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ObamaCare's Economic Dominoes

Original post made by Pleasanton Mom, Birdland, on Apr 2, 2010

The economic chaos resulting from ObamaCare will trigger the collapse of one economic domino after another. As it does, America will become a statist's Socialist's dream, but an unqualified socialized nightmare.



April 02, 2010
ObamaCare's Economic Dominoes
By C. MacLeod Fuller

Now that health care reform in the shabby disguise of ObamaCare has been crammed through Congress, a peek at the president's precariously stacked dominoes confirms that sooner than you may suppose, there won't be any private companies selling health insurance in America. Consider:


There are approximately 1,300 insurance companies in America today.


Beginning January 1, 2011, these companies will be required to pay out 85% of all premiums collected as direct medical care, leaving 15% of corporate income to fund operations and yield any potential profit.


The health care industry has a profit margin of about 3%. Most American businesses rely on securing annual profits of 8% to 10%. American oil companies operate on about 4% profit. Alcoholic beverage sales net annual profits of 26%.


To maintain even slim profitability or cash reserves, insurers will be compelled to run austerely.


Why?


Among numerous regulations implemented immediately, ObamaCare cannot deny children with preexisting illnesses coverage, no matter the illness, no matter the long-term cost -- and children are now "children" until age 26. It is irrelevant there may never have been any contribution for such children into an aggregated "risk pool" of insurance policy purchasers -- the very idea of which is to "spread the risk" around. They will be able to have all their medical costs paid for by the responsibility and forethought of unrelated others.


Adults currently uninsured due either to preexisting illness or choice can now buy into government-run and guaranteed plans which insurance companies will in essence be required to assume beginning 2014, when they will no longer be allowed to exclude anyone based on actuarial or other rational data standards.


Costs for insurers will further increase as they pay more and larger amounts in claims that have no dollar ceiling -- they are immediately banned from implementing lifetime caps on coverage.


Under ObamaCare, once subsidized purchases begin no later than 2014, millions of formerly uninsured will be eligible for federal subsidies to help purchase coverage they can already afford but choose not to buy. There are currently eight million uninsured Americans earning over $50,000 a year and another nine million uninsured Americans earning in excess of $75,000 a year who willfully play medical roulette by refusing to purchase health care insurance for their dependents. Nevertheless, a family of four with an income of $88,000 a year will be eligible for financial aid.


Healthy, and especially young, people will predictably opt to pay the $750 ObamaCare fine assessed for failure to purchase coverage since it is less than the yearly cost of insurance premiums. Quite literally, there will be no need to purchase "insurance." One can simply wait until illness or accident strike, but in the meantime spend money in other ways.


More and more workers and families who previously sustained the business of insurance companies will weary of witnessing millions of Americans game the system and take a free ride. Formerly responsible citizens will allow their health care coverage to lapse and adopt the same wait-and-see attitude. If an emergency occurs, they too will have failed to pay into a health care risk pool for months or years, but their medical bills will be paid -- by insurance companies who received nothing from them or millions of others who made similar self-referential decisions.


As payouts broaden and escalate, insurers will not have sufficient financial resources to operate within the allowable 15% of gross income. Forced to meet the 85% mandatory payout threshold, they will do one of two things -- raise premiums on those diminishing customers actually purchasing insurance or cut costs.


Business operating expenses include a vast array of liabilities, from buildings and taxes to furniture and computers, but after medical care payouts are made, insurance companies' biggest cost center is personnel -- which is where cuts have already begun.


As staff reductions continue, tens of thousands of insurance industry employees will be thrown out of work -- estimates run as high as 690,000. These are American workers with spouses and children, mortgages and car notes, food bills, utility bills, and hundreds of other financial responsibilities. Unemployed, they will add to the worsening overall economic situation and be remanded into the ranks of the fully subsidized health "insured."


The dominoes won't stop falling there.


Many more than just direct insurance personnel will be affected. As cutbacks intensify, reliance by insurers upon various vendors and suppliers will be curtailed and terminated. Independent brokers will no longer receive business as insurance companies take direct sales and other functions back in-house. Hundreds of related external service providers will be cut or canceled, as will their employees when work supply exceeds demand.


Massive increases in the use of medical services will overload doctors' and hospitals' ability to provide adequate care. It will become rationed as too many people chase too few services too much of the time at too great a tab because too few people contributed too little money to its actual cost. Physicians and pharmacists who accept Medicare and Medicaid reimbursements will continue to see earnings both diminish and become more government-controlled. At the same time, medical innovation will slow if not cease because ObamaCare levies a massive new excise tax on medical device manufacturers. They will stop "innovating," and many go out of business, unable to pay the cost of business in a nationalized industry -- literally taxed to death. The inevitable result will be fewer doctors, fewer specialists, and greatly reduced and rationed care.


Add to this statist medical assurance the fact that incrementalist Democrats fully intend, eventually, to provide universal care to over 12 million illegal foreign aliens, and the rising price of medical care defies comprehension. Illegal aliens, like millions of freeloading citizens, will have paid little or nothing for benefits parasitically leeched from the insurance industry, the economy, and the American ideal -- which until the past few decades didn't include an ever-enlarging entitlement appetite of something for nothing.


Finally, "risk pools" will have filled -- overpopulated with people who have rarely or never paid into the health care system before and who, even if not extremely or expensively ill, will contribute to the crisis of underfunded overutilization. Insurance companies will run out of costs to cut and people to lay off. They will cease to do business, existing only as collection points for government oversight. Taxes will rise exorbitantly to pay for "free" universal health care. Socialized medicine will reign.


Americans will have the single-payer health care system President Obama and the extreme Left-dominated Democrat Party and Congress have explicitly schemed towards for seven decades: the federal government. And the system will no doubt be underwritten by confiscatory taxation.


One-sixth of the United States economy will transform into an even larger percentage due to the complete destruction of an industry, hugely magnified unemployment, and overutilization of underfunded, mandated medical care and resources.


The economic chaos resulting from ObamaCare will trigger the collapse of one economic domino after another. As it does, America will become a statist's Socialist's dream, but an unqualified socialized nightmare. The human cost in this is incalculable, but quite easy to imagine.


Thank an Obama voter today.

Page Printed from: Web Link

Comments (20)

 +   Like this comment
Posted by Dumb as one gets retriever
a resident of Foothill Farms
on Apr 3, 2010 at 8:20 am

(Post makes no sense and has been removed by Pleasanton Weekly Online staff.)


 +   Like this comment
Posted by Dumb as one gets retriever
a resident of Foothill Farms
on Apr 3, 2010 at 8:23 am

And are the P-Towne Citizens in need of people copy and pasting these articles, or are we resourceful and exposed to news media outlets?
\
This type of narcissistic posting is Juvenile at best and an insult to our collective community of more intelligent folks.


 +   Like this comment
Posted by M
a resident of Another Pleasanton neighborhood
on Apr 3, 2010 at 8:27 am

Pleasanton Mom is intellectually smelling up the room ... please go away. I'm sure there are plenty of parties down in Texas where you can find your type ... the zoo is another place if you have trouble getting to Texas (you know inability to get a humanoid driving license and all)


 +   Like this comment
Posted by Dumb as one gets retriever
a resident of Foothill Farms
on Apr 3, 2010 at 8:36 am

posted by Pleasanton Mom:\\

"Thank an Obama voter today."

YOU are MOST welcome, Duh!


 +   Like this comment
Posted by J. Galt
a resident of Downtown
on Apr 3, 2010 at 9:37 am

Wow, excellent points DumbAs and M. Since you're not able to debate you just attack and ridicule.

Did you read Alinsky's book or just the Cliffs Notes?


 +   Like this comment
Posted by M
a resident of Another Pleasanton neighborhood
on Apr 3, 2010 at 10:34 am

J Galt ... go away ... you guys are really abhorrent ... it's time to stop listening to your hateful rants and try to be constructive ... please go away.


 +   Like this comment
Posted by PM4T
a resident of Another Pleasanton neighborhood
on Apr 3, 2010 at 11:28 am

I would personally like to thank Pleasanton Mom. Thanks to all the hard work of her and those like her, the Democrats are doing much better than the Republicans in campaign contributions for the upcoming elections.
*With midterms approaching, GOP outmatched by Democrats on campaign funds
"The Republican Party's strategy since early last year of lock-step opposition to the Obama administration's major legislative initiatives has proved to be less bankable than some party leaders may have anticipated.
With eight months to go before congressional elections, House and Senate Democratic candidates exceed in virtually every important campaign fundraising category. Democratic House lawmakers appear likely to reverse their seven-cycle record of being outspent by House Republicans, according to recent finance reports.
Democrats in both chambers are enjoying the traditional advantages of majority-party status -- and then some. They lead in donations by political action committees, by committees affiliated with the national political parties or with House and Senate leaders, and in individual contributions to incumbent lawmakers. In some instances, their lead exceeds what the Republicans had when that party controlled both chambers in the 2005-06 midterm election cycle.
To no surprise, analysts differ by party on the causes and significance of the disparity. Some Republicans say a donations surge may still come in the campaign's final months, particularly as the party courts new, small donors outside Washington. They also complain that donations to party stalwarts have been affected by internal squabbles with REBELLIOUS TEA PARTIERS, which they hope will end soon."
Web Link
Coupled with yesterday's jobs report, I'm not really sure what the Repubs have left to stand on. Oh, wait, I know. Nothing.



 +   Like this comment
Posted by Juan
a resident of Another Pleasanton neighborhood
on Apr 3, 2010 at 11:59 am

Dear PM4T,
I agree with you wholeheartedly. The Democrats stand for a lot!

Corruption
Bribery
Unconstitutional acts
Vote fraud
Socialism
Communism
Abortion
Euthanasia
Establishment of elite "government" class
Abolition of private property
Welfare economy
Debt, debt, and more debt
Taxes, taxes and more taxes
Reduction of America's national defense
Aligning with terrorist organizations
Destruction of Ameria's private sector
Destruction of America's economy
Destruction of America's innovation
Destruction of freedom in America
Destruction of America's superb healthcare system
Prevention of America's energy independence
Destruction of America's educational system

...among others...just to name a few.

I despise Democrats. Despise them.
I view them as dangerous to America as alQaeda.






 +   Like this comment
Posted by Dumb as one gets retriever,
a resident of Foothill Farms
on Apr 3, 2010 at 12:46 pm

{posted by Pleasanton Mom, a resident of the Birdland neighborhood

The economic chaos resulting from ObamaCare will trigger the collapse of one economic domino after another. As it does, America will become a statist's Socialist's dream, but an unqualified socialized nightmare.}

{Posted by J. Galt, a resident of the Downtown neighborhood, 2 hours ago

Wow, excellent points DumbAs and M. Since you're not able to debate you just attack and ridicule.Did you read Alinsky's book or just the Cliffs Notes?}


@ J. Galt,

Is it just me or is this insane? I do believe that Pleasanton Mom Constantly uses major band with here on the P-Town Community forum, to Copy and Paste, use links to just banter. It's a waste of time and space, hard on the servers and is just plain bull shi_ propaganda on steroids at best most of the time. She comes of very unintelligent when she writes a short brainless pROPagANDA to go along with these long and linked article she copies and pasteS. pLEASASNTON MOM MAKES A QUICK COMMEMT AT THE BEGGINING OR END THAT IF OFTEN CONFUSED WITH THE CONTENS. tHIS WOMAN APPEARS TO FEEL THAT HER LAME COMMENTS MEAN SOMETHIUNG TO SOMEONE OUT HERE IN cYBER LAND AND HER COMMENT SIMPLY ADD BRAILESS BANTER AT BEST AS i SAID ALREADY. yOU COME IN AND THOW POOP ON POO HERE. wONDERFUL DUDE! gEEZ! gO HAVE SOME fun OR SOMETHING AND BACK OFF THE MEDS!

We should all be grown ups here and we have our own news sources, so whats this woman's point? It's insulting that she constantly posts dissertation and write:

"The economic chaos resulting from ObamaCare will trigger the collapse of one economic domino after another. As it does, America will become a statist's Socialist's dream, but an unqualified socialized nightmare."

tHATS a very sorry combination as related to what bETTY BOOPS PoSted, pERIOD!

fINALLY:

ObamaCare Mis oBAMA cARE!

statist', wtf?

c mON, rEALLOY pLEASANTON MOM, TAKE YOUR MEDS or get a hobby!


 +   Like this comment
Posted by J. Galt
a resident of Downtown
on Apr 3, 2010 at 1:33 pm

M, perhaps you should re-read your posts before you throw stones.

DumbAs, I think you have a valid reason to question cutting and pasting....PMfT cuts and pastes above. IF the PW doesn't have a problem with it then you shouldn't either. I don't read the pasted articles and I don't follow the links. I was only commenting on M's hateful rants and, quite frankly, your rather creepy Zodiac Killer style posts. Keep you Caps Lock under control.


 +   Like this comment
Posted by Pleasanton Mom
a resident of Birdland
on Apr 3, 2010 at 7:40 pm

Juan,

I feel 100% as you do.

America is being overthrown from within.

My family had an early Easter with my grandparents today, our dinner table conversation was dominated by what communism has done to the world. Healthcare is used as a tool by communist governments.

My grandparents are literally heartbroken at the perilous future their great-grandchildren face - at the hands of Democrats.

Thank you, Juan, for your efforts.

God Help us.


 +   Like this comment
Posted by Really?
a resident of Another Pleasanton neighborhood
on Apr 3, 2010 at 10:31 pm

The scariest part is that Pleasanton Mom really believes this crap she posts. Where were you Pmom the last eight years as we watched our civil liberties being taken away and our nations debt rise to the trillions? Now action is taking place in Washington, jobs are on the increase, and the market is at an all time high and you think the country is being overthrown?

It is your mentality that my grandparents, parents, and children fear and are disgusted with.


 +   Like this comment
Posted by jimf01
a resident of another community
on Apr 4, 2010 at 9:04 am

I am shocked, SHOCKED, that not a single HCR supporter would post in here supporting the notion that the Democrats have a fiscally sound plan, or some logical reasoning as to why this HCR takeover will not send shockwaves through the system.
Or, how about, maybe possibly saying that the numbers and percentages presented are factually false.

Not shocked, in the least, that the usual cast of characters is assaulting the poster, calling for PMom to be silenced.


 +   Like this comment
Posted by jimf01
a resident of another community
on Apr 4, 2010 at 9:08 am


PM4T - Thanks for your information showing that the GOP majority in 2006 outraised the Dems, and the Dem majority in 2010 outraises the GOP.
I would never have guessed that PACs that raise money seeking additional influence and power would donate most of their money to the party in power.


 +   Like this comment
Posted by Janna
a resident of Dublin
on Apr 4, 2010 at 7:55 pm

Janna is a registered user.

Really?,

PM admittedly never paid attention to politics until Obama was elected because apparently it was outrageous that a democrat was elected. I find it completely hilarious that she and her family sat around and talked about communism during Easter as if she knew was she was talking about. I'm sure AmericanThinker.com was handy so they could look up the answers.

She has no idea what Bush did to us, but is apparently convinced he did a great job. It would be funny if it wasn't so sad.


 +   Like this comment
Posted by T.R. Ollman
a resident of Carriage Gardens
on Apr 4, 2010 at 8:07 pm

I love how the right-wing crackpots are now challenging real-world facts and statistics as being "made-up."

"Hmm...the sky didn't fall as I was claiming and for some reason, Obama hasn't turned the country over to the Soviets, soooo....reality isn't real! It's a trick! We must be in the Matrix!"

Pleasanton Mom, jimf01, Juan (if you're not really just PM posting under another name and congratulating yourself on each new post): you need to familiarize yourselves with the concept of cognitive dissonance. I know PM LOVES links, so here you go: Web Link


 +   Like this comment
Posted by PM4T
a resident of Another Pleasanton neighborhood
on Apr 4, 2010 at 9:05 pm

Janna and T.R., good to see the some sense on these boards again!
Jim, you shouldn't try to change the focus. In case you missed it,
"Democratic House lawmakers appear likely to reverse their seven-cycle record of being outspent by House Republicans, according to recent finance reports."
and
"The Republican Party's strategy since early last year of lock-step opposition to the Obama administration's major legislative initiatives has proved to be less bankable than some party leaders may have anticipated."
That's what you really needed to take away from the article, because it illustrates the effectiveness (or lack thereof) of the right's current strategy.
You know, you've said it's not right v. left, it's right v. wrong. That's silliness. As a lefty, I don't need to vilify the right. I want the right to have good leadership and integrity. I don't think that liberals have all the answers. That's why I've said before and I'll say it again, until the right pulls it together and stops being the party of 'no,' they're doing us ALL a disservice.


 +   Like this comment
Posted by T. R. Ollman
a resident of Carriage Gardens
on Apr 4, 2010 at 9:12 pm

PM4T,

The reason you don't see a lot of sense on these boards is that most reasonable people have given up trying to reason with extremists. I often see you banging your head against the wall and feel bad--you should take some time off and just enjoy the circus act. That's mostly what I do. You're not really going to convince extremists using reason--that's why they're extremists.


 +   Like this comment
Posted by Juan
a resident of Another Pleasanton neighborhood
on Apr 4, 2010 at 9:33 pm

Mr. TR O...

"Extremism in the defense of liberty is no vice. And moderation in the pursuit of justice is no virtue. "


 +   Like this comment
Posted by T. R. Ollman
a resident of Carriage Gardens
on Apr 4, 2010 at 9:36 pm

"Quoting instead of thinking is no excuse."


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