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What Is the Obamacare "Death Spiral" -- and Can It Be Stopped?


What Is the Obamacare "Death Spiral" -- and Can It Be Stopped?

Since before the Affordable Care Act was signed into law, a vocal group of Republican opponents have been warning that Obamacare would destabilize the private insurance markets. One of their biggest concerns was that only sick people would purchase coverage, which would ultimately send Obamacare into a "death spiral" that would only end when the program became prohibitively expensive for both insurers and consumers.

Ironically, some of the same lawmakers warning of an impending death spiral have taken a series of steps almost certain to usher in that very calamity. Let's examine how and why Obamacare is at risk of a death spiral -- and find out whether it can be stopped.

Image source: Getty Images.

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Source: Fool.com


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