Short-Term Health Plans Are Surging. I Wonder Why?

The sales of short-term health policies are surging in the United States right now. This phenomenon can be directly attributed to the rising costs of health insurance under Obamacare. This development not only undermines the objectives of the poorly thought-out (even more poorly implemented) legislation, it also poses a risk to the American healthcare system going forward. 

The Wall Street Journal broke down this recent development in the healthcare industry in a dope article they published on Sunday. As you’ll see, the increase in short-term policies is directly related to the increased costs of healthcare due to the Affordable Care Act (Obamacare) and it’s shitty implementation. Here’s some YUGE insights and takes on the issues:

“A type of limited health coverage with features largely banned by the Affordable Care Act is flourishing, as some consumers grab onto an alternative they say is cheaper than conventional plans sold under the law.”

Well, duh. The average cost of healthcare policies in America have dramatically increased since the implementation of Obamacare. The ever-increasing healthcare costs under the ACA are so high that Americans are willing to endure massive and increasing fines for not enrolling.

“Sales of short-term health insurance are up sharply since the health law’s major provisions took effect in 2014, according to insurance agencies. “This is exactly the kind of coverage the ACA was designed to get rid of,” said Larry Levitt, a senior vice president at the Kaiser Family Foundation.”

“Short-term plans aren’t considered individual health insurance, and thus aren’t subject to the ACA’s rules. Some short-term plans can last nearly a year, after which a policyholder must reapply.”

The sales of these short-term health insurance plans have skyrocketed. People would rather take hits to the chin like Stallone in Rocky II via these obamacare funnyoutrageous fines than pay for the “mandated” health plans. On top of that, the sales growth is absolutely undermining the goals and objectives of Obamacare. People are now on varying healthcare systems and are under a wide range of coverage levels that the legislation intended to minimize.

One 34-year old individual in the WSJ piece highlighted that she is paying ONLY 25% of what she would have paid for ACA plans by purchasing short-term policies. Among other things, the individual mentioned that the healthcare costs under Obamacare are “just not affordable”.

 

“The short-term policies’ limits help keep premiums down. A survey by eHealth Inc. this year found that 51% of purchasers cited price as their reason, versus 39% who said they needed only temporary coverage.”

The number of applications for short-term policies on eHealth’s website has doubled since 2013, which was before Obamacare was fully implemented. HealthMarkets Inc, another insurance agency, noted that the sales of their short-term plans were up 150% between 2013 and 2015. That’s fucking insane folks. Clearly no matter how hard the government tries to control exactly how the people receive their health coverage, the people will seek the resources that best fir their needs. 

 

“The short-term plans can siphon off healthy people who are needed to help make the ACA insurance business work. Those consumers then add to the costs of ACA plans if they buy coverage only when they have health needs. “You cause some real problems for the market,” saidTimothy S. Jost, a professor at Washington and Lee University.”

Now we get to the REAL PROBLEM that may emerge from this development. The entire Obamacare system is predicated on a high volume of young/healthy individuals signing up for coverage. The systems needs young/healthy individuals (who have lower healthcare costs) enrolled in order to “subsidize” the older, sicker, and poorer enrollees. Here’s the thing: if many young and healthy Americans aren’t enrolling, who the hell is covering the costs of the elderly, extremely sick, and poor who cannot afford the healthcare plans…?

And that, ladies and gentlemen, is why you’re premiums and overall rates have increased and will continue to rise.

Good thing we have competent leadership in our government looking out for Americans’ needs by performing thorough due diligence……

WHOOPS.

 

Important Disclaimer: I support the idea of affordable healthcare being available to all Americans. I do not support the idea of politicians uncompromisingly rushing the design and implementation of “affordable healthcare” for the purpose of legacy, without understanding the full consequences of a legislation.
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