Monday, April 28, 2014

ACA Exchanges at Risk

President Barack Obama says he has enrolled 7.1 million Americans through his new health insurance exchanges. If so, that may prove to be the easy part: the Affordable Care Act creates so many incentives for enrollees to drop their coverage that maintaining those enrollment numbers may start to resemble something like pushing millions of people up a greased poll.

For Obamacare to work, people must enroll and stay enrolled. An estimated 20 percent of those who signed up have yet to pay their first premium, and as many as 5 percent stopped paying after the first month. If too many drop out, premiums could climb until the exchanges collapse.

Unfortunately, those numbers may rise as Americans learn about the financial incentives Obamacare creates for healthy people to drop their coverage, save their money and wait until they get sick to re-enroll.

http://finance.townhall.com/columnists/michaelfcannon/2014/04/28/aca-exchanges-at-risk-n1830177?utm_source=thdaily&utm_medium=email&utm_campaign=nl 

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