DEAR EDITOR:

Here is a theory on the reason for increased health care premiums for Obamacare.

Say you have 400 people, 200 of them pay premiums of $100 each for a total of $20,000; and 200 people don’t have insurance for one reason or another.

Then the government starts talking about getting insurance for everyone.

The insurance companies are not stupid. They start to take steps to get in front of what is going to happen. They know that it will cost $40,000 to insure 400 people, so they double the amount of the premiums for the 200 people, thus they have covered the cost of those who don’t have insurance (now they do).

Then to add insult to injury, the insurance companies see that they can get subsidies from the government for those people that don’t have insurance. Good, now they can almost double their profit.

They do help the medical institutions by increasing the deductible, as well as getting some subsidies paid directly to the medical institutions.

Now imagine the number of people in our country and do the figures from there. So what is wrong with ACA? Guess who is paying for this? Remember this is just my theory. But did it really happen?

DUANE SACKETT

Hubbard