Tuesday, October 22, 2013

The Anatomy of a Mistake

The ACA is a giver and taker system that depends on the young and healthy to form the backbone of the system. 

The glaring problems are that 15.9 percent of young people are out of work, and there is a nationwide "failure to launch" trend that places many in that demographic at home with their parents. The young aren't in nearly the position to carry Obama's legislation as they were to carry Barry O himself in 2012.

The projected increase in individual premiums here is one of the highest of all states at an average of 115 percent in the 24-34 demographic. That accounts for over one million Virginians, whose age and good  health make them the least of the beneficiaries. The young will then likely take the penalty, and opt out of the system rather than take a rate increase that they could never have afforded anyway.

That leaves the system with no money to digest, and grinds the giver-taker paradigm to a halt, leaving the young unprotected, companies without revenue to cover the program and reconcile the cost of joining the exchanges which was the whole premise of the thing in the first place. 

How many of those one million can afford to carry the system on their backs? Compared to the impending passing of the baby boomer generation, whatever that number turns out to be will not be enough to stifle the cost. The young can't pay it, the old can't survive it, and the system cannot abide it.

VA GOP Caucus


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