Sunday, April 18, 2010

NYT Admits Obamacare Will Drive Up Costs

Of course, the bill is signed into law now. Obamacre is going to create the same “adverse selection death spiral” New York insurance law has.

From the NYT:
Healthy people, in effect, began to subsidize people who needed more health care. The healthier customers soon discovered that the high premiums were not worth it and dropped out of the plans. The pool of insured people shrank to the point where many of them had high health care needs. Without healthier people to spread the risk, their premiums skyrocketed, a phenomenon known in the trade as the “adverse selection death spiral.”

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