The Obamacare Exchanges are Complete Failures

So if the Obamacare exchanges don’t work, why does anyone trust the government to deliver healthcare?

This blog reported on the failure of the Obamacare exchanges back in May. The situation is only getting worse. Now, the Associated Press has even admitted to it: “State Obamacare Exchanges Struggling With High Costs and Disappointing Enrollment.”

State-run health insurance markets that offer coverage under President Barack Obama’s health law are struggling with high costs and disappointing enrollment. These challenges could lead more of them to turn over operations to the federal government or join forces with other states.

Hawaii’s marketplace, the latest cautionary tale, was awarded $205 million in federal startup grants. It has spent about $139 million and enrolled 8,200 customers for individual coverage in 2015. Unable to sustain itself, the state marketplace is turning over sign-ups to the federal HealthCare.gov for 2016.

Twelve states and the District of Columbia fully control their markets. Experts estimate about half face financial difficulties. Federal taxpayers invested nearly $5 billion in startup grants to the states, expecting that state markets would become self-sustaining. Most of the federal money has been spent, and states have to face the consequences.

“The viability of state health insurance exchanges has been a challenge across the country, particularly in small states, due to insufficient numbers of uninsured residents,” said a statement from the office of Hawaii Democratic Gov. David Ige, announcing last month that his state’s sign-ups were being turned over to the federal government.

So if the government is so wise and competent, how could they get it so wrong? They promised us it would all work and that we would be much better off with the state exchanges.

Would we see such massive failures in the private sector? Arguably, health insurance companies can fail, but when they do they go bankrupt and their assets are purchased by the health insurance companies that made smarter choices leading to their success.

Nothing like that is happening here. The Federal Government has not been more competent. It simply has more ways to create money to pay for the failure.

So the entire nation, if it were looking at this problem rationally, would have rejected Obamacare and moved on to entirely private health insurance. Instead, everyone insists that we must continue and move on to bigger failures.