Elections And Laws Have Consequences

America was promised, “If you like your health care plan, you can keep your health care plan.” Many Americans believed that and were told that the people who were saying it wasn’t true were fear mongering. Well, here we are, ObamaCare is about to be in force, and we have discovered that the warnings were true. There is now a website called MyCancellation.com that shows cancellation letters from health insurance providers to policy holders. In some cases insurance premiums of the people who have received these letters will increase 300 percent.

Meanwhile, many insurance executives have been intimidated to the point that they are afraid to speak up about the damage ObamaCare will do to healthcare in America. Yesterday National Review posted an article about some of the comments health-care consultant Larry Thompson is hearing from insurance company executives.

The article reports:

Thompson predicts that by the end of next year, two phenomena will begin to unfold: first, that insurance companies, taking losses, will begin to remove themselves from the federal exchanges, and second, that wait times for doctors will rise. He even suggests that some of the exchanges may close by 2015. 

The crux of the problem: “Expectations are high, and delivery is going to low. When those two things converge, the law is going to get a pretty bad rap.”

We are only beginning to see the negative impact of ObamaCare.

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A Simple Guide To ObamaCare

Heritage.org posted an article detailing who is impacted by ObamaCare. The simple answer is everyone, but they posted an detailed list:

If You Have Insurance Through an Employer:  The administration claims that employee-provided coverage will not change–but it will. The administration promises better coverage, but there is a large price tag on that coverage. ObamaCare also requires maternity care for men and for women past child-bearing age. They have to pay for that coverage.

If You Buy Insurance Yourself:  If your insurance is not Obama-compliant, you will lose it. Your new policy will have higher premiums and a smaller network of doctors and hospitals.

If You Qualify for Subsidized Insurance:  Many Americans will be forced to buy insurance plans they do not want subsidized by other taxpayers. The $1.8 trillion spent on exchange plans and Medicaid will be a burden for future taxpayers.

If You Are a Senior Citizen on Medicare:  Half a trillion dollars was taken out of Medicare to fund ObamaCare. The reductions in Medicare spending could cause 15 percent of hospitals to become unprofitable by 2019, and 40 percent to become unprofitable by 2050. That could significantly impact senior citizens access to healthcare.

This really does not sound like a good deal for anyone.

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Gagging The Opposition

The Obama Administration has been known to use Chicago-style political tactics to silence its opposition. Evidently it has been using those tactics on the insurance industry to silence comments on the fiasco the roll-out of ObamaCare has been.

CNN reported yesterday:

Laszewski, who’s been a vocal critic of Obamacare, said he’s been asked by insurance executives to speak out because they feel defenseless against an administration that is regulating their business — and a big customer.

…Laszewski said insurance company officials are embarrassed that they have to cancel plans and force people into more robust, and possibly more expensive, coverage.

Keep your plan? Maybe not

Insurers, he said, warned the White House that the regulations would lead to discontinued policies.

“One of the things I think is clear here is the Obama administration has no trust in anything the health insurance industry is telling them about how to run a health plan,” Laszewski said.

The only way ObamaCare could possibly be fixed would be with ideas from the people who understand how health insurance works. That would be the insurance companies that are currently being gagged and shut out of the process. This is the equivalent of allowing someone with a Liberal Arts degree to design an atomic bomb. The person being asked to perform the task is intelligent, but you are asking them to do something outside the area of their expertise. The ObamaCare plan is an example of what happens when you ask people with no experience in an industry to take over that industry. We need to get the government out of healthcare and move it to the private sector. It would be a good idea to introduce tax credits to allow poor people to buy insurance coverage, to allow insurance policies to be sold across state lines, and to institute tort reform, but other than that, the government needs to get out of the healthcare business.

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It Depends On How You Spin It

Today’s Washington Examiner posted an article with a great quote.

The article reports:

Insurance companies aren’t sending out cancellation letters, they’re helping people “transition” into Obamacare, according to a top Democrat.

“If [the companies] changed [the insurance plans] then they have to notify the people who have to have the opportunity to have another policy,” said House Ways and Means Committee ranking member Sander Levin, D-Mich.

So getting cut from your healthcare insurance policy means that you are being given the opportunity to ‘transition’ to another policy. The other talking point is that the policies that are being cancelled are being cancelled so that they can be replaced with better policies. Somehow that fact that these ‘better’ policies include maternity care for men and senior citizens and are thus more expensive is not mentioned. ObamaCare is one giant fiasco, and all of us need to work to make it go away.

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How Much Does It Cost?

ObamaCare was supposed to allow everyone in America to get health insurance, and it was supposed to lower the cost of health insurance for everyone. So far that is not the case.

Yesterday RedState posted an article about the cost of insuring a family under ObamaCare. It’s not a pretty picture.

The article tells the story of one man’s search for healthcare on the website for ObamaCare:

First, I decided to look at the low-tier, catastrophic coverage, under ObamaCare.  This should typically be the cheapest plan per month.  Yet one option would have cost my family over $50,000 a year in premiums.

My first thought was maybe this was just a mistake, another technical “glitch” in the website.  So I kept looking.

Here are a few more of the plans I found, costing as much a $4,910 a MONTH in premiums.  That’s nearly $58,920 a year for a family of five.

When I looked at the chart, I thought it showed yearly premiums, in which case the numbers would be reasonable. However, the chart below shows MONTHLY insurance premiums for basic policies under ObamaCare.

Heathcare.gov

I’m hoping we can end ObamaCare before it bankrupts America and the American people. The best way to do that is to elect people who oppose it in the next election cycle. If we continue to elect people who support ObamaCare, we will be stuck with it.

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Losing Your Health Insurance Because Of ObamaCare

One of the unintended consequences of ObamaCare has been the changing of the American workforce from a full-time workforce to a part-time workforce. As companies attempt to cut expenses and avoid the extra expense of the policy requirements of ObamaCare, they are cutting the number of full-time employees. The problem is that the ObamaCare policies require coverage that many people do not want or need and have not previously paid for. I can assure you that as a senior citizen I don’t need pregnancy coverage on my health insurance.

Well, there is also another problem. Ed Morrissey at Hot Air reported today that Darden Restaurants will have to cancel the healthcare coverage they have previously offered to their part-time employees due to the requirements of ObamaCare.

The article reports:

Darden will no longer offer part-timers limited-benefit insurance because Obamacare forbids it. Darden said it will offer other programs to part-timers such as a bundle of discounts on prescriptions, and cash payments for services such as doctor’s visits.

They might pay less for premiums, but they’re going to pay more overall.  That’s because the so-called bronze plans that cost the least still are more expensive for most applicants even with the scalable subsidies, and also because deductibles will likely be much higher than Darden employees had under their employer plan. That means that those consumers will have to spend thousands of more dollars than they did in previous years before their insurance benefits kick in at all.  For those working part-time, that will take a particularly vicious bite out of their disposable income.

Unfortunately, the government will run health insurance about as efficiently as state governments run their motor vehicle agencies. Prepare for long lines and incredible red tape.

 

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Did You Know About The Belly Button Tax?

Yesterday the Wall Street Journal posted an article about the debate over the Belly-Button Tax in Obamacare. Yes, you read that right. There is a tax on every person covered by an insurance plan–policy holder, spouses, and children. This has become known as the belly-button tax.

The article reports:

It’s paid by every company that provides insurance — big businesses, organized labor, and insurance carriers. The likely beneficiaries of the compensation fund, though, are just the traditional insurance carriers, who will become required to sell coverage to everyone, regardless of their medical history.

Large employers and unions have fought hard to get an exemption, saying the levy is unfair because they don’t directly benefit from the fund. Insurers say it’s an important fee they need to keep.

If you are going to require insurance companies to insure everyone regardless of pre-existing conditions, you need to find a way to keep them from going bankrupt. We need to remember that companies are in businesses to make money. If they are not able to make money, why should they stay in business? The International Economic Development website reports that the profit margins for health insurance companies is about 3 percent. They rank about 88 among 215 industries as far as profit margins go. That profit margin is not overly large–these companies don’t have a lot of wiggle room to accommodate the federal government seriously impacting their profits. I don’t support ObamaCare, but if you are going to have ObamaCare, you need a belly-button tax.

ObamaCare does not make sense economically or otherwise. It will eventually collapse under its own weight. We just need to make sure it collapses before it totally destroys healthcare in America.

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Lying As A Way Of Life

If you heard someone you knew tell this story, you would immediately feel sympathy:

“I’ve had a situation in my family — a child — who had serious physical problems, who could not have qualified but for group health insurance available to me as a member of Congress,” Durbin (Senator Dick Durbin) said in response to a pointed question to Republican Sen. Ted Cruz of Texas.

“If I had gone on the open market to buy a policy I’m not sure I could have bought one for my family to cover my child,” said Durbin, who was first elected to Congress in 1982 when his Christine was fourteen.

When you hear that story, you immediately think how horrible it would be to have a child who needed medical attention and not be able to provide the necessary care. However, when you look a little bit closer, that is not exactly what the situation was.

The quote above is from a Daily Caller article posted on Tuesday.

The article tells a little more about the story:

…the Illinois Democrat (Senator Dick Durbin) neglected to mention that his late daughter was easily covered by existing insurance, and that he used taxpayer money to reward the hospital that treated her.

Despite her preexisting condition, Christine Durbin, who suffered from a lifelong heart condition and died at age 40 in 2008, was eligible for coverage under existing laws in multiple states, including the senator’s state and the state she ultimately settled in.

Durbin also neglected to mention that he sent his daughter to one of the best children’s hospitals in the country, to which he earmarked millions of dollars from 2002-2010.

…State law also addressed the problem of individuals in the open market suffering from preexisting conditions. In 1987, Illinois passed the Comprehensive Health Insurance Plan (CHIP, which covered any Illinoisan who could not “obtain individual coverage from private insurance companies because of medical conditions.” Thirty-five other states have similar programs, including Maryland, where Christine ultimately settled.

It is entirely possible to address the problem of providing health insurance for people with pre-existing conditions without wrecking health insurance for the rest of us. If the Senator feels that it is necessary to lie to promote ObamaCare, why should we believe anything else he is saying?
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Hard Facts About ObamaCare

On Wednesday, Investor’s Business Daily posted a chart showing states and companies that have cut staffing levels or working hours because of ObamaCare. The chart only includes companies and states where strong proof is provided.

I can’t even post the chart because it is so long. It is sorted by state, and I strongly recommend that you follow the link above to see the chart for yourself.

The article states:

In the interest of an informed debate, we’ve compiled a list of job actions with strong proof that ObamaCare’s employer mandate is behind cuts to work hours or staffing levels. As of Sept. 25, our ObamaCare scorecard included 313 employers. Here’s our latest analysis, focusing on cuts to adjunct hours at nearly 200 college campuses. The ObamaCare list methodology is explained further in our initial coverage; click on the employer names in the list below for links to supporting records, mostly news accounts or official documents.

We’ll continue to update the list, which we encourage you to share and download into a spreadsheet to sort and analyze. If you know of an employer that should be on the list and can provide supporting evidence, please contact IBD at jed.graham@investors.com.

Keep in mind as you look at this chart that it represents real people with families to support, rents to pay, and financial responsibilities. ObamaCare needs to be stopped. I have no idea how that can be done, but it needs to be done. It will destroy the healthcare insurance industry and the American economy.

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More Unintended Consequences Of ObamaCare

I really wish Congress was required to read all the laws it passes before it passes them. That might have avoided some problems, although most of ObamaCare was not yet written when it was passed.

Yesterday the Daily Caller posted an article about the impact ObamaCare will have on competition in the healthcare insurance industry in North Carolina. As it is currently being implemented, ObamaCare will create a healthcare insurance monopoly in North Carolina.

The article reports:

“Although seven insurance companies currently operate in North Carolina, under the new Obamacare exchanges, those options will dwindle down to one in the majority of counties,” Ellmers (Congresswomen Renee Ellmers from North Carolina’s Second District) said Thursday following the disclosure of figures by federal health officials showing that more than 60 percent of North Carolina counties will have only one insurance provider option under Obamacare: Blue Cross Blue Shield.

We know from past experience that monopolies are not a good idea. This is another example of why ObamaCare needs to be stopped in its tracks before it does any more damage.

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Something To Remember The Next Time You Vote

Today’s Washington Examiner posted a story about the affect ObamaCare will have on the cost of health insurance for Americans. The healthcare exchanges under ObamaCare are expected to begin on October 1.

Senator Lamar Alexander released some numbers today showing how ObamaCare will impact the residents of Tennessee.

Senator Alexander’s findings are reported in the article:

— Today, a 27-year-old man in Memphis can buy a plan for as low as $41 a month. On the exchange, the lowest state average is $119 a month — a 190 percent increase.

— Today, a 27-year-old woman in Nashville can also buy a plan for as low as $58 a month. On the exchange, the lowest-priced plan in Nashville is $114 a month — a 97 percent increase. Even with a tax subsidy, that plan is $104 a month, almost twice what she could pay today.

— Today, women in Nashville can choose from 30 insurance plans that cost less than the administration says insurance plans on the exchange will cost, even with the new tax subsidy.

— In Nashville, 105 insurance plans offered today will not be available in the exchange.

Said the Republican senator, “Why should a 27-year-old male in Memphis be forced to pay nearly three times more than what he pays today for health insurance? Why should a young woman in Nashville have to pay twice as much? This isn’t what President Obama promised Tennesseans, but it’s what he’s giving them — higher costs and less choice — that are two of the most urgent reasons Obamacare must be repealed and our health care system fixed.”

There are some states where the cost of insurance will be lower than earlier projections–note that the cost is not lower than current premiums, but lower than earlier projections.

ObamaCare is not ready for prime time. It needs to be delayed, amended, and moved toward a free-market plan. As it is currently formulated, it will fail.

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Why Ted Cruz Was Right

As the ObamaCare debate continues, today’s Washington Times had a very interesting piece of information about Congress and healthcare. The article reports that an internal Senate email warns Senators not to sign up for ObamaCare immediately because the health exchanges have not been completely set up yet.

The article quotes the email:

“Members and staff are advised that they should delay enrolling in health insurance plans until we are able to offer further guidance as to how they should enroll in these insurance plans for 2014,” the Senate disbursing office said in an email to staffers Monday. “Premature enrollment could adversely impact eligibility for the employer premium contribution.”

What about the rest of us–we are all supposed to be participating by next Tuesday?

The article further reports:

During the 2009 health care debate Congress approved language insisting that lawmakers and staffers in their personal offices will lose their federal health plans and must shop for plans on the exchanges — though last month’s ruling by the Office of Personnel Management said taxpayers will still continue to pay 72 percent of the premiums.

Republicans said that’s a benefit most Americans won’t get.

Congress is not supposed to be a protected class–they should be forced to live under the same law that the rest of us are required to follow.

This is just another reason ObamaCare should be stopped in its tracks before it totally destroys healthcare in America.

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Unintended Consequences Of A Bad Law

Investors.com posted an article today about one of the unintended consequences of ObamaCare. The law as it was explained by the Obama Administration states that if a person’s income is less than 400% above the poverty line, they are supposed to get a subsidy for their health insurance. However, there is a glitch in this law that denies that subsidy to most childless single people between the ages of 18 and 34. Unfortunately, this is the group that needs to participate in ObamaCare in order for ObamaCare to work.

The article explains the problem:

The reason for the disparity in subsidies stems from the formula ObamaCare uses to calculate the subsidy amounts. Under the law, people making less than 400% of poverty will only be required to pay a certain percentage of their income toward insurance coverage. Anything above that amount will be paid by taxpayers.

So, for example, someone making $34,470 — or 300% of poverty — would have to pay $3,275 in premiums before ObamaCare subsidies kick in.

But because most young people in this income group will be able to buy insurance in the ObamaCare exchanges for less than $3,275, they won’t get any subsidy help. That was the case in the 14 states that, along with Washington, D.C., had announced their ObamaCare rates when the study was conducted.

The article further reports:

“On balance, insurance in the exchanges will be a much better deal for older and sicker people,” said Sean Parnell, president of Impact Policy Management, who co-authored the study with Hogberg.

And that, the authors note, could lead to an insurance “death spiral,” if the young avoid paying full price for coverage while older, sicker people take advantage of the generous ObamaCare subsidies.

Further evidence that ObamaCare is not yet ready for prime time.

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Who Loses Under ObamaCare?

Investor’s Business Daily posted an article yesterday about five groups of people who are at risk of losing their healthcare coverage under ObamaCare.

The article quotes one of the President’s promises regarding ObamaCare–a promise which is rapidly becoming obviously untrue:

“We will keep this promise to the American people. If you like your health care plan, you can keep your health care plan. Period. No one will take it away.”

The article lists the five groups of people who may lose their healthcare coverage–spouses, part-time workers, retirees form the private sector, retirees from the public sector, and people who buy their health insurance individually.

United Parcel Service (UPS) has already announced that it will no longer provide health insurance for spouses of employees. The University of Virginia has announced that it will no longer provide insurance for employee spouses who can get insurance from their own jobs.

In 2014 grocery chain Wegmans will be dropping healthcare coverage for part-time workers. Other businesses are increasing the number of part-time employees in order to avoid the healthcare mandate that requires them to provide insurance for full-time employees.

ObamaCare is a really bad law. It needs to be stopped in its tracks. I don’t know exactly what that will look like, but it needs to be done.

 

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A Press Conference To Remember

This is part of the transcript of today’s Presidential Press Conference posted at the Washington Post today:

With respect to health care, I didn’t simply choose to delay this on my own. This was in consultation with businesses all across the country, many of whom are supportive of the Affordable Care Act, but — and who — many of whom, by the way, are already providing health insurance to their employees but were concerned about the operational details of changing their HR operations if they’ve got a lot of employees, which could be costly for them, and them suggesting that there may be easier ways to do this.

Now what’s true, Ed, is that in a normal political environment, it would have been easier for me to simply call up the speaker and say, you know what? This is a tweak that doesn’t go to the essence of the law. It has to do with, for example, are we able to simplify the attestation of employers as to whether they’re already providing health insurance or not. It looks like there may be some better ways to do this. Let’s make a technical change of the law.

That would be the normal thing that I would prefer to do, but we’re not in a normal atmosphere around here when it comes to, quote- unquote, “Obamacare.”

We did have the executive authority to do so, and we did so. But this doesn’t go to the core of implementation.

Let me tell you what is the core of implementation that’s already taken place. As we speak, right now, for the 85 percent of Americans who already have health insurance, they are benefiting from being able to keep their kid on their — on their plan if their kid is 26 or younger. That’s benefiting millions of young people around the country, which is why lack of insurance among young people has actually gone down. That’s in large part attributable to the steps that we’ve taken. You’ve got millions of people who’ve received rebates because part of the Affordable Care Act was to say that if an insurance company isn’t spending 80 percent of your premium on your health care, you get some money back. And lo and behold, people have been getting their money back. It means that folks who’ve been bumping up with lifetime limits on their insurance that leaves them vulnerable — that doesn’t exist. Seniors have been getting discounts on their prescription drugs. That’s happening right now. Free preventive care, mammograms, contraception — that’s happening right now.

I met a young man today on a bill signing I was doing with the student loan bill who came up to me and said, thank you — he was — he couldn’t have been more than 25, 26 years old — thank you; I have cancer; thanks to the Affordable Care Act, working with the California program, I was able to get health care, and I’m now in remission. And so right now people are already benefiting.

Now, what happens on October 1st, in 53 days, is for the remaining 15 percent of the population that doesn’t have health insurance, they’re going to be able to go on a website or call up a call center and sign up for affordable, quality health insurance at a significantly cheaper rate than what they can get right now on the individual market.

And if, even with lower premiums, they still can’t afford it, we’re going to be able to provide them with a tax credit to help them buy it. And between October 1st, end of March, there will be an open enrollment period in which millions of Americans for the first time are going to be able to get affordable health care.

Now, I think the really interesting question is why it is that my friends in the other party have made the idea of preventing these people from getting health care their holy grail. Their number-one priority. The one unifying principle in the Republican Party at the moment is making sure that 30 million people don’t have health care; and presumably, repealing all those benefits I just mentioned — kids staying on their parents’ plan, seniors getting discounts on their prescription drugs, I guess a return to lifetime limits on insurance, people with pre-existing conditions continuing to be blocked from being able to get health insurance.

That’s hard to understand as a — an agenda that is going to strengthen our middle class. At least they used to say, well, we’re going to replace it with something better. There’s not even a pretense now that they’re going to replace it with something better.

This is such total garbage I don’t know where to start. ObamaCare is not going to strengthen the Middle Class in America. It may well destroy it. Employers are increasing the number of part-time employees in order to avoid the mandate that says they must provide insurance for full-time employees.

On July 1, Forbes Magazine reported:

Three months from today—October 1, 2013—is X-Day, the day that Obamacare’s subsidized health insurance exchanges are supposed to become fully operational. And today brings more news of “rate shock,” the phemonenon by which Obamacare dramatically increases the underlying cost of health insurance for people who buy it on their own. Louise Radnofsky of the Wall Street Journal looked at insurance rates in eight states, and found that while some sicker people will get a better deal, “healthy consumers could see insurance rates double or even triple when they look for individual coverage.”

The President neglected to mention that one way that the government is attempting to save money on healthcare is to decrease the amount of money it pays to hospitals and doctors for providing care. The result of that is that some doctors and hospitals will stop taking Medicare patients and other patients covered by government health care. Every American may have a card saying that they have health insurance, but they will have a hard time finding a medical facility that will accept that card.

The President is lying to us. ObamaCare is a bad deal for all Americans. As all of us begin the experience its ‘benefits,’ I hope we will remember to vote out every member of Congress who voted for it. We also need to remember that, thanks to the President, Congress is exempt from ObamaCare. That should tell us all we need to know.

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Insurance Companies Are Businesses–They Have The Right To Make Money

One of the things that seems to be missing in the comments by the few politicians who actually support ObamaCare is the understanding that insurance companies are businesses–their goal is to make a profit. If the rules of the game are such that the insurance companies cannot make a profit, they can easily choose not to participate in the marketplace involved. We are now seeing that dynamic in ObamaCare.

CNS News reported yesterday that Blue Cross, Aetna, United, and Humana, the major health insurance companies, will not be participating in the health-insurance exchanges in various states.

Aetna, an insurance company founded in Connecticut, has pulled out of the exchanges in Connecticut, Georgia and Maryland, saying that the limitations that would be imposed on them by those states would not allow them to make a profit. The company never planned to participate in the California exchanges, and will not be doing so. They are, after all, a private company in business to make a profit.

Senator Max Baucus recently stated about ObamaCare, “I just tell ya, I just see a huge train wreck coming down.” He is one of the Senators who supported ObamaCare when it was passed. I think he is right.

 

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They voted for it. They found out what is in it. Now let’s make it go away.

Even the media outlets that usually love President Obama are choking on ObamaCare. The Associated Press posted an article today noting President Obama’s spin on the ObamaCare rebates.

The article reports:

In his speech defending his health care law Thursday, Obama said rebates averaging $100 are coming from insurance companies to 8.5 million Americans. In fact, most of the money is going straight to employers who provide health insurance, not to their workers, who benefit indirectly.

Obama danced around that reality in remarks that also blamed problems in establishing affordable insurance markets on political opponents, glossing over complex obstacles also faced in states that support the law.

In his speech, the President introduced several people who got rebates from their health insurance premiums last year, but there were a few things he neglected to mention. Generally speaking, the rebates are sent to the companies who provide the insurance for their employees–those companies have no obligation to pass those rebates on to their employees.

There is also another really dangerous aspect of these rebates. President Obama stated, ” If they’re (insurers) not spending your premium dollars on your health care – at least 80 percent of it – they’ve got to give you some money back.” Since when does the government have the right to tell any company selling a product how to spend the money it receives for that product?

The article also reports:

In California, for example, where there is plenty of competition by health insurers wanting to get into the exchange, an actuarial report commissioned by Covered California, the state agency running the insurance marketplace, found that middle-income residents could see individual health premiums increase by an average of 30 percent while costs go down for lower income people.

In West Virginia, Democratic Gov. Earl Ray Tomblin – also a cooperative partner in expanding Medicaid and setting up an exchange – complained to federal officials this week about delays in rules and guidelines from Washington as the state struggles to meet deadlines under the law.

ObamaCare needs to go away. We need enough men in Congress who love this country more than they love their political parties to make that happen. If we don’t have those men in Congress now, we need to elect them in 2014. ObamaCare needs to go away.

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Is The Government Really That Naive?

Yesterday National Review posted an article about one aspect of the delay in putting the employer mandate in place that has not received a lot of attention. Since the paperwork involved in the employer mandate was to be used in determining the eligibility for government subsidies to employees in ObamaCare, there is now no way of confirming a person’s eligibility.

The article reports:

Many if not all of the state exchanges, and presumably also the federally-run exchanges, were planning to use the required employer reports to facilitate the eligibility reconciliation that you have to do at tax filing time when people receive advanceable tax credits like those set to be offered in the exchanges. If employers weren’t required to provide reports for 2014, the process of confirming eligibility (that is, confirming that people receiving subsidies had in fact not been offered affordable insurance coverage at work) would become more difficult to pull off, since it’s not really clear what other data sources the exchanges would have, and the exchange subsidy system would therefore become that much more difficult to manage.

The article explains the government’s solution to the lack of confirmation which will result from the delay in the employer mandate:

In 2014, applicants can more or less be deemed eligible for subsidies in the state-run exchanges if they say they are eligible. If it has no external sources of information regarding what insurance employers offer, the rule states, “the exchange may accept the applicant’s attestation regarding enrollment in an eligible employer-sponsored plan and eligibility for qualifying coverage in an employer-sponsored plan for the benefit year for which coverage is requested without further verification.” In fact, the exchanges are not only released from the obligation to verify whether applicants are eligible for employer coverage, they are also released from the obligation to confirm applicants’ statements regarding their household incomes before providing them with what is supposed to be an income-based benefit.

So is this actually about? In order to work at all, ObamaCare needs Americans to enroll in their state’s healthcare exchanges–this is the government-run healthcare program. If the penalties for employers for not providing health insurance are dropped, theoretically employers will begin to drop health insurance as a benefit. This forces people to seek health insurance elsewhere (as the personal mandate to carry health insurance is still in place). If the exchanges are set up with built-in subsidies based on income and you don’t have to verify your income, getting your health insurance through the exchanges while claiming an income within the range of subsidies is like free money.

It is my hope that Americans would not lie about their income in order to save money, but that is a hope–I’m not that naive. However, the government is.

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The Law Of Unintended Consequences Strikes Again

The Wall Street Journal posted an editorial today entitled, “ObamaCare and the ’29ers.'” When I first looked at the title, I thought it was about the unemployment rate of the twenty-something generation. It’s not. It’s about how ObamaCare is affecting the number of hours employers allow their employees to work.

The article reports:

The law (ObamaCare) requires firms with 50 or more “full-time equivalent workers” to offer health plans to employees who work more than 30 hours a week. (The law says “equivalent” because two 15 hour a week workers equal one full-time worker.) Employers that pass the 50-employee threshold and don’t offer insurance face a $2,000 penalty for each uncovered worker beyond 30 employees. So by hiring the 50th worker, the firm pays a penalty on the previous 20 as well.

Is Washington capable of making anything simple?

The article explains how the mathematics of employing people under ObamaCare work:

The savings from restricting hours worked can be enormous. If a company with 50 employees hires a new worker for $12 an hour for 29 hours a week, there is no health insurance requirement. But suppose that worker moves to 30 hours a week. This triggers the $2,000 federal penalty. So to get 50 more hours of work a year from that employee, the extra cost to the employer rises to about $52 an hour—the $12 salary and the ObamaCare tax of what works out to be $40 an hour.

This chart from the article shows the number of people currently working part-time:

image

It’s time to repeal ObamaCare, replace it with something that has actually been thought through, and get the American economy working again.

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Facing Reality

As the Obama Administration pushed for national health care (the Patient Protection and Affordable Care Act as it was officially known), one of their justifications for the government takeover of healthcare was the need to make sure people with pre-existing medical conditions could get health insurance and healthcare. Well, Obamacare was passed, but it may not actually work as planned–there may have been a reason insurance companies were reluctant to take on these clients.

The Associated Press is reporting today:

Citing financial concerns, the Obama administration has begun quietly winding down one of the earliest programs created by the president’s health care overhaul, a plan that helps people with medical problems who can’t get private insurance.

In an afternoon teleconference with state counterparts, administration officials said Friday the Pre-Existing Condition Insurance Plan will stop taking new applications. People already in the plan will not lose coverage.

Why do you think these people can’t get private insurance? The insurance companies are in business to make a profit. There is nothing wrong with that–why stay in business if you are not going to make a profit? Now the government is discovering that the insurance companies actually knew what they were doing. Wow.

The article points out that enrollment in the program has been lower than expected because many people could not afford to pay the necessary premiums. Individual cases have turned out to be more expensive than originally thought.

The insurance companies would have told the Obama Administration all of this had they been asked or had the Obama Administration been willing to listen. We just spent a lot of taxpayer money reinventing the wheel when we could have simply improved the design while relying on the knowledge of those who had walked the road before. This is another example of why it is a bad idea to give the government money–they waste it.

I would have been open to the idea of the Obama Administration setting up health insurance pools similar to the high risk driver pools car insurance companies use. A program could be set up where people in that pool get help with their insurance premiums. That could have been done without ruining health insurance for those of us who were happy with the status quo.  Hopefully, if Obamacare is ever replaced, ideas similar to providing help for high risk people will be considered as one way to make sure everyone has access to health insurance. As it stands now, the part of Obamacare that actually solves an existing problem is being taken away.

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What Americans Will Really Pay For Obamacare

This article is based on three stories–one at Hot Air posted yesterday, one at the Wall Street Journal posted Thursday, and one posted at CNS News on Thursday. The bottom line on the Hot Air and CNS News stories is that the cheapest health care plan for a family under Obamacare will cost $20,000 per year. The bottom line on the Wall Street Journal story is that everything we were told about Obamacare by President Obama has turned out to be not true.

The Wall Street Journal article lists four major promises that have been broken in Obamacare:

1. Lower health-care costs

2. Smaller deficits

3. Preservation of existing insurance

4. Increased productivity

Please follow the link to the Wall Street Journal article to see the details of each broken promise.

The Obamacare insurance has different levels of plans. CNS News reports on the bronze plan–the lowest level. The article reports:

The examples point to families of four and families of five, both of which the IRS expects in its assumptions to pay a minimum of $20,000 per year for a bronze plan.

“The annual national average bronze plan premium for a family of 5 (2 adults, 3 children) is $20,000,” the regulation says.

Bronze will be the lowest tier health-insurance plan available under Obamacare–after Silver, Gold, and Platinum. Under the law, the penalty for not buying health insurance is supposed to be capped at either the annual average Bronze premium, 2.5 percent of taxable income, or $2,085.00 per family in 2016.

The article at Hot Air points out:

Using the conditions laid out in the regulations, the IRS calculates that a family earning $120,000 per year that did not buy insurance would need to pay a “penalty” (a word the IRS still uses despite the Supreme Court ruling that it is in fact a “tax”) of $2,400 in 2016.

The best that we can hope for is that Obamacare will collapse under its own weight and we can find a better way to help everyone get health insurance.

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Why Repealing ObamaCare Is Still A Good Idea

As we approach the fiscal cliff and some of us realize that no matter what happens taxes on all Americans will be going up, we are forgetting what Obamacare is going to do to our taxes. Before I go into the details, I would like to remind everyone that the Medieval surfs only paid 10 percent of their crops to the lord of the manor. They were allowed to keep more of the fruit of their labor than Americans are currently keeping.

The Daily Caller posted an article yesterday listing some of the new taxes that will be imposed by Obamacare. The new ‘taxes on the rich’ are expected to average approximately $700 billion over 10 years.

The article lists some of these new taxes. Here are a few:

Upper-income households. Starting Jan. 1, individuals making more than $200,000 per year, and couples making more than $250,000 will face a 0.9 percent Medicare tax increase on wages above those threshold amounts. They’ll also face an additional 3.8 percent tax on investment income. Together these are the biggest tax increase in the health care law.

Employer penalties. Starting in 2014, companies with 50 or more employees that do not offer coverage will face penalties if at least one of their employees receives government-subsidized coverage. The penalty is $2,000 per employee, but a company’s first 30 workers don’t count toward the total.

Health care industries. Insurers, drug companies and medical device manufacturers face new fees and taxes. Companies that make medical equipment sold chiefly through doctors and hospitals, such as pacemakers, artificial hips and coronary stents, will pay a 2.3 percent excise tax on their sales, expected to total $1.7 billion in its first year, 2013. They’re trying to get it repealed.

The insurance industry faces an annual fee that starts at $8 billion in its first year, 2014.

The article also lists pharmaceutical companies, which are already paying fees; people who don’t have insurance, who will be fined; and people who use tanning salons. It is no wonder that the only gains in employment that have resulted from Obamacare are in the Internal Revenue Service.

The prospect of a fiscal cliff is looming right now. The prospect of a serious recession brought on by the taxes of Obamacare is also looming, but has somehow been lost in the shuffle. If America is to survive economically, we need a Congress who will deal with both in a way that is good for the country–not simply good for their re-election campaigns.

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Another Side Effect Of ObamaCare

Real Clear Politics posted an article today about the impact of ObamaCare on the full-time job market.

The article reports:

Just recently, the Internal Revenue Service issued an 18-page, single-spaced notice explaining how to distinguish between full-time and part-time workers under the Affordable Care Act (“Obamacare”). The difference matters, because the ACA requires employers with 50 or more full-time workers to provide health insurance for those workers. At the same time, no company has to buy insurance for part-time employees, defined as those working less than 30 hours a week.

I’ll go into the details of what that means in a minutes, but stop a minute and look at what just happened. A new law about healthcare is causing the Internal Revenue Service to issue a notice explaining full-time and part-time employment. I thought ObamaCare was about healthcare.

The part of ObamaCare that this IRS notice relates to will not kick in until after the election (surprised?).

The article reports on the impact:

Employers have a huge incentive to hold workers under the 30-hour weekly threshold. The requirement to provide insurance above that acts as a steep employment tax. Companies will try to minimize the tax. The most vulnerable workers are the poorest and least skilled who can be most easily replaced and for whom insurance costs loom largest. Indeed, the adjustment has already started.

Please follow the link to the Real Clear Politics article to read the details. This is a law that needs to be repealed.

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The Cost Of ObamaCare

Yesterday the Washington Examiner posted an editorial explaining the impact Obamacare will have on jobs.

The article reports:

And so in order to avoid paying fines or buying massively more expensive health plans that are Obamacare-compliant, Darden is now experimenting with limiting its employees’ hours instead. By keeping workers to fewer than 30 hours per week, Darden can categorize them as “part-time.” Thus, the company avoids the Obamacare fines and leaves employees to the new government health insurance exchanges, where they may receive subsidies to purchase insurance. At least two other restaurant chains — White Castle and McDonald’s — are considering similar plans.

Thus, Obamacare is resulting in people working fewer hours, less tax revenue for the government, and bigger government.

The article concludes:

So to sum up, Obamacare is leading to fewer hours worked, less tax revenue for the government and bigger government subsidies for health insurance for people who were already insured in the first place. If enough companies do this, Obamacare will become a massive dead weight on the federal budget, even as it does little more than shuffle people from one insurance plan to another, whether they like it or not. The Congressional Budget Office estimates, at the high end, that 20 million workers could see their health plans dropped thanks to Obamacare.

One person who commented on the article at the Washington Examiner stated:

In 2009, Barack Obama stood up before the nation, and boasted that, if Obamacare was passed, you could keep your original health care plane.   That clearly was an out and out lie.

The more we see of Obamacare, the worse it gets. It needs to be repealed and replaced as soon as possible. The replacement needs to balance the needs of the health insurance consumer with the needs of the health insurance companies. There is nothing wrong with health insurance companies making a profit–that is why they are in business. The challenge is to make sure that they also meet the needs of the consumer.

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Who Makes Money In ObamaCare ?

The following charts are from Forbes.com:

What the chart shows is the profits the American Association of Retired Persons (AARP) will make as the result of the passage of ObamaCare. One of the aspects of ObamaCare is the end of the Medicare Advantage program–the favorite program of senior citizens.

The article at Forbes reports:

Not only did AARP succeed in getting Democrats to balk at Medigap reform. Obamacare’s cuts to Medicare Advantage will drive many seniors out of that program, and into traditional government-run Medicare, which will increase the number of people who need Medigap insurance.

It gets worse. AARP Medigap plans are exempted from most of Obamacare’s best-known insurance mandates. AARP Medigap plans are exempted from the ban that requires insurers to take all comers, regardless of pre-existing conditions. The plans are exempted from the $500,000 cap on insurance industry executive compensation; top AARP executives currently make more than $1 million. AARP plans are exempt from the premium tax levied on other private insurers. IPAB, Medicare’s rationing board, is explicitly barred from altering Medicare’s cost-sharing provisions, provisions that govern the existence of Medigap plans.

And AARP Medigap plans are allowed to have twice the administrative costs that other private insurers are allowed under Obamacare’s medical loss ratio regulations. This last point is key, because AARP’s 4.95 percent royalty is a significant administrative cost.

One of the most corrupt administrations in American history has ruined American healthcare. Unless we vote President Obama out of office and repeal ObamaCare, the crony capitalism engaged in by this administration will haunt us for years.

 

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