Free Markets, Free People

legislation

If ObamaCare is so good, why all the exemptions?

The short answer, of course, is it is a monstrous bill law those effected by it are just beginning to understand. And maybe it’s just me but when you begin to grant waivers to the law, a) you’re playing special interest politics (it applies to the little people but not the politically well connected) and b) the law is obviously flawed.

The total of exemptions granted by the Obama administration has now swelled to 222  (list here).

One of the more recognizable business names included on the newly-expanded list of waivers issued by the feds is that of Waffle House, which received a waiver on November 23 for health coverage that covers 3,947 enrollees.

Another familiar name was that of Universal Orlando, which runs a variety of very popular resorts in the Orlando, Florida area. Universal was given a waiver for plans that cover 668 workers. These waivers deal with limited health benefit plans, sometimes referred to as "mini-med" policies, which companies as large as McDonald’s use for some its employees. The plan have limits on how much can be paid out in coverage, limits which would be phased out under the new health reform law.

The feds though have granted waivers from that law, amid concern that certain groups would drop their health insurance programs entirely. Those waivers are good for one year, and can be considered for renewal.

That final line is important because, of course, it gives the government leverage to push for changes in coverage within the companies it has to this point exempted. If not, it simply lets the exemption expire. But that doesn’t change the fact that the only the politically connected to this point have been exempted. Instead of admitting the problem with the law and issuing a blanket exemption to all businesses that are effected like the favored few, the administration prefers to do “favors” for those that apply.

Among those so favored to this point are – surprise – a number of unions:

Several weeks ago, critics singled out a number of unions which had received government approval for exemptions from certain provisions of the law dealing with annual medical spending limit requirements.

And there are more unions who have received waivers in this latest batch, like the Bricklayers Local 1 of MD, VA and DC, the United Food and Commercial Workers Union in Mount Laurel, New Jersey, the Indiana Teamsters Health Benefits Fund, Service Employees International Union Local 1 Cleveland Welfare Fund, and more are listed.

This, of course, is a result of poorly written legislation that wasn’t debated, vetted or carefully considered.  It is a mish-mash of liberal wishes and desires bundled in a huge and unread document and shoved through the legislative process in a most underhanded way.  The fallout has been gradual but building as more and more companies get into the nitty-gritty of what this will mean to them.  And the waiver apps are flying.  Since mid-November, the waivers granted has doubled from 111 to 222.   And there’s no reason to believe that’s going to slow down as the implementation dates near.

It is also another in a long line of reasons the business climate in this country remains unsettled.  The fact that a company gets a waiver doesn’t mean that within a year the administration will decide it must comply.  I’m sure these businesses have already calculated the cost to them of such a demand.  Would you do any major hiring or expansion with that hanging over your head?

Yeah, neither would I.

~McQ

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Subject(s): Honduras/China, pending legislation on the environment (cap-and-trade) and health care and some of the “nuggets” to be found in there, the question of another stimulus and Obama’s claim this one is working just fine – and anything else we feel like talking about.

UPDATE [Dale]: Health care, too.

Government: Always Late To The Recession

How does one demonstrate that if left alone, the economy will recover from a recession without government intervention?

Charts like this are helpful:

Quite a track record.

Quite a track record.

As Nick Gillespie says, if the chart is true, we must be beginning the recovery. Of course the larger point is, economies do recover without intervention and, in many cases, intervention comes as too late.

What it does, however, is give politicians a means of claiming credit for something that was already underway. And, as is obvious, putting you in debt up to your ears is fine with them if it buys them another 2, 4 or 6 years.

~McQ