As I talk to fold about the healthcare law, I am astounded at how little most people understand it.  Many believe it is going to provide free healthcare while others think it is going to provide cheap insurance.  Both of these are essentially wrong but let me explain the basic fundamental flaw found in Obamacare.

The law basically says that you must buy health insurance or pay a fine.  OK, let’s say that health insurance will cost $4000 per year and the fine for not buying it is $695.  What do you think most people would do in tough economic times?   What makes this worse is that if that same person got sick, they would simply run down and buy insurance since a company may not exclude a pre existing condition or charge them more.  So a lot of people (more than you think) will simply “game” the system.   Even worse is the employer scenario where the employer may simple dump his coverage if the fine is less than the cost of employee insurance.  Over 1000 companies have been granted exemptions from the new health care plan for that very reason.
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As a final thought, Congress exempted themselves and their staff from the health care plan that they passed.