Tuesday, September 08, 2015

How to misinterpret data

Obamacare Signups Near 10 Million in Midyear Report

This is a great lesson in misinterpretation.  This quote is from the end of the article:
""Consumers from coast to coast are continuing to show how important health coverage is to their families," Health and Human Services Secretary Sylvia Burwell said in a statement. The figures released Tuesday cover the period through June 30."
Let me see here.  We pass a law that says everyone HAS to do something.  Then, some people abide by the law, and voilà, we have proven how important health coverage is to people.  Well, it might be important to people, I don't know, but the fact that people are signing up certainly doesn't show any such thing.  It only shows that people are signing up because otherwise they face a fine, and, according to this article, 84 percent of those that signed up are eligible for tax subsidies.  So, yeah, it's probably better to sign up and get free, or at least reduced cost coverage, than to not sign up and pay a fine, which is scheduled to increase substantially this year from last.  So, what this really shows is that people would rather spend money and get something than spend money and get nothing.  Yawn.  Unfortunately, this law will only lead to increasing healthcare expenditures, while hiding the true cost of healthcare from consumers.  In the meantime we can just go about pretending it's all good.

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