Attention Economy


Wednesday, October 26, 2016

Fixing Obamacare

America’s dysfunctional healthcare system needs some urgent fixes:
Cassidy notes a fundamental problem with the Affordable Care Act:
“One of the big problems that insurers are facing is that too few healthy people, and too many sick people, are signing up for the plans sold through the exchanges. For insurers, that changes everything. Faced with higher claims per enrollee than they expected, they seek to raise their prices, which makes healthy people, especially young healthy people, even less likely to sign up the following year. If unchecked, this process could lead to a spiral of rising prices and falling enrollment.
An obvious way to address this problem would be to drastically raise the fines that people face if they don’t purchase insurance.”