Externality is in one place defined as a “consequence of production ignored in pricing.” Also see the following description - “a factor such as environmental damage that results from the way something is produced but is not taken into account in establishing the market price of the goods or materials concerned.”
This article speaks of the many CONSEQUENCES and ‘hidden’ COSTS of Obamacare. http://online.wsj.com/article/SB10001424052748704548604575097602436388116.html?mod=wsj_share_facebook
But under the above definition, the topic at hand seems only to meet a few of the requirements of an externality. PRICING is not the direct issue. Nothing is truly PRODUCED. Yet DAMAGE will result and consequences are being IGNORED by many of those in favor of socialistic health care.
Even if this may not qualify as externality, economic theory definitely applies, even in as simple a way as stating the question, “Is the cost of the risk worth paying for the perceived benefit?”
Since it is not a potential risk but a guaranteed power grab debt loving monster, I am utterly opposed.