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politicsonfire

Obamacare

by politicsonfire

 - Tue, Apr 13 2010

Obamacare

What is Obama's ultimate goal of Obamacare?

Insurance companies are a business. They answer to their stockholders in the way they run the business. They are responsible to optimize the return on investment. They are tasked with getting the highest return possible.

As the Obamacare is implemented and the preexisting condition patients become part of the system the insurance companies will have to raise the prices of coverage to cover the additional costs. Medicare and medicaid already have a cost to service issue. The reimbursements do no cover the cost of providing service now. Many doctors, clinics and hospital are already turning patients away. The additional patients that will be added will drive up the price of insurance coverage. The insurance coverage will be available to buy but it will be unaffordable. Obama will then implement price ceilings . This will drive insurance companies out of business. The investors in the insurance companies will look at the returns they can get from the insurance industry and will decide that they should invest elsewhere The government will then step in and take over the healthcare industry.

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