Death by a thousand advertising cuts

<div _ngcontent-c14 = "" innerhtml = "

Obamacare is still the law of the country, but the Trump administration and Republicans in Congress are determined to undermine the law in the hope that it will stop working. One of the strategies is to reduce the advertising funding of ACA insurance plans. If a recent study is an indication, this strategy could work. You see, one of the key elements of Obamacare was creating a market where people could buy insurance plans (often subsidized). The success of this market depends on having enough clients, particularly relatively healthy clients, to cover the cost of caring for people with serious illnesses. Advertising is essential to attract customers to this market. Under the Obama administration, this advertising budget exceeded $ 100 million a year. President Trump cuts the budget by 90%.

Does less advertising mean fewer customers?

In a study conducted by Sarah Gollust of the University of Minnesota, researchers examined the volume of ACA television advertising across the country in 2014, counting the number of additions broadcast during broadcasts. Local TV news across the country. They counted "You Can Buy Insurance" commercials funded by the federal and local governments, as well as political ads, many of which were designed to denigrate the people of ACA. They found strong evidence of the link between ads and behavior. Here is a picture of their results:

It always surprises me that a politically moderate health reform plan that fosters insurance markets – markets, people, markets! – is undermined by an allegedly pro-market political party. If the Obamacare insurance market collapses now, Republicans will be to blame. It should not be like that.

">

Obamacare is still the law of the country, but the Trump administration and Republicans in Congress are determined to undermine the law in the hope that it will stop working. One of the strategies is to reduce the advertising funding of ACA insurance plans. If a recent study is an indication, this strategy could work. You see, one of the key elements of Obamacare was creating a market where people could buy insurance plans (often subsidized). The success of this market depends on the presence of a sufficient number of clients, particularly relatively healthy clients, to cover the cost of caring for people with expensive illnesses. Advertising is essential to attract customers to this market. Under the Obama administration, this advertising budget exceeded $ 100 million a year. President Trump cuts the budget by 90%.

Does less advertising mean fewer customers?

In a study conducted by Sarah Gollust of the University of Minnesota, researchers examined the volume of ACA television advertising across the country in 2014, counting the number of additions broadcast during broadcasts. Local TV news across the country. They counted "You Can Buy Insurance" commercials funded by the federal and local governments, as well as political ads, many of which were designed to denigrate the people of ACA. They found strong evidence of the link between ads and behavior. Here is a picture of their results:

It always surprises me that a politically moderate health reform plan that fosters insurance markets – markets, people, markets! – is undermined by an allegedly pro-market political party. If the Obamacare insurance market collapses now, Republicans will be to blame. It should not be like that.