Tag Archives: massachusetts institute of technology

RomneyCare and ObamaCare architect: ObamaCare will cause insurance rates to rise dramatically – UPDATED

Well well well, who didn’t see this coming? The readers of my former college blog knew all about it as we explained how ObamaCare is designed to increase costs and insurance to such a point that the only “solution” would be a total government take over. Even Nancy Pelosi said that the bill was designed to make them “cry out for a public option”.

[I have nine pages of posts and links devoted to this subject on my old college blog starting HERE. To verify that we got it right and called it early just start on this link and proceed forward. Figuring out that ObamaCare was designed to do exactly this, and recognizing that the behavior incentivized by the program creates an economic death spiral – technically called an adverse selection spiral – which is designed to burden the system with such costs and regulation that it will collapse, was not difficult. It did not take an MIT Economist to see what so was obvious in the structure of ObamaCare and quite frankly this editor rejects the idea that Prof. Gruber just figured this out in some grand revelation recently. Anyone with some decent economics training could see this coming a mile away; yes it has always been that obvious – Editor.]

Via our friends at The Daily Caller:

Medical insurance premiums in the United States are on the rise, the chief architect of President Barack Obama’s health care overhaul has told The Daily Caller.

Massachusetts Institute of Technology economist Jonathan Gruber, who also devised former Massachusetts Gov. Mitt Romney’s statewide health care reforms, is backtracking on an analysis he provided the White House in support of the 2010 Affordable Care Act, informing officials in three states that the price of insurance premiums will dramatically increase under the reforms.

In an email to The Daily Caller, Gruber framed this new reality in terms of the same human self-interest that some conservatives had warned in 2010 would ultimately rule the marketplace.

“The market was so discriminatory,” Gruber told TheDC, “that only the healthy bought non-group insurance and the sick just stayed [uninsured].”

“It is true that even after tax credits some individuals are ‘losers,’” he conceded, “in that they pay more than before [Obama’s] reform.”

Gruber, whom the Obama administration hired to provide an independent analysis of reforms, was widely criticized for failing to disclose the conflict of interest created by $392,600 in no-bid contracts the Department of Health and Human Services awarded him while he was advising the president’s policy advisers.

 

UPDATE – CNBC’s Jim Cramer: CEO’s scared to hire because of ObamaCare. Moving more operations overseas