I remember well the liberal Democrat echo chamber calling G W Bush “incompetent”. It was their mantra. Their rehearsed talking point. And the went on the weekend shows and in front of every camera they could find to repeat it. Over and over and over.
If Bush was incompetent, what in the world does that make Obama? This inept and incompetent White House just outed their own CIA station chief in Afghanistan in a picture of the Obama trip there over the Memorial Day weekend. A trip clearly designed to distract from the growing VA scandal goes south in a heartbeat because of … gross incompetence.
Anyone remember Valerie Plame? That pales in comparison to this idiocy. Pales? It doesn’t even get on the radar screen in comparision.
And don’t get me started about the VA.
But speaking of VA, it does indeed again make the point that the government – and especially under this particular administration – can’t run health care … period. And no, I’m not saying a more competent administration could. The VA has been plagued by problems for decades. The fact that they’ve gotten worse under this President doesn’t at all surprise me. But what may surprise you is this:
Since 9/11, the VA budget has increased by 235%, from FY2001′s $45 billion annual budget to FY2014′s $150.7 billion. On a percentage basis, the only Cabinet agencies that had larger budget increases over that arc have been State (271%) and Homeland Security (245%), the latter of which barely existed at the start of that period. In the Bush era, comparing the final budget with his signature (FY08) to the final Clinton budget (FY01), VA spending rose 88.3% to $84.7 billion. Defense spending rose 104% in the same period.
Barack Obama ran in 2007-8 on failures at the VA, promising more resources and better management. In comparison to that final Bush budget — don’t forget that Obama signed the FY2009 budget in March 2009 with the omnibus spending bill after a Democrat-controlled Congress refused to deal with Bush — VA spending has risen dramatically as well. The annual budget rose 78% in six budget cycles, with double-digit increases in four of the six years — while Defense spending was flat. No other Cabinet agency had a larger budget increase by percentage during Obama’s tenure. The closest was Agriculture (64%), followed by State (59%, which tends to discredit the canard about the Benghazi failure being caused by a lack of resources). Only HHS had a larger annual budget increase in terms of dollars spent, but it amounts to a 37% increase in spending from the FY2008 baseline. The amount of increase in the VA’s budget in the Obama era, $65.9 billion, exceeds the entire VA budget in the FY2004 budget.
So it wasn’t money. As usual it was leadership. How many freakin’ times do we have to hear this incompetent who is President say he learned about the latest scandal from television news? For 6 years it has been all his and he has no idea what is going on in his own executive departments. For that matter, neither do his secretaries. The Health and Human Services absolutely blew the launch of the health care website. Something that is done successfully everyday in the commercial world. And where did Mr. Obama learn about it? TV. He certainly had no idea that it was a bust before then.
Why? Because he didn’t bother to check. Didn’t bother to ask hard questions or require a demonstration. He didn’t lead. He had already waved his magic hand and told them to get it done. Words equal action in his world.
Same with the VA. After lambasting the former administration for its failures in reference to the VA, he, in 6 years and billions of dollars, hasn’t improved it on iota. And more grating than anything is he didn’t care enough to check. He didn’t KNOW! His secretary didn’t know! An pattern of failure repeated in this administration since the beginning. Instead the usual liberal panacea was applied: throw money at it and the problems will go away. Just check out public education to see how well that’s worked – or the “War on Poverty”, etc.
Nope, this was a culture problem and a leadship problem. The culture still survives and thrives and the leaders are nowhere to be found. Oh the guys who are supposed to be in charge are still kicking, but they’re sitting in front of their television sets to see if there have been any new developments. Meanwhile, this is going on and has been going on:
The VA department has been directly providing health care to millions of veterans for decades and evidence is growing that relying on the system can literally be a fatal decision. The Washington Examiner’s Mark Flatten reported May 12 that a Texas VA clinic implemented a cost-cutting measure in 2010 that required a patient to undergo three positive bloody stool screens before the government would approve a colonoscopy. Dr. Paul Krugman, who protested the policy while serving in the VA facility, told Flatten that “by the time that you do the colonoscopies on these patients, you went from a stage 1 to a stage 4 [colorectal cancer], which is basically inoperable.”
As many as 15,000 vets were subjected to this treatment. There is no way of knowing how many died because they spent their final days at home or in a private facility. Suffering and dying in obscurity due to a cost-cutting measure by a government-run health care system is the ultimate SNAFU, and nobody can guarantee it won’t be an commonplace under Obamacare.
Hell of a way to treat our veterans, isn’t it – but then when its all about bureaucrats and budgets, the focus isn’t on patients is it? That’s government run health care in a nutshell.
Silver lining? The VA, with a population of 9 million to serve, can’t get the job done competently and has, for the most part never been able to do so. THAT is the story of government run health care. And all you need to cement that fact firmly in your head is to read the open letter one of our veteran triple-amputees penned this past week:
I remember candidate Obama promising to overhaul the VA and reduce the backlog. You claimed that America’s support for its veterans is obvious by the way we treat our vets. You really nailed that one didn’t you?
Just like you were going to fix Detroit or fix foreign policy. Your high school like approach to solving complex issues can’t be fixed by tweeting hashtags with propaganda to people who want to kill us. Anyone with an ounce of common sense can see you’re unfit to lead our nation, let alone act as our Commander In Chief. What our country needs now, more than ever is real leadership, someone who doesn’t wait for a crisis, but is able to foresee an issue and deal with it before it happens. Unfortunately for America, you’ve been too busy campaigning and don’t have time to deal with the health care crisis of our veterans. The only thing you seem to care about is your own radical agenda, and now our vets are paying for your negligence with their lives.
As I sit here typing this out I’m dealing with my own VA nightmare which involves the Phoenix VA. I have given 3 limbs for this country, but apparently that is not enough. A “clerical error” made by a VA employee has resulted in nearly a year of abuse and mismanagement of my case. In other words, the VA is stealing over $7000 from my disability compensation that I earned when I lost 3 of my limbs for our country.
On this Memorial Day, as I battle your incompetent bureaucrats my family would like to thank you for once again failing our veterans. We can’t help but wonder about the disastrous socialized medicine program that we will surely be dealing with if Obamacare is allowed to be fully implemented. If our incompetent VA cannot handle government healthcare for a fraction of our population, who would be foolish enough to believe a massive health care system designed to provide health care for all American’s would be any different? You can’t even find someone to build a competent website to work for your socialized medicine program when you had your name attached to it, so why would you care about our veterans when you could so easily push the blame off on someone else?
The Department of Veterans Affairs says it will let more veterans obtain health care at private hospitals, VA Secretary Eric Shinseki announced Saturday.
That’s right … just like Canada used US private hospitals to bail its government run system out when it came to wait times, the VA is planning the same thing. To anyone with an IQ above a donkey, that ought to tell you something.
Or so says a new McKinsey survey of the numbers:
One of the principal flaws in the coverage of Obamacare’s exchange enrollment numbers to date has been that the press has not made distinctions between those who have “signed up” for Obamacare-based plans, and those who have actually paid for those plans and thereby achieved enrollment in health insurance. A new survey from McKinsey indicates that a large majority of people signing up are now paying for their coverage. This is progress for the health law. But the survey still indicates that three-fourths of enrollees were previously insured.
Of course we’ve seen the propaganda push from the White House that has claimed the numbers (8 million enrolled) mean that the law is working. As usual, the devil is in the details. If the law was designed to provide coverage to those who were uninsured, 25% of the total enrolled fitting that description is hardly indicative of that claim’s efficacy. And when you break down that 25% number, it’s even less indicative:
At most around 930,000 people have gained coverage from Obamacare’s under-26 “slacker mandate” (not 3 million, as is commonly suggested); another 3 million or so have gained coverage from the law’s expansion of Medicaid. Approximately 2.6 million previously uninsured individuals have obtained coverage through the ACA exchanges and the related off-exchange individual markets; however, the off-exchange purchases are mostly unsubsidized, and therefore can’t necessarily be credited to Obamacare.
Here’s a graphic that breaks the McKinsey survey’s results down into a more understandable form:
In reality, what the law has essentially done rearranged the burden of payment among those enrolled while really not doing much at all in terms of reaching those for whom it was supposedly designed to help:
What the exchanges appear to be doing is mainly helping people who were previously insured. If you’re 62 years old, say, and your income is $30,000, and you were paying for your own coverage before, you’re now eligible for plans that are much cheaper for you, thanks to taxpayer-funded subsidies and higher premiums for young people.
Of course that means that other people are paying more. “My old plan was canceled under Obamacare,” an exasperated Californian told me last week. “The new Obamacare plan costs twice as much, and the deductibles are higher. And yet Obama is counting me as one of his 8 million people!” But hey—at least he has maternity coverage.
And I’m sure our Californian is eternally grateful for big brother deciding for him that maternity care was an absolute necessity for which he must pay. But the point is the 8 million number remains very shaky (and that’s being kind) and it really doesn’t at all reflect what the White House would have you believe it reflects – that the law is working.
So a day or so ago, I talk about how regulation and government intrusion is helping to kill entrepreneurship and, as a result, small businesses. The same problem, as we all know, is also exacerbating the unemployment picture. A prime example? That odious law known as ObamaCare.
The US Chamber of Commerce blog has this chart for us to peruse. It is all about the recently implemented “Health Insurance Tax”, aka “HIT”: As this awful law continues to be implemented when it is politically convenient for the Democrats, we see even more disaster lurking for those who are employed and actually “like their insurance and like their doctor”. But HIT is already taking a toll.
The National Federation of Independent Business’ Research Foundation estimates that the Health Insurance Tax (HIT) will result in a reduction in private sector employment of 152,000 to 286,000 jobs by 2023, with 57 percent of the job losses coming from small businesses. This will amount to a reduction of U.S. real output (sales) by between $20 billion to $33 billion during the same time frame.
Just what we need – another “hit” to employment and a “hit” to GDP. But it is clear the Democrats don’t really care about that. As one of our low information commenters is want to say “a few eggs must be broken” to make an omelet … or something. Any inanity will do when it is clear that a law is a bust and a failure. As the Chamber of Commerce blog notes:
The HIT, which went into effect on January 1, 2014, levies a tax on health plans sold on the fully-insured market. Eighty-eight percent of it is made up of small businesses. Revenue from the tax will rise by 41% in 2015 and reach $14.3 billion in 2018.
“Small businesses are crucial to rebuilding an economy that allows all Americans to prosper,” Katie Mahoney, Executive Director of Health Policy at the U.S. Chamber said. “We need to work to find ways to ensure small businesses and their employees have the tools to build on their current success, not hinder future growth.”
You’d think what she says would be fairly common knowledge, but apparently the deluded administration that runs this country thinks we’re coming out of the economic malaise it has worked so hard to keep in place, and thus its time for another little shot to the head of small business.
With the HIT – mission accomplished.
The demographic that was key to holding down health care costs apparently came in well below the level necessary to ensure that:
Just more than a quarter of the eight million people who signed up for health plans under the Affordable Care Act are in the prized demographic of 18 to 34 years old, falling short of the figure considered ideal to keep down policy prices.
The data, released Thursday by the Obama administration, painted a more complete picture of enrollment in the plans. They show that about 28% of people picking plans on the state and federal insurance exchanges by April 19—after most states’ enrollment deadlines passed—were 18 to 34 years old, a generally healthy group. The proportion is higher than previous counts. But it is significantly below the 40% level that some analysts consider important for holding down rates by balancing the greater medical spending generated by older enrollees.
Insurers right now are setting rates for 2015, and the age data will be a key factor in their decisions. Some insurers say that despite seeing a late surge in younger enrollees, their sign-ups still skewed older overall than they had expected.
Because the “healthy” demographic sign-up fell well below expectations, the rates for 2015 are expected to be at a higher rate. And, of course, there’s the further problem that “enrollment” doesn’t necessarily mean that the enrollee has paid for coverage. As noted in earlier:
Data provided to the committee by every insurance provider in the health care law’s Federally Facilitated Marketplace (FFM) shows that, as of April 15, 2014, only 67 percent of individuals and families that had selected a health plan in the federally facilitated marketplace had paid their first month’s premium and therefore completed the enrollment process. Nationwide, only 25 percent of paid enrollees are ages 18 to 34…
And finally, the assumption is that the 18 to 34 demographic will be a “healthy demographic” relatively speaking and will carry the cost for the more sickly among us. That too may be an erroneous assumption:
While the 18-34-year-old cohort has been dubbed the “young and healthy,” a more accurate moniker might be “young and somewhat healthy.” 68 percent of 18-34-year-olds on the federal exchanges chose a silver plan. As I’ve written previously:
Why does this matter for the death spiral? Because so many enrollees choosing silver plans suggests that the risk pool may be sicker than is optimal. For enrollees at or below 250 percent of the federal poverty level, silver plans tend to offer the most coverage for the lowest price. For persons under 250 percent FPL, ObamaCare offers help with copays and deductibles, but only if the consumer chooses a silver plan. The actuarial value for a silver plan is 70 percent (that is, a silver plan must, on average, cover 70 percent of a policyholder’s medical claims), but when the subsidies for cost-sharing are included, the actuarial value rises to between 73 and 94 percent. As one writer notes, “Why would someone opt for a silver-level plan over a cheaper bronze or catastrophic-level plan? The most plausible explanation is that the enrollee anticipates incurring significant medical expenses over the coming year, which is to say that he’s not healthy.”
Since income tends to be lower the younger one is, a lot of those 18-34-year-olds are probably in that <250 percent FPL range. The inordinate number of 18-34-year-olds choosing silver plans suggests that the exchanges have attracted young and healthy people that are not that healthy.
Not only may they not be young and healthy, but they’ll most likely be receiving high subsidies which again sort of defeats the whole purpose of signing up that demographic, doesn’t it? And it certainly calls into further question whether or not even the 28% that signed up will have any significant effect in helping to lower costs.
Bottom line? Well, to quote a well-known conservative talk show host, we’ve again been treated to a heaping helping of “bovine scatology”. Not that anyone at all familiar with this president and his administration should at all be surprised.
And that reality is the American people aren’t buying the propaganda being pushed by the administration. After its celebration of the dubious enrollment of 8 million and unilateral declaration that ObamaCare was a “success”, new poll numbers show no difference among the public’s opinion of the law than before their declaration:
What’s perhaps more telling is that, despite the rare good news of the past few weeks, their perceptions of the law remain basically as-is — that is, pretty dim. To wit:
- Americans say 50-41 that the implementation of the law has been worse than they expected rather than better.
- They say 44-24 that the health-care system is getting worse rather than getting better as a result of Obamacare.
- They say 29-14 that the quality of care is getting worse rather than better.
- They say 47-8 that their health-care costs are increasing due to the law rather than decreasing.
- They say 58-11 that the overall cost of health care in the United States is increasing rather than decreasing.
Almost all of these numbers are basically unchanged from in recent months.
What is it politicians like to tell us about politics? Ah, yes, perception is reality. And as I pointed out when you mess with people’s health care, the reality becomes very personal. It isn’t something that you view from afar and doesn’t effect you. It is something everyone is interested in in some form or fashion.
The numbers above are their perception of that awful law’s impact on their lives. The propaganda simply isn’t going to change that. “8 million enrolled” is something the people really don’t care about. Higher premiums, more red tape and fewer options for health care, not to mention having to give up their doctor and the health insurance they liked is something they care about. That is the result of the law and it is the reason for the numbers.
As we’ve mentioned previously, the numbers you see above are numbers that exist before the most onerous regulations and requirements (now delayed until after the election) are finally put into effect. If you think these numbers are bad, wait till after November.
The bottom line is ObamaCare sucks and the people know it and no administration sponsored dog and pony show is going to change that perception. We see a lot of Democrats now trying to claim that ObamaCare really won’t hurt them in the mid-terms.
I invite them to look at the above numbers, understand that it is they who are going to get “credit” for the law, and rethink their claim prior to their coming unemployment.
That way it won’t come as such a surprise when they’re defeated.
Peter Morici gives a little ground truth to the hyperbole of the left who’ve decided the best defense of ObamaCare is … to lie about it.
With 8 million Americans enrolled in health insurance through federal and state exchanges, President Obama has declared the Affordable Care Act a success. That’s disingenuous and big changes are needed to make the law work well.
Overall, the ACA’s goals were to provide reasonably priced medical care to the 45 to 50 million uninsured and slow health care cost increases. It is hardly clear those goals will be accomplished.
Many of the 8 million enrolled to replace individual and small business policies, canceled thanks to ACA rules, or to obtain federal subsidies only available through the exchanges.
So if the goal was to proved care to the ’45 or 50 million’ uninsured, how does enrolling 8 million, many of whom had lost their insurance due to the ACA, constitute success?
Well in the real world it doesn’t. Only in Oz or Fantasyland do the rules of reality not apply (even if they really do and what those living there do is deny it) and allow them to make these claims with a straight face.
It’s election prep. We’ve seen it countless times before. It is an attempt to make lemonaide out of the lemons this abomination of a law has handed its creators.
This is just another version of the Big Lie that this particular administration has raised to an art form. And with a compliant media to help them along (a media that seems without curiosity at the most important times) the Big Lie gets plenty of press.
Of course now that the press has helped spread the lie, the Dems will point to those media stories as “the truth” and use them to assure the usual left leaning low information voters that a) they need to turn out because ObamaCare is a “good thing” and b) if they don’t those mean old Republicans will take it away.
You can just see it coming.
Meanwhile, for most of America, the really bad stuff is being unilaterally put on hold until after the election – the most blatant display of partisan politics I’ve seen in some time:
The ACA requires health insurance policies to pay for a wider and more expensive scope of services than many individual and small business policies covered prior to the law.
In many counties, only a few insurers chose to offer policies on exchanges. Absent competition, insurers lacked incentives to bargain as hard as before with hospitals and other providers, further raising premiums and out of pocket costs.
The bronze, silver and gold policies offered by exchanges mostly vary in their deductibles. Folks selecting bronze and silver plans with high deductibles are now paying the full cost of doctor visits that only set them back a $20 or $30 dollar co-pay prior to the ACA.
Simply, for many families the ACA raises the combined cost of premium and out-of-pocket expenses.
About 50 percent of Americans are eligible for premium subsidies, but taxpayers are footing the bill and the burden of health care on the economy — already 50 percent higher than in Germany and Japan — is making it tougher for American businesses to compete and destroying jobs — something the Congressional Budget Office doesn’t bother to calculate.
But then, this was all predicted prior to passage and only a few bothered to listen.
Now we get to live with the “success”.
To make it even worse, of those 4%, only 2.1% got them through exchanges:
All of this … mess … for 2.1% (the rest likely got theirs when they found a job)? All of this intrusion and incompetence and frankly, fascism (see IRS involvement in the ‘new’ system) for a percentage that is essentially insignificant. We would have gotten off a lot cheaper and disrupted a few million less lives if we’d have just paid for it (I’m not suggesting we should have, just pointing out how ridiculous the “solution” was/is).
Makes one want to pound their head on something, doesn’t it?
Oh, and probably the most unsurprising thing about the “newly insured?”
All of the newly insured are more likely to identify with or lean toward the Democratic Party than the overall national adult population. Those who signed up through exchanges are the most likely to tilt Democratic and not Republican.
I’m shocked, shocked I tell you …
I’ve been watching the media circus surrounding the resignation of HHS Secretary Kathleen Sebelius. If a more inept bureaucrat ever lived, the best they could do is hope to tie with her for last place. Yet we have so-called “jounalists”, or at least those who would like to be thought of as journalists, so engaged in spin it is almost unseemly. Well it is unseemly. In fact, it’s nauseating.
And who would I designate as “head clown?” None other than Ezra Klein. As James Taranto points out, Klein is shameless in his attempt to paint over the rot that is ObamaCare:
Meanwhile, Ezra Klein hails the success of the Five Year Plan: “Obamacare has won. And that’s why Secretary of Health and Human Services Kathleen Sebelius can resign.” If Sebelius had quit during what Klein calls the “catastrophic launch”–see what we mean?–it would have been a sign of White House “panic” and “made it harder to save the law,” Klein argues.
It’s surely true that the immediate political risk of Sebelius’s resignation is considerably less now than it would have been then. In October it might have emboldened vulnerable Senate Democrats to abandon ObamaCare or at least press for serious legislative fixes. It’s late for that now. By maintaining party unity this long, Obama probably bought enough time to assure that Congress won’t threaten what is invariably called his “signature legislative achievement” this year.
“In other words,” Klein writes, “the law has won its survival.”
Has it? Has it really? There’s nothing to this point that assures the “law has won its survival”, and, as we’ve been warned constantly, the worst is yet to come – that is when the President quits arbitrarily delaying the “worst”.
I mean, Klein’s nonsense is reminiscent of Baghdad Bob’s assurances that the Iraqis were winning, for heaven sake.
We discussed it on the podcast this week and we’ve mentioned it over and over again … we are terribly ill served by our “journalists” and the “news” media in general. Where once upon a time they actually inspected what government did and helped ensure that it didn’t get outside the lines, it now aids and abets it straying beyond those boundries. We now, literally it seems, have a class of “journalists” who think it is their job to hide the truth in order to advance their political agenda.
Ezra Klein is one of those. Anyone who ever takes anything the man says seriously again, is a fool.
Thought you’d like to see this letter to a Congressman from a doctor in Decatur, AL. He outlines the problems that ObamaCare has put on that profession and correctly identifies what is going on as a “war on doctors”. The obvious losers in all of this will eventually be the patients, both current and future as the government further pushes itself between doctors and their patients. It will also provide a disincentive to those who might possibly be entertaining entering the health care field as doctors in the future.
This has nothing to do with markets and voluntary exchange. This is about government intrusiveness, regulatory overkill and rampant bureaucracy in action:
Dear Congressman Brooks,
As a practicing family physician, I plead for help against what I can best characterize as Washington’s war against doctors.
The medical profession has never before remotely approached today’s stress, work hours, wasted costs, decreased efficiency, and declining ability to focus on patient care.
In our community alone, at least 6 doctors have left patient care for administrative positions, to start a concierge practice, or retire altogether.
Doctors are smothered by destructive regulations that add costs, raise our overhead and ‘gum up the works,’ making patient treatment slower and less efficient, thus forcing doctors to focus on things other than patient care and reduce the number of patients we can help each day.
I spend more time at work than at any time in my 27 years of practice and more of that time is spent on administrative tasks and entering useless data into a computer rather than helping sick patients.
Doctors have been forced by ill-informed bureaucrats to implement electronic medical records (“EMR”) that, in our four doctor practice, costs well over $100,000 plus continuing yearly operational costs . . . all of which does not help take care of one patient while driving up the cost of every patient’s health care.
Washington’s electronic medical records requirement makes our medical practice much slower and less efficient, forcing our doctors to treat fewer patients per day than we did before the EMR mandate.
To make matters worse, Washington forces doctors to demonstrate ‘meaningful use’ of EMR or risk not being fully paid for the help we give.
In addition to the electronic medical records burden, we face a mandate to use the ICD-10 coding system, a new set of reimbursement diagnosis codes.
The current ICD-9 coding system uses roughly 13,000 codes. The new ICD-10 coding system uses a staggering 70,000 new and completely different codes, thus dramatically slowing doctors down due to the unnecessary complexity and sheer numbers of codes that must be learned.
The cost of this new ICD-10 coding system for our small practice is roughly $80,000, again driving up health care costs without one iota of improvement in health care quality.
Finally, doctors face nonpayment by patients with ObamaCare. These patients may or may not be paying their premiums and we have no way of verifying this. No business can operate with that much uncertainty.
On behalf of the medical profession, I ask that Washington stop the implementation of the ICD-10 coding system, repeal the Affordable Care Act, and replace it with a better law written with the input of real doctors who will actually treat patients covered by it.
America has enjoyed the best health care the world has ever known. That health care is in jeopardy because physicians cannot survive Washington’s ‘war on doctors’ without relief.
Eventually the problems for doctors will become problems for patients, and we are all patients at some point.
Dr. Marlin Gill of Decatur, Alabama
This is the face of government run healthcare.
The White House has once again bowed to screaming Democrats worried about the mid-term elections and this time cancelled cuts to Medicare Advantage. As you recall, these cuts were made to pay for ObamaCare:
The Obama administration announced Monday that planned cuts to Medicare Advantage would not go through as anticipated amid election-year opposition from congressional Democrats.
The cuts would have reduced benefits that seniors receive from health plans in the program, which is intended as an alternative to Medicare.
Under cuts planned by the administration, insurers offering the plans were to see their federal payments reduced by 1.9 percent, which likely would have necessitated cuts for customers.
Instead, the administration said the federal payments to insurers will increase next year by .40 percent.
The healthcare law included $200 billion in cuts to Medicare Advantage over 10 years, in part to pay for ObamaCare.
The Centers for Medicaid and Medicare Services (CMS) said that the cuts weren’t necessary because of an “an increase in healthy beneficiaries under Medicare.” That, of course, makes little sense. Medicare is a mandatory insurance program for people 65 and older. How that demographic suddenly got “healthier” remains a mystery, but there you have the “reason” for the decision. Well, that and mid-term elections.
As for cost, someone needs to explain how ObamaCare is to be funded if the mechanisms set in place to pay for it keep getting delayed or cancelled.
When CBO analysts most recently looked at the gross cost of expanding Medicaid and giving subsidies to individuals to purchase insurance through the new exchanges — the bulk of the law’s spending — they came up with slightly more than $2 trillion for 2015 through 2024.
After deducting some offsets from the law — such as penalty payments from employers and individuals due to insurance mandates — CBO estimated the net cost at nearly $1.5 trillion.
The CBO hasn’t done a standalone deficit analysis on Obamacare since 2012, but at that time, its analysts estimated the law would reduce deficits by $109 billion, once all tax increases, cuts to Medicare and other savings are taken into account.
When referring to the “cost” of Obamacare, the fair thing to do is cite the $2 trillion figure — and no, that isn’t just because it’s a higher number. The gross figure represents how much the federal government will have to spend on expanding coverage through Obamacare, at least according to the CBO. If the government weren’t spending $2 trillion on insurance coverage, that’s money that could be going to reducing the deficit, spending more on infrastructure or a host of other theoretical policies.
As mentioned above, that $2 trillion cost had about $500 billion in offsets. But the penalty payments from employers and individuals has been delayed and now the $200 billion in Medicare Advantage cuts/offsets is cancelled, or so says the imperial presidency. That, of course, doesn’t change the cost, it only increases it.
Short term political pandering aimed at winning elections as usual from this administration. Ironically, it has been more effective than the Republicans in dismantling portions of the atrocity known as ObamaCare. So, thanks to the mid-terms, Republicans get one of the cuts they wanted reversed cancelled. Of course they won’t get credit for it – but then that’s the plan isn’t it?
And, this is all likely temporary anyway, even though the White House and Dems won’t spin it as so:
“The changes CMS included in the final rate notice will help mitigate the impact on seniors, but the Medicare Advantage program is still facing a reduction in payment rates next year on top of the 6 percent cut to payments in 2014,” said [AHIP] president Karen Ignagni.
But it will get them through the election cycle, won’t it?