indexWhatever one thinks of the Affordable Care Act or as it is widely known, “ObamaCare”, the question has to be asked: if by March 31st, when open enrollment ends and not enough individuals have signed up to cover the unhealthy and the elderly will the insurance companies receive a bailout?

Last month, Sarah Kliff, a Washington Post Health-care expert stated, “These next three months will be pretty important for seeing whether the law hits the Congressional Budget Office projection of 7 million enrollees in 2014 – or, as it has in the first three months of enrollment, continues to fall short.”

The Affordable Care Act has always been predicated on the premise that enough young & healthy individuals sign up and the Congressional Budget Office projects it will need around 7 million of these individuals.

The problem is the administration is not releasing the demographics on who has fully enrolled to completion, with actually paying for healthcare.

Embedded into Sections 1341 and 1342 of the Affordable Care Act, states insurance companies can be bailout if too few of the target demographics do not sign up.  

Back on Dec 18, Jason Furman, chairman of the Council of Economic Advisers, was asked what is the backup plan if not enough individual’s sign up, what is Plan B?

The only thing he continued to reiterate, “Plan A is to do the most aggressive enrollment efforts you can, with young people, using social media.”

Basically the only plan the administration has is to hope they get enough young and healthy people to sign up, but I have learned in my thirty years in the military; hope is not a strategy!

There have been too many exemptions, delays, and waivers; with the most notable one, postponing the employer mandate. 

This question and the administration needs to be asked, what happens if the number they need to keep the system solvent does not materialize and insurance companies are faced with shrinking revenues and rising costs?

Will the insurance companies receive a billion dollar bailout to keep them solvent?

This is the biggest unanswered question.

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