Profoundly Immoral – Obama sticks the tax payer with the bill
Democrats were in full panic mode over the prospect of facing Obamacare on the 2014 ballot. The employer mandate is set to kick in January 1st, 2014. Recall, this mandate says employers with over 50 full-time employees must offer ‘affordable healthcare’ or be fined. The problem: Employers have turned to hiring part-time workers to avoid 50 FTE’s. Worse, a McKinsey study found 30% of employers were planning on paying the fines and dropping coverage because that was ‘cheaper’ than providing health insurance. Other studies have estimated rates could double or triple for existing coverage. Even the Democrats know having a third of the electorate dumped into exchanges and the other 2/3’rds seeing their rates sky-rocket is bad.
So Obama will ignore the law. Nothing has been legislated. Nothing has been passed by Congress – Obama will simply not enforce a critical piece of his signature legislation. So, in another naked abuse of Executive power Obama has saved the day.
Problem solved right? Not quite – The Individual Mandate is still going to be enforced. Remember, YOU MUST buy insurance or be taxed. It’s a tax, so says the Supreme Court. So off the to healthcare exchanges you go. Problem – it turns out the employer mandate was how the Government intended to find out who was eligible for healthcare subsidies. Employment and income verification from employers was critical to the model. This has now been ‘delayed’ so how will we know who qualifies for tax payer funded subsidies? We won’t know – we will be on the HONOR SYSTEM. What could possibly go wrong.
Uh, waste, fraud and abuse maybe? Tens of Billions of dollars worth. This is gallatically stupid.
The Administration announced this gem Friday July 5th. Cowards. It is 100% politically motivated. This is yet another Obama campaign bribe and down payment on single payer system funded by the American tax payer. You.
The Democrats need people on exchanges. The law has always been a giant wealth redistribution Ponzi scheme where young healthy Americans buy expensive insurance to subsidize crappy healthcare for elder Americans. They need these young people on the exchanges. Forcing them to pay a premium won’t get the job done so let’s put it on sale via honor system subsidies. Then once the exchanges reach a critical mass of participation Obamacare can’t be repealed. That’s why there is the huge push to have the NFL and NBA promote Obamacare. Like the roach motel, once you check in you never check out.
One last piece of good news – Bankrupt cities and states now see a path to cost savings. You. Watch as they drop healthcare for government employees and turn them over to the exchanges thus making it your problem. You don’t mind paying more taxes to fund Detroit and Chicago’s healthcare do you? Of course not.
Ultimately, the long term goal always has been and continues to be a migration to a single payer system. Period.
This law was thrust onto the American people over their objections. The law should have been ruled unconstitutional, instead the Supreme Court ‘re wrote’ the mandates to be taxes thus making it legal. Awesome. So this amateur administration sets off to implement this abomination. Recall the law was written by Congressional Aides and Special Interests with limited working knowledge of healthcare, the economy or business – which is to say it was poorly written and is having disastrous consequences on the economy. The Administration continues to pull threads trying to solve one problem, but instead they only cause 2 more. Your kids will pay the bill for their incompetence.
So, to summarize – Obama issues another fiat to steal another election. He also decides to let you self select your healthcare subsidies in a naked attempt to bribe you into joining an exchange. We will just add the cost to that little thing called the National Debt. Your kids and grandkids will be picking up the tab.
“The goal here is plain as day,” writes Roy. “The Obama administration is laser-focused on making sure that enough Americans enroll onto Obamacare-subsidized health insurance platforms, because if they do, it will be politically impossible for Republicans to repeal Obamacare in the future.”
Roy added: “Deliberately encouraging tens of billions of dollars of waste, fraud, and abuse in order to achieve a political objective is profoundly immoral.”
National Review’s Yuval Levin says the Obama Administration “seems to be operating under the assumption that the way to secure Obamacare’s future is to get as many people as possible into the system and receiving subsidies,” despite the “increase cost of the exchange subsidies.”
Making subsidies available without proof of eligibility would be very expensive and destabilizing to the insurance system, and would also require the retraction of such subsidies if the employer mandate ever does return. Coming up with other ways to prove eligibility would be very difficult at this late stage (as exchanges are supposed to start operating in three months), and would also be totally lawless—though I recognize that is a rather quaint and old fashioned concern in the age of Obama. Any losers in that process could sue, and the federal courts would have a hard time sustaining the administration’s novel approach to executive power. The exchanges are utterly central to the way Obamacare is supposed to function, and the delay announced yesterday leaves the prospects for their proper functioning even more grim than they already were.
The Obama administration’s short-term panicked desperation to avoid ObamaCare-related consequences in the 2014 midterms is only matched by their relatively longer-term panicked desperation to convince young and healthy Americans to get with the program en masse. They’re going to need a heck of a lot of people with relatively inexpensive health-insurance needs to participate in and subsequently subsidize the inherently riskier and more expensive insurance pools the program creates by deliberate design — a redistributive fact of which the law’s supporters and administrators are all too aware.
But, heck, as long as ObamaCare is offering what we’re promised will be this miraculously subsidized (affordable?) health care system, why shouldn’t municipalities with insolvent pension and benefit programs take this wondrous opportunity to siphon off some of their incurred costs and just ease them onto the national system? Problem, solved — amirite?