It looks like Trump is already backtracking on Obamacare, which doesn’t really surprise me. I voted for Trump in the general election for the reasons stated in my post, Hate Trump, Vote Trump, but I did not support him in the primary, and one of my main reasons was his lack of knowledge on economic issues, which he exposed again by saying after winning the election, that he would like to keep the “pre-existing conditions” provision in Obamacare.
Trump ran on a platform of “repealing and replacing Obamacare” and now he’s talking about keeping the very thing that makes Obamacare, Obamacare. Like many other “conservatives” that lack an understanding of basic economics, Trump seems to like the fact that Obamacare prohibits insurance companies from denying someone coverage if they have a pre-existing condition, but he doesn’t like the fact that Obamacare forces everyone to buy insurance.
What Trump and many others who should know better fail to understand is that you can’t have one without the other. If you were to force auto insurance companies to provide insurance for pre-existing accidents, would you buy insurance now or would you wait until after your accident? Would an auto insurance company be able to stay in business if they were forced to insure people after the fact?
This is precisely the reason Obamacare had to force people to buy insurance by threatening them with a penalty, because insurance companies would not be able to survive in this environment–and that’s of course because when you force insurance companies to do this, they are no longer in the business of “insurance.” With Obamacare, it turned out the penalty wasn’t high enough, which led many young people to realize it was better to pay the penalty than to buy the insurance.
Forcing companies to insure people with pre-existing conditions at the same rate as those who are healthy makes zero economic sense, and it’s unsustainable. It’s precisely the reason why premiums are going up, which is something Trump talked a lot about at his rallies. I’m looking forward to seeing how Trump plans to perform this magic trick, and how those who blindly follow him will justify this.
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