How can smart people be so dumb? I guess to keep their ideology going.

2013

In an op-Ed October 20th Paul Krugman takes to task those who claim the premiums in the Obamacare exchanges constitute rate shock. But that’s not the real point, rate shock or not the premiums are high and not, as claimed by New York, low cost insurance. In a few states, including New York and New Jersey, the premiums are lower than for the old individual market, but that’s because those states required enrollment without regard to pre-existing conditions long before anyone ever heard of Obamacare and thus their premiums were extraordinarily high to begin with. I once scanned available plans on the old healthcare.gov for New Jersey and found a plan that cost $100,000 a year, as absurd as that may be.

Back to the real point; in making his case on premiums Krugman says:

Specifically, they were comparing the premiums young, healthy men were paying before reform with the premiums everyone — including those who previously couldn’t get insurance because of pre-existing conditions — will pay under the new system. Oh, and they also weren’t taking into account the subsidies many Americans will receive, reducing their costs.

Now I have to ask, if the issue is the level of premiums that will be paid by someone, how relevant is, “Oh, and they also weren’t taking into account the subsidies many Americans will receive, reducing their costs?” The total premium determines the amount of the subsidy, the subsidy paid for by the taxpayers. So, taking into account the subsidy simply distorts the true cost of the insurance.

Do I get a Nobel prize?