Tuesday, October 15, 2013

The Real Math of Obamacare

You’re not exempt from math if you’re a Republican, and you’re not exempt from math if you’re a Democrat. You’re not exempt from math if you’re a liberal, and you’re not exempt from math if you’re a conservative. You still have to do math.

Pull your head far enough out of your politics to have an original thought.

January 1st, 2014 every insurance company is required to take on anyone, no matter how sick they are, and they cannot charge them more than someone who is not ill…You're 500 lbs. you have diabetes, you’ve got cancer, you’ve had three heart attacks you’re going to pay the exact same premium as a perfectly healthy person.

I understand the motivation, and the nobility and the moral imperative behind that. I get that. But that doesn’t change the math, the math is that those people get sick more often and run up more medical bills than someone who is healthy. Duh.

If they now have to be covered by the same company that you’re covered by and they’re required to take them… then the math kicks in. Because the amount of money that company was paying out to the medical community is going to go way up. They’re going to pay out to the medical community per person more than they ever have before… what they pay out per person is how your premium is determined – plus profit.

Everyone is going to be charged the same. Translation you are going to pay higher premiums to keep the insurance company open, so they don’t go broke. Because they are now going to have to cover people that they didn’t have to cover before… sick people.

It’s a nice moral imperative, but it doesn’t change the math.

There are only two types signing up for Obamacare.  1. the already sick and 2. the low income group that will basically get it for free due to subsidies.  The only way Obamacare can function is for the younger, healthy demographic to sign up also.  It is these people that should stay as far as possible from Obamacare.  Research has shown premiums for the under 30 healthy group will easily be double what they pay currently.  Why should they sign  up?  It makes no sense whatsoever.

Translation. Your health insurance premiums are going to go WAY up. They HAVE to. It’s not that I’m mad about it, it’s not a political statement. It’s that I know how to do math.

Your premium went way up, your employer paying them might affect your raise. It might even affect the stability of your job because they might not be able to pay everybody, because they have higher costs of operating now… you paid for it, it’s called a pass-through, you’re going to pay for it.

46% of Americans pay NO income tax.

This is not an angry thing, it’s a math thing… we are not exempt from math. Just because you think social security is a good idea does not mean you are right, you still have to do the math.

If I put 10% of the money that I pay into Social Security I can beat what social security administration does with the other 90%, that’s how bad it sucks, mathematically. In other words that money is not invested it is sent to Washington and promptly stolen by them.

You don’t even get back what you pay in. Mathematically this is known as, sucks….

We got a mess up there…

We are fortunate to have men like Dave Ramsey who can keep a calm, cool presence while explaining the horror that is Obamacare. 

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