Avik Roy breaks down a very difficult metric the government seems to have no interest in measuring–how many people who signed up for Obamacare were previous uninsured:
McKinsey, the leading management consulting firm, has been conducting monthly surveys of the exchange-eligible population under the auspices of its Center for U.S. Health System Reform. McKinsey’s most recent survey, conducted in February with 2,096 eligible respondents, found that only 48 percent had thus far signed up for a 2014 health plan. Within that 48 percent, three-fifths were previously insured people who liked their old plans and were able to keep them. The remaining two-fifths were the ones who signed up for coverage on the Obamacare exchanges.
Of the Obamacare sign-ups, only 27 percent had been previously uninsured in 2013. And of the 27 percent, nearly half had yet to pay a premium. (By contrast, among the 73 percent who had been previously insured, 86 percent had paid.)
Put all those percentages together, and you get two key stats. Only 19 percent of those who have paid a premium were previously uninsured. Among those that the administration is touting as sign-ups, only 14 percent are previously uninsured enrollees: approximately 472,000 people as of February 1.
And why are the previously uninsured people not signing up? Because it is now too expensive–thanks to Obamacare.
Here’s an important finding from McKinsey. The authors of the study—Amit Bhardwaj, Erica Coe, Jenny Cordina, and Mahi Rayasam—asked those who decided not to enroll in a plan what their reasons were for doing so. The most frequent reason—cited by 50 percent of respondents—was that “I could not afford to pay the premium.” Only 27 percent cited technical challenges; 14 percent said they couldn’t find a plan that met their needs. 21 percent said they were still deciding.
This is the biggest problem with the way the “Affordable Care Act” approached coverage expansion. The reason why so many Americans are uninsured is because health insurance in this country is too expensive. Obamacare increases the underlying cost of health insurance, and then uses taxpayer-funded subsidies to offset those costs for some.
Plus, you have to consider that nearly 5 million Americans had their policies cancelled–with many more future cancellations, notwithstanding the most recent decision to extend ineligible plans till 2016.
Keep in mind another fact: According to the Associated Press, at least 4.7 million Americans who shop for coverage on their own have had their plans canceled because they don’t conform to Obamacare’s regulations. So Obamacare has disrupted the coverage of millions of Americans, requiring many to purchase costlier policies with higher deductibles and narrower doctor networks, for a fairly modest expansion of coverage.
According to the administration, total sign-ups now exceed 4 million. But on a recent HHS conference call, Obamacare implementation point man Gary Cohen was asked the key question: how many of the people who have signed up for Obamacare were previously insured? His response: “That’s not a data point that we are really collecting in any sort of systematic way.”
So. The whole point of Obamacare was to expand coverage to the uninsured. But for the tens of thousands of regulations that the law has imposed on the country, its authors never bothered to try to measure the one thing that they were actually trying to achieve. That about sums it all up.