Obamacare: More Smoke and Mirrors
Posted by Steve Markowitz on December 4, 2013
It is an understatement that the rollout of the Obamacare website has been a dismal failure. While this week there is improvement in the operation of the portal, it remains full of glitches, irrespective of the Administration’s claims otherwise.
Assuming for the time being that the front end of the website is actually working, there are credible reports that the backend of the system is not. The front-end of the website is the part that consumers see and use to sign up for health care under Obamacare. Unseen to consumers is the all-important backend that is required to communicate with the insurance companies and various governmental departments in order to set prices for consumers and pay the insurance companies.
According to the reports, the backend of the system has not even yet been designed. As indicated in the video below, insurance companies will need to estimate the costs of plans and submit request for governmental reimbursements based on these estimates to the government for payment. This is an unimaginable way to do business. Imagine the chaos if every time a purchaser made a purchase on Amazon.com that Amazon did not know the actual costs they pay for the merchandise. How long would they remain in business?
It is not possible to determine the extent of the damage the Affordable Health Care Act will inflict on the US economy. It is clear that this damage will be somewhere between huge and catastrophic.
Nancy Pelosi once informed Americans that we would have to pass Obamacare before knowing what was in the bill. Now the American people must wait for the damages to occur before knowing the extent of them.