VIEW VIEWPOINT

Health Care Death Spiral

Written by Kerby Anderson October 14 - 2014
Most of the concern expressed about Obamacare focuses on the immediate impact while ignoring the long-term effects of the law. Dr. Merrill Matthews explains in a recent column that the bigger problem will arise in a few years. Insurance actuaries call this problem a health care "death spiral." In the near term, many will experience "sticker shock" when they discover how much their insurance premiums will cost them. Those most affected will likely be young and healthy people who live in states that managed to keep health insurance premiums relatively low. On the other hand, people with chronic illnesses or other expensive medical conditions will be joining exchanges. Many of the larger health insurers are avoiding these exchanges because they believe that just such people will be joining the exchanges and have medical conditions that will be expensive to treat. The costs might exceed the premiums they were able to collect. Meanwhile the young and healthy are likely to avoid joining an exchange since they will be charged much more under Obamacare than they would have paid in the past. The law is designed to overcharge the young and healthy so that older and sicker people can be charged less. The latest HHS ads are an attempt to get young people to sign up. The problem only gets worse in subsequent years. As a disproportionate number of sick people enroll in the pool, the cost of an insurance policy will rise. These premium increases will drive healthy people out of the pool looking for lower rates that match their healthy condition. As the pool get smaller and sicker, rates will go up once again. That will drive out another wave of people until the pool is very small and very sick. This is what insurance actuaries call a "death spiral." Put simply, the challenge at the moment is to get young and healthy people to sign up for exchanges. But the bigger challenge in the future will be to get them to stay once they find out how unaffordable Obamacare is for them.   http://ncfr.net/ncfr.net/subdomains/commentary/Downloads/Kerby_Anderson/10-14-2014.mp3

Listen to this Viewpoint

Viewpoints

View All
1793995016 6aee310843c6a
November 6, 2026
Penna Dexter

Debanked

A report compiled by the Office of the Comptroller of the Currency reveals that, between 2020 and 2025, the nine largest U.S. banks deprived certain customers of banking access due to their politics o...

Listen
1793652281 6ae8f639c8f5a
November 6, 2026
Kerby Anderson

Digital Currency

For more than a year, the European Union and the European Central Bank have been developing a retail and wholesale Central Bank Digital Currency (CBDC) known as the digital euro. It has been promoted...

Listen
1793651544 6ae8f3588a3b7
November 5, 2026
Kerby Anderson

Drawing Lines

Although the election is in the rear-view mirror, it is worth asking a question from this election that will affect the next election. Who should draw the lines for Congress? Supreme Court justices ha...

Listen

Take Action

View All
Protect Privacy Against Flock Cameras
August 9, 2026

Protect Privacy Against Flock Cameras

Flock cameras are everywhere. While one camera is a tool, the more than 100,000 AI-powered cameras now posted around our nation are a new layer of dig...

Support the SAVE Act
July 20, 2026

Support the SAVE Act

SAVE Election Integrity with Voter ID.

Support the Safeguarding Women from Chemical Abortion Act
April 15, 2026

Support the Safeguarding Women from Chemical Abortion Act

The abortion pill harms women and kills unborn children. Congress must act.

FACE Act Repeal Act of 2025
January 12, 2026

FACE Act Repeal Act of 2025

Pro-lifers have been abused under the FACE Act for long enough.