Example: A prop falls on you, and you are majorly injured. You have no health insurance at the time of injury. However, you get on your phone/laptop, and buy health insurance. Going forward, the bills get paid.
Ergo, YOU HAVE NO INCENTIVE TO PURCHASE PRIOR TO NEED!!!!
I guess Maine figured this out.
Here's the Death Spiral Quote from the article:
According to Rep. Jonathan McKane:"Younger, healthier people, they just can't afford those high rates, and so they drop out of the market, which concentrates the pool into older, sicker people; meaning that the insurers have to pay out more in claims which raises rates yet again and puts us into this insurance rate death spiral that we're in... We need to get the younger, healthier people in the market, paying the premiums but not making the claims."
Congress defunded the Exchanges this week. The Maul is being pulled down.