An article in nytimes shows that millions of Americans choose not to pay insurance premiums but instead only get insurance coverage when they need it because the premiums are more expensive than government penalties of not buying insurance and because simultaneously the government forces the insurance companies to cover anybody regardless of any pre-existing conditions.
Back in July of 2012 I explained that ACA is unconstitutional and that the SCOTUS was completely political and wrong but also I explained that ACA and the very concept of insurance are absolutely incompatible.
I am going to use two of my quotes from that journal entry here:
This means that in principle if the tax (fine) is raised from its current level (and it will have to be raised, otherwise ACA is completely unworkable, everybody who has to pay for insurance under the ACA will cancel insurance and only 'buy' it when they absolutely need to and then cancel again, once done with the bills) so if the tax is raised, the mandate becomes immediately unconstitutional and ACA has to go back to the supreme court!
The tax (fine) will be raised, because people who do pay for their insurance today will stop paying, because this tax (fine) is so low today compared to the insurance plan payments. There will be some people who will be subsidised under the plan and will not have to pay for insurance, so they will 'buy' their plans with the subsidies. Also the people who actually need insurance to pay them right now, because they are sick, they will obviously 'buy' into insurance, since they cannot be denied due to the pre-existing conditions.
But this means that huge number of people will drop out of insurance, and the only people in it will be a minority of those who didn't have it until now and those who need insurance to pay for their treatment.
Under this scenario, the insurance companies will cease to operate. But of-course what is likely to happen is that the government will bail out the insurance companies with tax (and borrowed and printed) money. In the short term the government may even have an influx of cash because taxes (fines) will be collected from people who had private insurance prior to ACA but would cancel it now and just pay the tax (fine). But in the long run this means that insurance will become extremely expensive because of lack of payers and the government will be bailing out insurance with tax money at the new expensive rates.
the quotes above explain that people who are allowed to buy insurance only when they get sick will do so because 1. Insurance will become more expensive but the penalty for not buying the insurance is going to be lower than the cost of insurance and 2. The insurance companies will be forced to accept everybody with pre-existing conditions.
This means that no insurance company can actually run an insurance business in this government system without getting government bailouts, be it via taxes or other mechanisms (TARP comes to mind).
It is amazing how gullible so many people can be, looking straight into the same information that I am looking at and not connecting the dots at all. I was ridiculed on explaining these extremely obvious points (extremely obvious if one takes 10 seconds to think them). Of-course people prefer not to think about anything but then they miss the most obvious consequences that are going right towards them because of past actions.
There are more predictions in that journal post I wrote back in 2012, they will all come true, especially the points about bailing out insurance companies and generally worsening the level of coverage.
Now, I am not arguing that people should go without insurance, I am arguing that government shouldn't be forcing anybody into any product or service at all, all of these matters should be left to the private sector, which takes care of things like insurance and like medical care for profit, which is the preferred way of running things - for profit, thus ensuring that things are done efficiently while providing good customer service, all of this is the exact opposite of how governments do business (inefficiently and without actually treating customers as clients).