This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Morici: Hardly Time to Call Obamacare a Success

NEW YORK (TheStreet) -- With 8 million Americans enrolled in health insurance through federal and state exchanges, President Obama has declared the Affordable Care Act a success. That's disingenuous, and big changes are needed to make the law work well.

The ACA's goals were to provide reasonably priced medical care to the 45 to 50 million people who had been uninsured and slow health care cost increases. It is hardly clear those goals will be accomplished.

The rollout of the exchanges to provide market coverage to individuals was botched. Scarcely a surprise, the Department of Health and Human Services and state agencies could not replace the millions of private decisions facilitated by free markets with computer software.

When the Web sites failed, public focus shifted from measuring ACA performance against its original objectives, and with the Web sites now functioning, the ACA should be evaluated against its original objectives.

Must Read: Janet Yellen Should Come Down From Her Ivory Tower

Many of the 8 million enrolled to replace individual and small business policies, canceled thanks to ACA rules, or to obtain federal subsidies available only through the exchanges.

Expanded eligibility rules permit Medicaid to cover additional millions in the 25 states. In other states, legislatures have declined to participate, in part because of concern the federal government will not cover 90% of the cost long term as stipulated under Obamacare.

It remains to be seen how many Americans will remain uninsured because of Washington's lack of credibility in many state capitals and the program's inability to control costs enough to permit most employers to keep offering coverage.

The ACA requires health insurance policies to pay for a wider and more expensive scope of services than many individual and small business policies covered prior to the law. In many counties, only a few insurers chose to offer policies on exchanges. Absent competition, insurers lacked incentives to bargain as hard as before with hospitals and other providers, further raising premiums and out-of-pocket costs.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $126.00 -0.35%
FB $87.55 0.30%
GOOG $522.86 -0.10%
TSLA $279.72 -0.11%
YHOO $38.61 -1.96%

Markets

DOW 17,683.58 -46.53 -0.26%
S&P 500 2,068.76 -8.02 -0.39%
NASDAQ 4,991.94 -17.2740 -0.34%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs