Health Economists On The Left And Right Are Predicting An Obamacare Death Spiral
By a
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That is the same assessment Obamacare critic
Goodman, who heads the
A study by Avalere predicts that next year more than one-third of the exchanges will have only one insurer left. More than half the exchanges will have no more than two. "We were promised competition; what we are getting instead is monopoly," he said.
Both health economists point to a problem on the demand side of the market: too many people are waiting on the sidelines while they are healthy and signing up for insurance only after they get sick.
Reinhardt says that
Goodman says an even bigger source of trouble is on the supply side. "Health plans are being allowed to dump their sickest, most costly enrollees on their rivals with impunity." As a result, "insurers face perverse incentives to attract the healthy and avoid the sick."
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