Obamacare has a way of making me feel like a genius.
This is because every prediction that I have made (along with millions of other Americans who are awake ) about how Obamacare would fail has either come true, or is on the way to becoming true. Then again, predicting the demise of a centrally planned highly complex system does not take genius, just honesty and a tiny bit of knowledge of history.
Today’s news involves what is known as an “insurance death spiral”, in which an insurance pool has too many sick people and not enough money to cover claims.
Read for yourselves, Liberals, from NPR.org <link>:
CoOportunity Health has failed. CoOportunity Health was the second- largest co-op in the country in terms of membership, and one of the largest in terms of the federal funding it received.
How about that: massive support from the federal government, but it still failed…
…CoOportunity hit a kind of perfect storm, says Peter Damiano, director of the University of Iowa’s public policy center. First, the co-op had to pay a lot more medical bills than those in charge expected.
Hey, Peter, can you explain to Obamacare supporters, those wacky central-planning-loving destroyers of our health and wealth, what this means again?
CoOportunity Health’s pool of people was larger than expected, was sicker than expected. So their risk became much greater than the funds that were available.
Ah ha, yes, thank you Peter. Sounds like an insurance death spiral, and also like bankruptcy.
And the result for those who signed up for this insurance? THEY’VE LOST IT.
It was a heck of a Christmas for David Fairchild and his wife, Clara Peterson. They found out they were about to lose their new health insurance.
“Clara was listening to the news on Iowa Public Radio and that’s how we found out,” Fairchild says. They went to their health plan’s website that night. “No information. We still haven’t gotten a letter about it from them.”
By the way, there are 120,000 other Iowans in the same boat as Clara and David.
What does this mean for Obamacare nationally? Iowa Insurance Commissioner Nick Gerhart has the answer:
If the second-largest can’t make it, how viable are the other ones? I don’t know. But at the end of the day they didn’t have enough capital to support 120,000 members.