Or at least that’s the thesis of one Allen Clifton.
Which brings me to President Obama. While I’m not calling him a genius, I do think he’s extremely intelligent. I also believe that his tendency to use “big picture” thinking while drafting policy is something most Republican voters simply can’t understand.
Now understand it this comes from orthodoxy central, aka a site called “Forward Progressives”. And this is apparently considered “forward thinking”. We just are too stupid to get it.
He uses Obamacare as an example of us not getting it:
While many Republicans want to look at the “now” aspect of the Affordable Care Act, they seem unable to grasp the reality that as more Americans get health insurance, giving them access to preventable care, this lowers expenses down the road for everyone. If people can prevent very costly heart attacks, strokes or other debilitating health issues now, that’s an overall savings for practically everyone from consumers to health insurers to doctors who now have more patients. Quite literally, improving the overall health of Americans will improve the health of this country. It even makes sense for our economy. If workers are healthier, because they have access to quality health care, that means there will be fewer people calling in sick to work, showing up sick to work (putting other employees at risk) or relying on government programs because their health conditions (that were preventable) render them unable to work at all.
But to see all of that requires “big picture” thinking and Republicans seem unable to understand anything beyond the spoon-fed bumper sticker talking points they’re given by the GOP and the conservative media.
We could spend 5,000 words and countless hours expounding on how clueless this is. Health care doesn’t get less expensive if you “subsidize” it by penalizing those who work and earn by making them pay for those who don’t. Period. Wealth is something earned by individuals, not governments. When government’s take other’s wealth to pay for government priorities, it leaves less for the individual who earned it to spend on their priorities. This isn’t a hard concept to grasp, but seems beyond Mr. Clifton and our brilliant president. While all the pie in the sky BS about a healthier American work force sounds wonderful, for the most part it isn’t the workforce that’s benefiting from this subsidy. So while you may want to see this as a “far reaching” plus, it isn’t. There are certainly ways to approach the lack of insurance, but this isn’t one of them.
Mr. Clifton then doubles down on his ignorance of economies with this “Underpants Gnomes” paragraph:
Minimum wage is another issue you see this with. Republicans constantly paint it as a “job killer” (it’s not) while also rallying against the millions of people who are on government assistance. Funny thing though, a good portion of the Americans who are on government assistance have jobs. If we made sure that no American working full-time had to rely on government programs just to survive, instantly we would save our country hundreds of billions of dollars over the years. Not only that, but when Americans have more money, they have more to spend. And what’s the biggest driver of economic growth? Consumer spending. More consumer spending means higher profits and higher demand, which means – more jobs.
But once again, when it comes to Republicans and explaining job creation, anything outside of “tax cuts create jobs” is often too complex for many of them to understand.
So, where again does the money come from to pay that $15 minimum wage? The earnings of the business. And what will a business have to do if it has to pay that wage? Well it has some choices – raise prices, lay off workers, go out of business, etc.
Would someone have more money to spend? Yes, if they weren’t laid off or their business didn’t close their doors.
And how big of a jump in spending money would they have? Well initially a bit. But then prices would adjust, because, you see, as the price of labor goes up, so do the prices of commodities and goods. In other words, if they still have a job and they’re earning $15 an hour, fairly quickly prices will catch up with their gain and their purchasing power will be about the same as they previously enjoyed. Meanwhile, businesses who can keep the doors open are raising prices and laying off workers, or considering automation as a replacement for workers.
Apparently this too is beyond the grasp of Mr. Clinton and the brilliant president. Half the story, in both cases, is where Clifton stops. And this is considered just freaking brilliant by the boob.
And you wonder why the left lives in a fantasy world? This isn’t rocket science nor is there a dearth of examples proving these points. They are everywhere, throughout history. Look them up? Oh, hell no … let’s continue to live in our fantasy orthodoxy and call everyone else stupid.
See climate change for further proof of this nonsense.
Forget the Supreme Court ruling that may gut it, the program is failing all on its own as it is unable to keep or deliver on any of its promises. Include with that the financial disaster it has become and you have the perfect vehicle for defining “a failure”:
ObamaCare’s supporters would like everyone to believe that with Healthcare.gov now functioning, everything is just fine and dandy. Contrary to what the conservative press (which I guess would include me) has been saying about the many problems of ObamaCare, Vox‘s Ezra Klein declared last September that “in the real world, it’s working.” In February, his fellow Voxland inhabitant Sarah Kliff rattled off eight ways in which the law had proved its critics wrong.
But has it? Not really.
For starters, the exchanges have enrolled about 3 million fewer people than the Congressional Budget Office projected in 2010. And far fewer of the enrollees are from the ranks of the uninsured than hoped. Medicaid enrollment is lower too, for the simple reason that states refused to expand the program.
Ezra Klein hasn’t visited the “real world” in years (Dale and I asked him once if he’d visited a VA hospital after he waxed enthusiastic about how good the VA was. Of course, he hadn’t). And, as expected, the government’s predictions, which were used to justify Obamacare, were woefully wrong. No surprise to some of us.
The core of President Obama’s sales pitch to America was that the program, which he called the Affordable Care Act, would “bend the health care cost curve” and save an average family $2,500 on their premiums each year. How would it accomplish this feat? Essentially, he said, by forcing uninsured “free loaders” who show up in the emergency room to obtain free care to either buy (subsidized) coverage on the insurance exchange or sign up for the expanded Medicaid program. The point was that if they had coverage, they’d get cheaper care sooner in a doctor’s office rather than more expensive care later in a hospital emergency room.
Things don’t seem to be working out that way. ObamaCare is indeed bending the cost curve — but up, not down.
In fact ER visits are up under Obamacare, not down (another supposed justification for the law). As for rates? They continue to go through the roof:
Every year, companies selling coverage through ObamaCare’s exchanges have to ask state regulators to approve their premiums for the following year — a practice more appropriate for the Soviet Union than an allegedly free-market economy. And this year, according to several news reports, some are requesting increases of over 50 percent.
In New Mexico, market leader Health Care Service Corp. is asking for an average jump of 51.6 percent in premiums for 2016. The biggest insurer in Tennessee, BlueCross BlueShield of Tennessee, has requested an average 36.3 percent increase. In Maryland, market leader CareFirst BlueCross BlueShield wants to raise rates 30.4 percent across its products. Moda Health, the largest insurer on the Oregon health exchange, seeks an average boost of around 25 percent.
Some states are even higher.
The reason is called “economics”. It is a fairly simple concept to grasp. When you subsidize millions who don’t pay full price or any at all with the money those who do pay full price pay, the cost curve for those paying has nowhere to go but up. Surprise, that’s precisely what is happening, despite promises to the contrary (which we here knew were full of hot air when they were first uttered).
And there are more hikes on the horizon:
What’s more, these hikes are likely just a prelude to far bigger ones in future years. Why? Because two programs — risk corridor and reinsurance — that were meant to “stabilize” rates in ObamaCare’s first few years so that insurers could obtain the right mix of enrollees are set to expire next year. (The risk corridor program slaps a fee on insurance companies that have lower-than-expected medical losses, and compensates those that have more. The reinsurance program imposes a fee on insurance policies and funnels it to insurers with high-risk individuals.) With these programs gone, the challenge of maintaining a balanced risk pool will become even harder.
The expanded Medicaid program is no picture of robust health, either. It has produced no cost-saving decline in emergency room visits, nor has it contributed to hospital profitability, as was hoped.
What a freakin’ mess. So?
So, to recap: ObamaCare has fallen short of its enrollment target, hiked insurance premiums, failed to cut down on ER visits, and flopped in its attempt to improve hospitals’ bottom line.
But its real problem is the lawsuit? Maybe treatment for delusions is covered under ObamaCare!
Hey, like I said, some people think the VA system is the cat’s meow. There is no hope for them.
“It’ll save the average family $2,500 a year!” That was the promise. Here’s the reality:
… It will cost the federal government – taxpayers, that is – $50,000 for every person who gets health insurance under the Obamacare law, the Congressional Budget Office revealed on Monday.
… The numbers are daunting: It will take $1.993 trillion, a number that looks like $1,993,000,000,000, to provide insurance subsidies to poor and middle-class Americans, and to pay for a massive expansion of Medicaid and CHIP (Children’s Health Insurance Program) costs.
Offsetting that massive outlay will be $643 billion in new taxes, penalties and fees related to the Obamacare law. …
As you’ve probably surmised, I’m taking a bit of a break the last two weeks of the year. Decompress, catch up on other things and generally relax. That said, I was happy to see that Erb and the anti-Erb have managed to provide the best in entertainment for the QandO faithful.
Looks like the anti-police riots and ambushes are reaching their natural end. That’s what happens when you overreach. I’m not at all implying that some protest isn’t necessary or warranted. But when it goes beyond that to murder, well, then you’re likely to lose any sympathetic audience you might of had prior to that. And that’s pretty much what has happened.
I’m also finding if pretty interesting to watch de Blassio sink in his own man-made rhetorical swamp. Great choice, NYC. Now live with it.
Of course we’re having to live with the choice of enough of America’s voters that we’re into year 6 of the 8 year nightmare presidency. And what do we have on the horizon? More of the same. A Bush/Clinton run? If so, we’re worse off than I think. No more of either family … please!
As for Elizabeth Warren? Yeah, let’s again go for a junior Senator who has never run anything or done anything except claim minority status to get a good paying gig in academia that certainly didn’t tax her “work ethic”. Let’s again let some smooth talking “populist” promise us the moon and deliver Ecuador. And, yes, I’m talking to the press.
The GOP? Name someone with a chance for a nomination and you’ll likely name someone I wouldn’t want anywhere near the Oval Office.
Then there is the GOP Congress. It appears Obama is saying he will have a new use for his pen these last two year – the veto pen. I say that’s good news. Here’s a chance for the GOP and Congress to use an opportunity to drop the onus for being obstructionist on the President. If they have the plums to do that. By the way the “obstructionists” in the past wasn’t the GOP but Harry Reid who wouldn’t bring passed House legislation to a vote in the Senate (not that the press ever caught on) – that problem, theoretically, no longer exists). Do I have any faith the Congressional GOP will inundate the President with legislation he will have to sign or veto? No. None. Recent history gives me no warm and fuzzy about that – especially while McCain and Graham are still in the Senate. Look for McCain and his lapdog Graham to again resurrect the “Maverick” brand and spend as much time as Reid screwing up any plans the Senatorial GOP might have to push legislation to Obama’s desk.
Oh …. guess what the NY Times has discovered? There may not be enough doctors to cover any expanded insurance rolls … especially Medicaid. Why? Well for one thing, there are a finite number of doctors that can see a finite number of patients and having insurance hasn’t changed that fact one bit. But, what is a determiner in who may or may not get to see a doctor is how much that doctor gets reimbursed for his/her work. And Medicaid is cutting that amount by about 43%. That means doctors will likely opt out of seeing Medicaid patients (or at least new ones). In essence then, not much changes in the real world despite the utopian plans of our betters. While more may have insurance, emergency rooms will be the “primary care” unit for most and “preventive care”, a supposed goal of this abomination we call ObamaCare, is still a fantasy without realization. Funny how ignoring immutable facts (number of doctors and how humans respond to incentive or lack thereof) always ends up with predictable results.
Bah … enough. I’m supposed to be taking a break.
See you next year. In the meantime, happy New Year!
Actually, the “American voter” wasn’t as stupid, as Jonathan Gruber claimed, because, as he admits numerous times, they had to resort to outright fraud to get the ACA past those voters. Brian Faughnan summarizes:
So Gruber is previously on the record saying Obamacare subsidies are available ONLY in states that set up exchanges – not in all states. He has also said the law was sold in a deceptive way to fool stupid voters. Now we see him claim that the Affordable Care Act was actually a way to get rid of employer-provided health care, but it had to be done secretly so the American people would go along with it:
“It turns out politically it’s really hard to get rid of,” Gruber said. “And the only way we could get rid of it was first by mislabeling it, calling it a tax on insurance plans rather than a tax on people when we all know it’s a tax on people who hold those insurance plans…
Gruber explains that by drafting the bill this way, they were able to pass something that would initially only impact some employer plans though it would eventually hit almost every employer plan. And by that time, those who object to the tax will be obligated to figure out how to come up with the money that repealing the tax will take from the treasury, or risk significantly adding to the national debt.
“What that means is the tax that starts out hitting only 8% of the insurance plans essentially amounts over the next 20 years essentially getting rid of the exclusion for employer sponsored plans,” Gruber said.
But to these ethically crippled jerks, it’s not fraud, it’s “clever(ness)”:
A video that surfaced this week shows Gruber telling a Rhode Island audience in 2012 how the feds will collect a tax on high-end policies without families realizing they’re actually paying the tax via insurers: “(I)t’s a very clever, you know, basic exploitation of the lack of economic understanding of the American voter.”
Basic “exploitation” – comforting to know that your government actually and purposely was deceitful with the aim of fooling the public into accepting something the law wasn’t. Name a fraudster anywhere who doesn’t think he’s “clever”.
Now tell me — what do we usually call such attempts?
And what do we do with those who attempt to defraud the public?
We put them in jail.
But, you know, that would be “accountability”.
We apparently don’t do “accountability” in the US. So fraudsters are free to brag about how they did what they did without worrying about facing any consequences.
And the left – well, here’s what they’re worried about:
Former White House press secretary Jay Carney told CNN that Gruber’s remarks in general were “very harmful politically to the president.”
It’s up now at the podcast page.
The subdepartment of “If You Like Your Coverage, You Can Keep Your Coverage“:
Small companies are starting to turn away from offering health plans as they seek to reduce costs and increasingly view the health law’s marketplaces as an inviting and affordable option for workers.
In the latest sign of a possible shift, WellPoint Inc. said Wednesday its small-business-plan membership is shrinking faster than expected and it has lost about 300,000 people since the start of the year, leaving a total of 1.56 million in small-group coverage.
Of course anyone with a brain and a passing understanding of economics and human nature saw this coming – despite the assurances of our elites. It is called “responding to incentives or disincentives” – something human beings have done since the dawn of our time.
Provide enough of a disincentive to maintain the status quo and you won’t. You’ll go with what is best for the business. And the incentive to drop health care plans has been provided by this awful ACA law. Now these people will go onto the exchanges and pick a plan with huge deductibles that will never be met in a year. They’ll effectively pay for their medical care. Or, we’ll pay for their medical care through subsidies.
Result? Well, as you can imagine with huge deductibles, people will likely go to the doctor less and one of the supposed reasons this law had to be passed was in order to stress and implement “preventive medicine”. But if you have a $6,000 deductible, and are a middle income family that wouldn’t qualify for subsidies, when are you going to visit the doctor? When whatever problem you have is so bad you have little choice. Of course, that’s the most costly way to do this, isn’t it?
So now we have a huge problem, don’t we? And what will we point to as the cause of that problem? That’s right … government intrusion. Oh, the good news? Their high deductible coverage will be portable. But we could have solved that problem without ever creating this health care monster we’re stuck with now, couldn’t we?
The Obama economy is a mess, with median incomes retreating, fudged employment numbers and generally the usual mess you can expect from a over-regulated and highly manipulated “market”. In other words, it stinks because of government as much as anything else. Our betters seem not to understand the very basics of human nature – humans respond to incentives. So they continue to cobble together more and more feel good projects (i.e. they make the “elite” feel good) that backfire. Why? Because humans respond to disincentives as well – and their feel good projects are long on disincentives, something they can’t seem to wrap their heads around.
By design, the next example of that will take place after the November mid-term elections:
Starting this year, the United States’ working population will face three major employment disincentives resulting from the very benefits the Affordable Care Act (ACA) provides: (1) an explicit tax on full-time work, (2) an implicit tax on full-time work for those who are ineligible for the ACA’s health insurance subsidies, and (3) an implicit tax that links the amount of available subsidies to workers’ incomes.
A new study published by the Mercatus Center at George Mason University advances the understanding of how much these ACA taxes will reduce overall employment, and why. It concludes that the reduction will be nearly double that projected by previous analyses. Labor markets ultimately will reduce weekly employment per person by about 3 percent—translating to roughly 4 million fewer full-time-equivalent workers.
4 million more jobs in an economy already suffering one of the lowest labor participation rates in its history. Why have “middle class” wages stagnated or dropped? One major reason has to do with disincentives like this. Its like the $15 minimum wage trope. Force it on business and they have a “disincentive” to hire people for jobs that aren’t worth that and an incentive to automate or go short handed and double up the work on someone else.
That’s precisely the type of disincentive that ObamaCare is about to inflict on the economy. We’ll then hear the usual nonsense about greedy and uncaring companies and how the “market” has failed us. It is as predictable as the next blizzard being somehow blamed on global warming.
Meanwhile, these 4 million that may join the currently unemployed are real people who will suffer real problems because of the disincentive provided by a very poorly thought out law that won’t effect those who passed it. All Democrats can hope is that enough people will drop off the unemployment roles by the time the next presidential election rolls around that the fudged unemployment stats look acceptable.
What a hell of a way to run a railroad.
The New Republic publishes an article saying, in essence, “see, the ObamaCare increases are nothing to really get excited about“. And to emphasize the point, they issue this Price-Waterhouse map (the reason they use it is as an appeal to authority):
If you look at it, you’d likely conclude that they were mostly right … where’s the problem? Only Indiana seems to have a real problem and its increases are only around 15%.
And, you know, if Price-Waterhouse says it, it must be true.
Researching it beyond that, well, that would be journalism:
INDIANA: 2015 premiums increases ‘as high as … 46-percent’ “Initial 2015 premiums filed for the Obamacare exchanges in Indiana ranged from as high as a 46-percent hike to as low as a 9-percent cut.” (Indianapolis Business Journal, 5/19/14)
MARYLAND: 2015 premiums could increase up to 30% “Maryland’s dominant insurance company, CareFirst, is proposing hefty premium increases of 23 to 30 percent for consumers buying individual plans next year under the federal health-care law, according to filings released Friday.” (The Washington Post, 6/6/14)
WASHINGTON: 2015 premiums could increase ‘up to 26%’ “If approved, rate increases for 2015 individual health plans proposed by 12 insurance companies may affect most policyholders… [up] to an increase of 26 percent…” (The Seattle Times, 5/13/14)
ARIZONA: 2015 premium increases up to 25.5 percent “New filings trickling into the Arizona Department of Insurance show at least two health insurers plan to increase rates more than 10 percent. Cigna Wants To Increase Rates An Average Of 14.4 Percent And Humana, 25.5 Percent.” (The Arizona Republic, 6/2/14)
LOUISIANA: ‘Double-digit increases’ up to 24% possible “Some Louisiana private health insurers filed for double-digit percentage increases in 2015 for policies sold under the Affordable Care Act’s health exchange, according to filings this week with the Louisiana Department of Insurance.” (New Orleans Times Picayune, 7/15/14)
· “Blue Cross Blue Shield of Louisiana, the state’s largest provider, is proposing rate increases of between 18.3 percent and 19.7 percent for policyholders in its Blue Saver, Blue Max and its Multi-State individual health plans. The plans cover 52,638 people. … The 4,947 people who signed up with Human Louisiana facea hike of 15.7 percent, while the 966 insured residents with Time Insurance Company face a hike of 24 percent, according to the filings made public this week.”(New Orleans Times Picayune, 7/15/14)
TENNESSEE: 2015 Premiums Could Increase up to 21.7% “BlueCross BlueShield of Tennessee — the state’s dominant health insurance provider — is asking to raise rates by an average of 19 percent for its exchange plans in 2015, according to documents filed with the state of Tennessee. …the consumer will experience a rate increase between 6.1 percent and 21.7 percent, depending on the product he or she has bought.” (Chattanooga Times Free Press, 7/17/14)
· “Meanwhile, Cigna is requesting an average rate increase of 7.5 percent in 2015, while Kentucky-based Humana would like to boost marketplace rates by an average of 14.4 percent.” (Chattanooga Times Free Press, 7/17/14)
NEW YORK: 2015 premiums could increase up to 19.7% “Insurance firms participating in New York’s ObamaCare health exchange are seeking double-digit hikes for patient medical premiums in 2015, new figures reviewed by The Post reveal. The average hike sought by insurers for individual plans is 12 percent—but a number of firms serving large numbers of patients want to boost individual premiums by nearly 20 percent. Leading the charge is Excellus Health Plan, which is seeking to sock more than 24,000 customers with a 19.7 percent hike.” (New York Post, 7/3/14)
VERMONT: 2015 premiums could increase up to 18.3% “The two companies that sell policies on the state’s online health insurance marketplace — Vermont Health Connect — have filed requests with state regulators for big rate increases for 2015. Blue Cross Blue Shield of Vermont has asked for an average increase for its plans of 9.8 percent. … the increases would have averaged 3.3 percent if not for federal and state mandates. … MVP Health Care proposed an even bigger rate increase — an average 15.4 percent, with a range starting at 10.7 percent and rising to 18.3 percent.” (Burlington Free Press, 6/3/14)
MICHIGAN: 2015 premium increases up to 18 percent “Most people buying their own health insurance in Michigan could see near double-digit premium increases next year. State insurance regulators said Wednesday that dominant insurers Blue Care Network and Blue Cross Blue Shield want to raise rates by an average of 9.3 percent or 9.7 percent in 2015. … Humana is the insurer with the third most customers in Michigan’s individual market and seeks an average 18 percent rate increase affecting 16,600 customers.” (The Associated Press, 6/26/14)
VIRGINIA: 2015 premiums could increase up to 14.9% “…the Anthem HealthKeepers Inc. plan offered by a unit of WellPoint Inc. said it would raise premiums by an average of 8.5% across its individual plans in Virginia, which cover about 110,000 people and are sold on the online insurance exchange set up by the health law, as well as directly to consumers. … The Virginia filings show other health plans proposing rate increases ranging from 3.3% for Kaiser Foundation Health Plan of the Mid-Atlantic States, Inc., with around 10,000 members in the state, to 14.9% for CareFirst BlueChoice Inc., which said it had about 32,000 members.” (The Wall Street Journal, 5/11/14)
IOWA: 2015 premium increases up to 14.5 percent “About a quarter of a million Iowans would see their insurance rates rise next year should the state approve a request from Iowa’s dominant health insurer. Wellmark Blue Cross and Blue Shield announced Friday that it is seeking to raise premium rates for 253,000 policyholders in Iowa. Those rate increases would affect individual policyholders and small businesses. Most — 92 percent — of the proposed rate increases would be less than 5.9 percent, according to numbers provided by Wellmark. … For the remaining 7.5 percent of policyholders — those who have post-Affordable Care Act plans for individuals under 65 — Wellmark is asking for a rate increase between 11.9 percent and 14.5 percent.” (Des Moines Register, 6/20/14)
OHIO: “Premiums would increase 13 percent next year for Ohioans who buy health coverage through the federally run insurance exchange, the Ohio Department of Insurance said yesterday.” (The Columbus Dispatch, 5/30/14)
OREGON: 2015 premiums could increase up to 12.5% “Moda Health captured more than 40 percent of the state’s exchange enrollees this year, with about 95,000 people covered under its plans. The company is proposing to increase prices by an average of 12.5 percent. Only one other carrier proposed a double-digit price increase.” (The Hill, 6/11/14)
RHODE ISLAND: 2015 premium increases ‘averaging 12 percent’ Blue Cross & Blue Shield of Rhode Island is proposing 2015 premium increases averaging 12 percent for individuals and families, and 8 percent for small groups.” (Providence Journal, 5/19/14)
DELAWARE: 2015 premiums could increase 5% “Delawareans could face higher insurance costs under the Affordable Care Act next year under new rate requests from insurers. Highmark Blue Cross Blue Shield is seeking average premium increases of 5 percent for individuals who bought insurance through Delaware’s exchange.”(The Associated Press, 7/15/14)
Premiums would rise an average 13.2 percent for Floridians, according to the Florida Office of Insurance Regulation. But actual increases would vary greatly on families’ size, financial circumstances, county of residence and the types of plans they select.
All that said, that’s not the argument is it? Wasn’t the promise that ObamaCare would save families an average of $2,500 a year?
That’s what I remember.
But, you know, it’s a great success.
This week, Michael, and Dale talk about the Halbig Decision, Immigration and lawn watering.
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