace Obamacare with? Perhaps we should try freedom...-RW