Under Obamacare, health insurers have strong incentives to attract the healthy (on whom they make a profit) and avoid the sick (on whom they incur losses). After enrollment, the incentive is to over-provide to the healthy (to keep the ones they have and attract more of them) and to under-provide to the sick (to encourage the exodus of the ones they have and discourage enrollment by any more of them).
|John C. Goodman is a Senior Fellow at the Independent Institute, President of the Goodman Institute for Public Policy Research, and author of the widely acclaimed Independent books, A Better Choice: Healthcare Solutions for America, and the award-winning, Priceless: Curing the Healthcare Crisis. The Wall Street Journal and the National Journal, among other media, have called him the Father of Health Savings Accounts.|
Obamacare remains highly controversial and faces ongoing legal and political challenges. Polls show that by a large margin Americans remain opposed to the healthcare law and seek to repeal and replace it. However, the question is: Replace it with what?