Entitlements are self-sustaining
It is almost a law of nature that once established, an entitlement will only grow. The political left understands this perfectly – witness Social Security, Medicare, Medicaid, and now Obamacare.
Consider the health insurance exchanges in the Affordable Care Act. To be financially sustainable, the exchanges required that at least 40 percent of enrollees be healthy to offset those individuals who would need more medical care. The exchanges have never come close to the 40 percent mark and consequently health insurance companies bailed out of participating in the program.
That is until the COVID-19 crisis hit. As people lose their jobs and consequently their employer-paid health benefits, they are either signing up for Medicaid or entering the Obamacare exchanges where insurance premiums are subsidized by taxpayers.
The insurance companies understand this and are now jumping back into the exchanges with their plans. (here) With trillions of government dollars now sloshing around in the economy, it is no surprise that health insurance companies are increasing their role in government entitlements such as Obamacare.
One can only hope that after the COVID-19 crisis passes, private industry will again thrive. It is definitely not the trend in the United States.