"Adverse Selection Death Spiral"

In Adverse Selection Death Spiral Turk Turon sums up at least some of the reasons ObamaCare is a Bad Idea:

In New York State, insurance regulations require insurers to cover people with preexisting conditions and expensive healthcare needs at the same rates as healthy people who don't have such conditions. The result has been a very large increase in health insurance premiums for all.

It did not take long for healthy people to realize that they were subsidizing the others. Many healthy people dropped their insurance because, for them, the option of paying for all of their health care costs directly was much less expensive.

Turk cites this New York Times article; go RTWT.