Moral hazard and adverse selection at work in Obamacare

This article reports on some problems Obamacare is suffering: http://www.investors.com/politics/editorials/obamacare-suffers-three-major-blows-in-one-week/.

A money quote:
"Why will 2017 rates spike even higher? In addition to the cost of complying with ObamaCare’s insurance regulations and mandates, there’s the fact that the ObamaCare exchanges have failed to attract enough young and healthy people needed to keep premiums down. Plus, two industry bailout programs expire this year, Tavenner notes.

"Oh, and she admits that people are gaming ObamaCare just like critics said they would: buying coverage after they get sick — since insurance companies can no longer turn them down or charge them more — then dropping it when they’re done with treatments. 'That churn increases premiums. So you have to kind of price over that.'”