Obamacare is going to kill you...slowly.
From The Archives - I’m going back through the old blog and reposting some of the best articles.
I know I should stay away from hot button political issues like this, but I care too much about your health to not go here.
The Affordable Healthcare Act (another Orwellian name) is going to kill you, slowly. There are many reasons, but one of them is simply the perverse economic incentives set up in the law.
As you know, we don't want those evil insurance companies making too much money. Greed is bad, and we can't let the market control it - someone we don't like might make too much money. Did you know that there's a provision in the ACA that says that a maximum of 20% of the premiums collected by an insurance company can go to their profits. If there's a surplus, they have to cut a check back to you. That can't be bad, can it?
Insurance companies can only make 20% on your premiums, the rest has to go to healthcare costs
Insurance companies exist to make money, so they have to collect more in premiums than they send to the hospital. If they're doing their job under the current regulations, then for every $1 they make, they spend $4 in healthcare (i.e., pay your doctor). With a cap like that, what's the only way an insurance company can increase their profits year-on-year? They have to spend more money on health care which lets them increase premiums which lets their 20% share be bigger.
The only way to make more money is to increase healthcare costs so your 20% is bigger
In a true agent model, the insurance company would be on your side, you pay them premiums, they negotiate with the hospital to lower costs (or do their own research on ways to lower costs), and the better they do the more profitable they are. But in this model, their profits scale with healthcare costs. That is, they want costs to go up. Or at least there is zero incentive for them to bring costs down.
Innovation and experimentation that may reduce costs could reduce your total premium and increase profits, but that's illegal.
Why does this matter to you? If you play with the numbers in this white paper, you can discover that by 2030 the costs associated with Medicare and Medicaid (which are mostly Diabetes related) will be 300% of our GDP. Clearly unsustainable.
So what if you had a simple, cheap, and permanent solution to diabetes, obesity, and their related diseases? Maybe a simple diet and exercise intervention? You could cut healthcare costs dramatically (and keep people from dying too, that's usually a good thing).
Is any insurance company going to take the risk to try this program? If their costs drop, they'll have to send the savings back to you. Why do that? It's easier to create foundations that get donations from agribusiness and create commercials that say it's totally fine to eat chocolate and drink Gatorade while you're managing your diabetes.
This law is going to kill you. Your value in the system is to spend your money on cheap processed food, purchased your forced health insurance, and then get sick and have the healthcare system manage your disease (rather than cure it) with more and more expensive (and invasive) treatments. There is no reason to cure you or even look for a cure - lifetime management is where the money is. And don't change your lifestyle, we wouldn't want you passing on the chocolate even though it's the sugar that's killing you.