Health Insurance Exchanges Waste Taxpayer Money

dollarsignObamacare may surpass Cash for Clunkers to become the prime example of federal taxpayer resource mismanagement. For every dollar in premiums for exchange coverage, taxpayers paid 94 cents in subsidies to either enroll people or encourage them to do so. Had federal dollars used to set up exchanges been incorporated into premiums instead of having taxpayers front the difference, premiums would have more than doubled. Costs were nearly $1000 lower per enrollee in Republican-controlled states compared to Democrat. Administrative costs for the exchanges were nearly 3 times as large in Democrat states(27 cents) as Republican(10 cents). Many states, such as Oregon and Massachusetts, are getting rid of their exchanges already. Nevada and Maryland are likely to shut theirs down as well.  Minnesota and Hawaii are struggling with exchange problems. Much of the money for state-run exchanges has not been well spent. As Milton Friedman warned us years ago: “Very few people spend other people’s money as carefully as they spend their own.” The reduction of administrative expenses is what allows doctors and medical facilities on MediBid to offer exceptional pricing on medical care.
Conover, Chris. “Obamacare Exchanges Squander Taxpayer Dollars By The Boatload.” Opinion. Forbes, 12 May 2014. Web. 28 Sep 2014.
NCPA Staff. “Waste of Taxpayer Dollars in Exchanges.” Daily Policy Digest. National Center for Policy Analysis, 21 May 2014. Web. 28 Sep 2014.

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