Obamacare’s shortcomings run far deeper than anything that can be fixed by a slick marketing campaign and fraudulent television commercials. Mrs. Sebelius‘ department expects to spend $4.4 billion by the end of the year on grants to help states set up insurance exchanges. That’s double last year’s estimate; we can expect the final tally to climb yet higher. The state of California alone has spent more than $900 million to establish an Obamacare health care exchange. By contrast, privately funded Esurance set up a nationwide exchange similar to what the government has ordered with an initial outlay of $5.5 million in venture-fund investment in 1999 and a second round of $34 million a few months later.
Government just isn’t very good at health care. Obamacare devotees treated the law like a health care version of “the Field of Dreams,” believing that if they built it, people would come. They haven’t. In addition to spending billions to build it, states are forced to spend tax dollars to cajole prospective customers to sign up. California is paying 20,000 part-time “enrollers” a bounty for every person they push into the system.
Colorado is a state that has “bought in” to the Obamacare “Field of Dreams”. They have even gotten a head start by implementing gender neutral pricing and mandatory maternity coverage. The initial effect of these mandates has been higher insurance premiums leading, most likely, to more uninsured. Undoubtedly, the state has told themselves that when Obamacare kicks in and subsidies become available everyone will sign up. One thing is for sure, the sick will sign up (adverse selection) and those that qualify will enroll into Medicaid, or be enrolled when they show up at the hospital. The rest of us that are affected, primarily individual policyholder or potential individual policy holders, we’ll have to wait and see.