As the average cost of Obamacare’s cheaper plans are up this year by almost 32%, IPI’s Dr. Merrill Matthews joined WBOB’s Ed Dean to discuss the trend, which he says is the death spiral everyone was warned about.
“It is remarkable,” said Matthews. “This was predicted by those of us writing about this before the insurance provisions kicked in in 2014.”
“Insurers see their costs exploding,” he said. These are not large groups. These are pools of 15 to 30,000.”
“This is the death spiral. When you require insurers to take people regardless of medical conditions, it becomes very valuable to the sick people. Premiums rise, healthier people tend to drop out, and the pool gets smaller and sicker.”
2018 05 09 ed dean matthews obamacare