Assessing The Insurance Exchanges

After reading this NBC News piece on the Obamacare health insurance exchanges, you can’t help but ask yourself why anyone could be against this? Who would oppose $115 monthly premiums, with more comprehensive coverage than currently available, all conveniently purchased from something akin to Orbitz?

This de facto press release really doesn’t tell the picture.

Cato’s Michael Cannon helps shed light on what implementing these exchanges will entail: punitive tax penalties on employers, reduced economic output, and job loss.

Avik Roy delves further, showing how young single people will face higher costs even when you factor in the subsidies they’ll receive to purchase health insurance through the exchanges thanks to Obamacare’s “community rating” provision.

Obviously these estimates aren’t stone-cold lead-pipe locks. But these estimates don’t disregard the law of supply and demand. President Obama seems to think he can repeal this most basic of economic principles. Don’t count on it.

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