Obamacare: Death By A Thousand Advertising Cuts

(HealthCare.gov via AP)

Obamacare is still the law of the land, but the Trump administration and Republicans in Congress are determined to undermine the law in the hope it will cease to function. One of the strategies is to cut advertising funding for ACA insurance plans. If a recent study is any indication, that strategy might work. One of the key components of Obamacare, you see, was creation of a marketplace where people could shop for (often subsidized) insurance plans. The success of this marketplace depends on bringing in enough customers, especially relatively healthy ones, to cover the cost of caring for people with expensive illnesses. Advertising is key in bringing customers to this marketplace. Under the Obama administration, this advertising budget exceeded $100 million a year. President Trump is cutting the budget 90%.

Will less advertising mean fewer customers?

(To read the rest of the article, please visit Forbes.)

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