Free Markets, Free People

ObamaCare

Canada healthcare – the future of the US?

Guess what folks, Canada’s moon pony and unicorn “what’s wrong with you Americans, you’re so uncivilized to not have national health care” health care system is in serious financial trouble. And, unbelievably, for the very same reason critics of the recent US health care law said would inevitably happen here. I know, I know – just hard to believe, isn’t it?

Go figure.

The crux of the problem? Well lack of money, what else?

Pressured by an aging population and the need to rein in budget deficits, Canada’s provinces are taking tough measures to curb healthcare costs, a trend that could erode the principles of the popular state-funded system.

[…]

“There’s got to be some change to the status quo whether it happens in three years or 10 years,” said Derek Burleton, senior economist at Toronto-Dominion Bank.

“We can’t continually see health spending growing above and beyond the growth rate in the economy because, at some point, it means crowding out of all the other government services.

“At some stage we’re going to hit a breaking point.”

They’re kidding, right? Weren’t we told that once government got involved this stuff would be affordable and would go on forever?

Their first target, of course, is pharmaceutical companies. They want them to slash prices. But at some point, pharma is going to say it can’t anymore. Because pharma isn’t the problem. Central control of health care delivery is. It has no flexibility, or at least not to a level that it can adapt to changes in the market with any nimbleness. That means it continues to hemorrhage money. Health care spending rises at 6% a year by plan. But it is going to, as mentioned above, begin to crowd out all other government services unless the Canadian government gets a handle on it and does so fairly quickly. Anyone know what that means?

But that deal ends in 2013, and the federal government is unlikely to be as generous in future, especially for one-off projects.

“As Ottawa looks to repair its budget balance … one could see these one-time allocations to specific health projects might be curtailed,” said Mary Webb, senior economist at Scotia Capital.

My guess is more than “one-time allocations” might be curtailed. Consider Ontario:

Ontario says healthcare could eat up 70 percent of its budget in 12 years, if all these costs are left unchecked.

“Our objective is to preserve the quality healthcare system we have and indeed to enhance it. But there are difficult decisions ahead and we will continue to make them,” Ontario Finance Minister Dwight Duncan told Reuters.

That’s bureaucratise for “we’re going to have to ration this stuff and do it pretty darn radically” – unless, of course, Ontario would prefer to spend 70% of its budget on health care costs.

I doubt that’s the case.

Here again we have the end game (or at least the results of the game at this point headed to its inevitable end) of where we’re headed.

My favorite line in the story:

Scotia Capital’s Webb said one cost-saving idea may be to make patients aware of how much it costs each time they visit a healthcare professional. “(The public) will use the services more wisely if they know how much it’s costing,” she said.

“If it’s absolutely free with no information on the cost and the information of an alternative that would be have been more practical, then how can we expect the public to wisely use the service?”

No – she really said that. And that’s the type of person who first embraced the moon pony and unicorn promises that were made for the system.

The problem with all of this “reality” suddenly descending on the system? It is pretty apparent to anyone who has studied a welfare state (and the same place we’re now headed):

But change may come slowly. Universal healthcare is central to Canada’s national identity, and decisions are made as much on politics as economics.

“It’s an area that Canadians don’t want to see touched,” said TD’s Burleton. “Essentially it boils down the wishes of the population.

And so it goes, another chapter in the inevitable end of all such programs – over used, broke and headed toward strict rationing. And the moon pony crowd thinks that if they just tell Canadians how much it really costs when they see a doctor, they’ll do it less and save the system.

Heh, yeah, good luck with that.

~McQ

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More good news vis a vis ObamaCare – Small business’s won’t grow (update)

Or at least they won’t be given much of an incentive to do so if they provide health care:

A study by the National Center for Policy Analysis shows that tax credits in the new healthcare law could negatively impact small-business hiring decisions.

The new law provides a 50 percent tax credit to companies offering health coverage that have fewer than 10 workers who, on average, earn $25,000 a year. The tax credit is reduced as more employees are added to the payroll.

The NCPA study finds the reduction in tax relief to be a cost concern for companies looking to hire additional workers, but operate on slim profit margin yet still provide employee health coverage.

A couple of points – A) the tax credit is temporary (until 2016), and, only covers a small part of the cost of hiring an employee. However, B) it is a available to all small companies with 25 employees or less already offering health insurance. The stated purpose of the tax credit is to encourage those small businesses who fit the template (10 or fewer workers averaging about $25k a year, up to 25) to continue to provide health care and encourage those who aren’t to do so. But it provides the tax credit on a sliding scale, and that scale discourages hiring at the scale breaks:

Using insurance premium cost projections supplied by the nonpartisan Congressional Budget Office (CBO), the study states that the credit reaches its optimal point at 13 workers, with relief peaking at $36,400 for qualifying business.

After the 13th worker the economics surrounding the credit change, the study says.

For employers with 15 workers, taking on an additional hire will reduce the credit by $1,400. For a company looking to expand from 20 to 21 workers, the credit will shrink by $3,733. And businesses will take a $5,600 reduction on the credit when hiring the 25th worker.

The credit phases out for companies with at least 26 employees.

If the company is already at 13, it most likely won’t hire 14, or 15. If it is at 20, it’s most likely not going to hire 21. And 26 is most likely out of the question.

Bill Rys, tax counsel at the National Federation of Independent Businesses, told The Hill that while demand is the primary driver for hiring decisions, costs related to new hires is a key factor.

“To the extent that a tax credit is related to the benefits that you’re paying your employees, it is going to be a factor in determining what is the cost of the employee,” he said. “The fact that you’re losing a portion of the credit because you brought in a new employee is going to have to factor into the cost of who you’re hiring.”

So there is a negative incentive – at least as long as the tax credit exists – to hire people if it will lessen the tax credit. Instead:

“If a business can make a decision to substitute capital for labor – say, contract the procedure out or automate it – I believe [losing the tax credit] will play an important part in the reluctance to hire,” Villarreal said, adding, “It’s puzzling that we have this perverse incentive not to have businesses grow by not encouraging them to hire additional workers.”

Brilliant.

UPDATE: Even more good news as companies read through the legislation and discover little hidden nuggets of penalty and cost.  For instance:

About one-third of employers subject to major requirements of the new health care law may face tax penalties because they offer health insurance that could be considered unaffordable to some employees, a new study says.

It seems the law deems insurance that is unaffordable by a family to be an insurance cost that is more than 9.5% of their household income. Of course, few if any companies know the “household income” of their employees. That’s because, mostly, it’s none of their business. But also because it may be comprised of a second or third income, dividend, disability or even retirement income.

But, if it is over 9.5% of that household income, companies can be fined up to $3,000 per employee. Of course they won’t know that until and unless the employee files for a federal tax credit because he or she has determined their insurance cost is over 9.5% of their household income (is that gross or AGI?):

If an employer’s health plan is deemed unaffordable, the worker may qualify for a federal tax credit, or subsidy, to buy coverage in a new state-based marketplace known as an insurance exchange. A person claiming a credit must disclose income information to the exchange. The exchange will then notify employers if any of their workers qualify for subsidies.

Along with notifying the employer of this info, I suppose the “exchange” will also notify the appropriate government agency that is responsible for levying the fine.

Wow – no incentive there to just drop coverage for everyone, is there?

What a monstrosity the Democrats have brought upon us.

~McQ

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Observations: The Qando Podcast for 16 May 10

In this podcast, Bruce, Michael, and Dale discuss DADT, The Euro, and the spiraling cost of ObamaCare…even before we’ve gotten any of it.

The direct link to the podcast can be found here.

Observations

The intro and outro music is Vena Cava by 50 Foot Wave, and is available for free download here.

As a reminder, if you are an iTunes user, don’t forget to subscribe to the QandO podcast, Observations, through iTunes. For those of you who don’t have iTunes, you can subscribe at Podcast Alley. And, of course, for you newsreader subscriber types, our podcast RSS Feed is here. For podcasts from 2005 to 2009, they can be accessed through the RSS Archive Feed.

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Welfare State In Crisis

The bailout of Greece may not work. Spain is teetering on the edge of serious financial doom. The Euro is taking a beating. And the banks of Europe are not looking too healthy overall. Meanwhile, here in the States, unfunded government debt, already expanding at an unprecedented rate, is set to explode. What do all of these things have in common? They are the direct result of expanding the welfare state without any means of actually paying for all of it.

In truth, there is never a way to pay for expanding the welfare state because, while wealth creation isn’t a zero-sum game, the population of wealth-creators is; after all, not just anyone can create electricity, telephones, heart medications, MicroSoft, Wal-Mart, or even pencils without some know-how, sweat and inspiration. If that were possible, then wealth creation could never be retarded, regardless of the impediments. Some wise, noble, and completely selfless individual would always emerge to drive the economy forward. Alas, self-interest trumps all, without which wealth-creation is for the horses.

No matter how ingenious the plan, or divine the motives, the only way for governments to fund the welfare state is to tax the wealth-creators. As even the most Marxist of intellectuals knows, if you want less of something, then tax it. This is why cigarettes are levied against in ridiculous proportions, and why carbon taxes are considered (by some) to be the savior of our planet. Well, taxing wealth-creation works exactly the same way: tax it more, and you will get less of it. Which leads to the inexorable conclusion that, as the governments of the world sink deeper into fiscal crisis, the looters will be coming en masse.

Does that mean that we are in for another Great Depression? Not necessarily. In fact, I predict that no such thing will occur. For starters, we have many institutions in place today that didn’t exist in the 1930’s such as the FDIC, Social Security, Medicare, the IMF, and the World Bank. Some of these things are arguably beneficial in that they smooth out the rough patches that economies inevitably encounter. The U.S. economy, for example, may not have realized the devastation it did if old people, like McQ, could have survived without taxing their families’ resources so much, or the FDIC had been in place to quell bank runs. Maybe. But more importantly, in this day and age our politics and law-making bodies (and those of every democratic society) are dominated by those whose own self-interest is firmly grounded in the ability to buy votes. That ability is highly dependent upon feeding the welfare state, since the vast majority of votes are bought from those who don’t create electricity or heart medications. This is why politicians of all stripes won’t take steps that would decrease the welfare state, because to do so will cost them votes — to the politician who promises more largesse at the expense of whatever hated rival is being villainized at the time. Accordingly, the odds are rather stacked against wealth-creators continuing to employ their skills in service of the very state that punishes them.

Instead of the Great Depression, Part Deux, I would predict that the elites (those, and their friends, who hold the power to dole out goodies for votes) will shuffle the deck just enough to ensure that they stay in favor, while allowing the overall health of the economy to softly fade into oblivion. They are like Dr. Kevorkian administering to capitalism. The ability to create wealth will slowly continue to be arrogated to the governors and “experts,” while the welfare state expands in decrescendo. Eventually, we will be left with something akin to the Ottoman Empire: all power and glory in name only, inside a rotting shell, harkening back to a time so dissimilar as to be unworthy of the title. What’s left will be hopeless, farcical and cruel, and will not have the slightest ability to nurture the welfare state that started it all. Perhaps the “Long Morose” would be a better title.

Irrespective of my gloomy predictions, there simply isn’t any question that, at some point, the beneficiaries of the great welfare state will have to take a bath. Most likely, that day will come when everyone jumps in the tub together. Until that time, prepare for the politically powerful to loot the wealth-creators out of existence in order to pay off the welfare beneficiaries. Eventually the only ones left to take that bath will be the filthy and the unwashed.

The ObamaCare fallout continues

You remember when AT&T and other companies immediately took write downs against profit soon after the ObamaCare legislation was signed into law?

Henry Waxman and Bart Stupak reacted immediately calling for a Congressional hearing so the CEOs of some of these companies could be called on the carpet for trying to show up this fabulous law.  Waxman whined that wasn’t its intent.  And then, mysteriously, a week or so later, they quietly canceled the hearings.

In a memorandum summarizing its investigation, the Democratic staff of the committee said, “The companies acted properly and in accordance with accounting standards in submitting filings to the S.E.C. in March and April.”

Moreover, it said, “these one-time charges were required by applicable accounting rules.” The committee staff said this view was confirmed by independent experts at the Financial Accounting Standards Board and the American Academy of Actuaries.

Oops.  Waxman and Stupak tried to recover a little by  saying:

“Companies like AT&T, Verizon and a range of stakeholder associations are hopeful that the benefits of the new law will outweigh the costs,” Mr. Waxman and Mr. Stupak said in a memorandum to committee members. “But they cannot quantify the benefits until the law is implemented.”

Well, apparently they’ve found some more of those “benefits” in the law:

AT&T, which took a $995 million charge to reflect the impact of the health care overhaul, said it would be “evaluating prospective changes to the active and retiree health care benefits offered by the company.”

Under another provision, employers may be subject to financial penalties if they do not offer health insurance to employees. Documents provided to Congress by AT&T indicate that its medical costs in 2009 were $4.7 billion, divided about equally between active employees and retirees — far more than it would pay in penalties if it did not provide coverage.

Verizon said it was taking a $970 million charge against earnings because of the change in tax treatment of a subsidy it receives for retiree drug coverage. In addition, Verizon said it could be affected by a new tax on high-cost health plans that takes effect in 2018.

“Many of the plans that Verizon offers to employees and retirees are projected to have costs above the thresholds in the legislation and will be subject to the 40 percent excise tax,” the company told employees.

So obviously, in the case of AT&T (and many other companies) they’re going to be called into Congressional hearings for breaking Obama’s “if you like your doctor and you like your plan, you can keep it” promise, right?  I mean, those are the “benefits” the employees of AT&T and Verizon seem likely to “enjoy” when the law is implemented.

In a general analysis of the new law, Verizon said, “To avoid additional costs and regulations, employers may consider exiting the employer health market and send employees” to state-run insurance exchanges, where people can buy insurance.

A Caterpillar executive made a similar point in an e-mail message to colleagues, saying the tax changes could “drive many employers to just drop coverage for retirees altogether, and let the government foot the whole bill.”

I’d like to write this off to the law of unintended consequences, but that would be pure nonsense.  Not only was this known as a probable outcome, but Democrats lied through their teeth when they denied it. It was and is completely intended. It is the companies, however, that will be demonized for doing precisely what Democrats hoped they’d do (or, one assumes, the penalty for not supplying health care would have been much higher and any tax on Cadillac plans much lower).  Single payer, here we come.

And you wonder why they kept it hidden so no one could read it until after it passed?

~McQ

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Reconciliation — It’s Alive? (UPDATED – Dead Again?)

Seems my skepticism yesterday was warranted. According to Politico sources, the Senate parliamentarian ruling announced by the GOP yesterday may have been “misinterpreted”:

Senate Republicans caused a major stir Thursday when they told reporters that the parliamentarian had informed them that the Senate bill needed to be signed into law before lawmakers took up a sidecar bill to fix it.

[…]

But according to reporting by POLITICO’s David Rogers, the accounts aren’t accurate and misconstrue what the Senate parliamentarians have said. That is that reconciliation must amend law but this could be done without the Senate bill being enacted first. “It is wholly possible to create law and qualify law before the law is on the books,” said one person familiar with situation.

For example, if the big bill itself amends some Social Security statute, reconciliation could be written to do the same –with changes sought by the House. Then if reconciliation is passed and signed by President Barack Obama after he signs the larger bill, the changes made in reconciliation would prevail.
This jives with what Pulse sources were saying soon after the first wave of stories hit – in essence, don’t take the reported parliamentarian’s declaration to the bank.

If this report is correct (and there are some issues with it explained below), then we are essentially in the “Yes, No” scenario:

Should the parliamentarians decide that the House must pass the Senate bill, but that the president does not have to sign prior to the reconciliation bill being considered, then the House can basically hold the Senate bill hostage while working on the fixes. It’s not entirely clear how long Pelosi could do this (how soon after voting does she have to enroll the bill? What about the ten-day limits re passage/”pocket veto”?). However, it would enable to the House to get a reconciliation bill through the Senate before sending the Senate bill to Obama, thus ensuring that whatever happens during reconciliation doesn’t undermine any Representative’s “yes” vote.

I always thought that this was the most likely scenario, but not being an expert in these matters I couldn’t, and still can’t, say for sure.

Yet, something from the Politico piece strikes me as a bit off, constitutionally speaking. Specifically, this quote (bolded below) doesn’t make any sense:

That is that reconciliation must amend law but this could be done without the Senate bill being enacted first. “It is wholly possible to create law and qualify law before the law is on the books,” said one person familiar with situation.

I am almost certain that this is not correct. The Constitution is pretty clear on this matter:

Every Bill which shall have passed the House of Representatives and the Senate, shall, before it become a Law, be presented to the President of the United States; …

Art. I, Sect. 7 (emphasis added)

Perhaps the anonymous source for Politico was just being careless in choice of words, and what he/she really meant was that a bill does not necessarily have to become law before it is subjected to the reconciliation process. That may be true, and that was part of what the parliamentarians were asked to rule upon. But there simply is no question that a bill, before it can become a “Law,” must be signed by the President.

In any event, provided that the Politico reporting is correct (and I think it may be), then there is still the possibility of reconciliation being used to pass ObamaCare. However, there are still a number of problems.

Bruce broke down the numbers for you this morning, which gives everyone a good sense of what the reconciliation bill, as passed by the Senate, must look like in order to get the Senate bill passed in the House. Again, whether or not the “fixes” required by House members to get their vote will actually survive the Byrd Rule part of the reconciliation process is a huge question. In addition, Republicans will have other means of attacking the bill, such as challenging its long-term budget effect which could scuttle the entire thing. So, not only do the wavering House members need to be assured that the Senate will vote for their fixes in the reconciliation bill, they also have to know that those fixes will survive the process, and that the reconciliation bill as a whole will be capable of being passed under the budgetary constraints peculiar to such legislation. That’s a whole lot of “if’s” that need to be answered before the Senate bill comes to the floor for a vote.

The only thing that is immediately clear in all of this is that Democrats have absolutely zero respect for the Constitution, democratic principles, or this republic. They sure as hell don’t give a damn about Americans. No matter what the parliamentarians rule, I still expect Pelosi and Reid to jam something down our gullets and indignantly demand that we thank them for it.

UPDATE: It seems as though the House leadership agrees with the GOP interpretation of the Senate parliamentarian:

House Speaker Nancy Pelosi (D., Calif.) today acknowledged that the Senate parliamentarian’s ruling precludes the House from passing reconciliation fixes to health-care without first passing the Senate bill. Pelosi told reporters she will do just that:

“The bills that have passed, ours with 220 in the House, theirs with 60 in the Senate, we’ll be acting upon the Senate bill with changes that were in the House bill reflected in the reconciliation. So in order to have the Senate bill be the basis and build upon it with the reconciliation, you have to pass the Senate bill, or else you’re talking about starting from scratch. So we will pass the Senate bill. Once we pass it, the President signs it or doesn’t, it’s – people would rather he waited until the Senate acted, but the Senate Parliamentarian, as you have said, said in order for them to do a reconciliation based on the Senate bill, it must be signed by the President.”

Steny Hoyer offered a similar conclusion:

Separately, on the House floor today, Eric Cantor pressed Steny Hoyer on the issue, asking Hoyer whether it’s his position that the Senate bill “must be signed into law before the Senate can even take up the reconciliation package.”

“I think the gentleman correctly states the Senate parliamentarian’s position,” Hoyer replied.

For those keeping score, we went from “Yes, Yes” to “Yes, No” back to “Yes, Yes” and all the while Pelosi is insisting that ObamaCare will be passed. Soon. Very, very soon. Which probably means that the Slaughter Rule will brought into the game … and I just can’t even fathom how that sort of extra-constitutional procedure will play out. This is getting more confusing than wearing a mirror-suit in a house full of mirrors.

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Reconciliation Dead For Good?

Yesterday it was reported that the House and Senate parliamentarians were asked to rule on what exactly the process needed to be for a reconciliation bill to get passed regarding ObamaCare. As I stated, also yesterday, if the answers to the questions, does the House have to pass the Senate bill and does Pres. Obama have to sign it before the reconciliation bill can be considered, are “Yes, Yes” then ObamaCare is officially dead:

In this scenario, the House would have to trust the Senate to agree to its fixes, that such fixes get through the reconciliation process, and that Obama signs them into law. Meanwhile, a perfectly functional health care law will be on the books which achieves what the Senate Democrats wanted, and what Obama has staked his entire presidency upon. That would require a great deal of faith.

I don’t think the progressive caucus, the Stupak group, or many other Representatives have anywhere near that much faith in the Senate and/or Obama. And if this reporting by Roll Call is accurate, they’re going to need a whole mess of it:

The Senate Parliamentarian has ruled that President Barack Obama must sign Congress’ original health care reform bill before the Senate can act on a companion reconciliation package, senior GOP sources said Thursday.

The Senate Parliamentarian’s Office was responding to questions posed by the Republican leadership. The answers were provided verbally, sources said.

House Democratic leaders have been searching for a way to ensure that any move they make to approve the Senate-passed $871 billion health care reform bill is followed by Senate action on a reconciliation package of adjustments to the original bill. One idea is to have the House and Senate act on reconciliation prior to House action on the Senate’s original health care bill.

Information Republicans say they have received from the Senate Parliamentarian’s Office eliminates that option.

Yes, Yes We Can’t!

[HT: Neo]

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Health Care Reform On The Brink

Although I am on the record as predicting that Congress will get some sort of health care bill to the president’s desk, I am hoping that my prediction is wildly inaccurate. Arguably the most important factor in whether I end up being right or not is the decision being made by the Senate and House parliamentarians:

The White House and Democratic Congressional leaders said Tuesday that they were bracing for a key procedural ruling that could complicate their effort to approve major health care legislation, by requiring President Obama to sign the bill into law before Congress could revise it through an expedited budget process.

An official determination on the matter could come within days from the House and Senate parliamentarians, and could present yet another hurdle for Mr. Obama and Democratic leaders as they try to lock in support from skittish lawmakers in the House.

[…]

The most immediate question seemed to be how parliamentarians would rule on the steps that Democrats must follow. The reconciliation instructions require that committees “report changes in laws” that help meet deficit reduction targets.

Democrats are planning to use budget reconciliation to make the final health care revisions because it circumvents a Republican filibuster in the Senate and can be adopted by a simple majority vote rather than 60-vote supermajority normally required.

Something the parliamentarians need to answer is whether or not the Senate bill, currently sitting in Speaker Pelosi’s office, needs to be either passed by the House and/or signed by the President Obama before the “Reconciliation Bill” can even be considered.

No, No

If the answer to the initial question — does the Senate bill have to pass the House? — is “no,” then the House can get to work drafting the “fixes” they want in the Senate bill, and shaping them to fit within the budgetary confines of the reconciliation process. Since any fix that doesn’t have to do with the budget will be cut from the reconciliation bill, how that bill is drafted will be vitally important to keeping the House “yes” voters together. If, for example, provisions relating to Rep. Stupak’s desire to prevent federal funding of abortion are deemed to be non-budget related, then he and his pro-life group of congressmen will not want to vote for the Senate bill. However, because reconciliation apparently requires that the bill being “fixed” be submitted to the CBO for scoring first, then, in the very least the Senate bill must be passed by the House.

Yes, No

Should the parliamentarians decide that the House must pass the Senate bill, but that the president does not have to sign prior to the reconciliation bill being considered, then the House can basically hold the Senate bill hostage while working on the fixes. It’s not entirely clear how long Pelosi could do this (how soon after voting does she have to enroll the bill? What about the ten-day limits re passage/”pocket veto”?). However, it would enable to the House to get a reconciliation bill through the Senate before sending the Senate bill to Obama, thus ensuring that whatever happens during reconciliation doesn’t undermine any Representative’s “yes” vote.

Yes, Yes

If, instead, the House must both pass the Senate Bill and get it signed by the President before the reconciliation bill can be considered, then health care legislation is likely dead. In this scenario, the House would have to trust the Senate to agree to its fixes, that such fixes get through the reconciliation process, and that Obama signs them into law. Meanwhile, a perfectly functional health care law will be on the books which achieves what the Senate Democrats wanted, and what Obama has staked his entire presidency upon. That would require a great deal of faith.

As I understand it, there are numerous variables in play that could decide which of these scenarios is the winner, so nothing is terribly certain at this point. What is known, is that a favorable parliamentarians’ decision is crucial to ObamaCare becoming law.

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Yes They Can (And Will) — UPDATED

On last night’s podcast, I argued that Democrats in Congress will indeed pass something called “health care reform” even if the bill doesn’t accomplish almost anything they claimed it would. For close to a century, government-controlled health care has been the holy grail of the statist set, and they aren’t about to pass up the best (and perhaps last) opportunity they have to see that goal through. Andy McCarthy admonished Republicans to keep this in mind when counting unhatched Senate and House seats from this Fall’s elections:

Today’s Democrats are controlled by the radical Left, and it is more important to them to execute the permanent transformation of American society than it is to win the upcoming election cycles. They have already factored in losing in November — even losing big. For them, winning big now outweighs that. I think they’re right.

I hear Republicans getting giddy over the fact that “reconciliation,” if it comes to that, is a huge political loser. That’s the wrong way to look at it. The Democratic leadership has already internalized the inevitablility of taking its political lumps. That makes reconciliation truly scary. Since the Dems know they will have to ram this monstrosity through, they figure it might as well be as monstrous as they can get wavering Democrats to go along with. Clipping the leadership’s statist ambitions in order to peel off a few Republicans is not going to work. I’m glad Republicans have held firm, but let’s not be under any illusions about what that means. In the Democrat leadership, we are not dealing with conventional politicians for whom the goal of being reelected is paramount and will rein in their radicalism. They want socialized medicine and all it entails about government control even more than they want to win elections. After all, if the party of government transforms the relationship between the citizen and the state, its power over our lives will be vast even in those cycles when it is not in the majority. This is about power, and there is more to power than winning elections, especially if you’ve calculated that your opposition does not have the gumption to dismantle your ballooning welfare state.

Bruce thinks McCarthy is being overly generous with respect to the courageousness of congress members, and that in the end the House will not have enough votes to pass the Senate bill, and thus start the reconciliation process (which Keith Hennessey describes quite well). Enmity between the two houses of congress, in particular the House’s distrust of the Senate to pass a new bill “fixing” the first bill, may make passage of the first bill impossible. Making the task of passing a reconciliation bill even more herculean are some procedural quirks that potentially allow an infinite series of amendments to be offered during the vote-a-rama process in the Senate, and the great likelihood that much of the bill will violate the Byrd Rule, which negates provisions that do not deal with the budget (for a great explanation of both, once again, visit Mr. Hennessey). To top it all off, if the reconciliation bill increases the long-term budget (more than ten years out), then the whole thing automatically gets scrapped (again, see Hennessey). That’s quite a lot to overcome.

However, I think the Democrats, and especially President Obama, are bound and determined to pass something regardless of the high hurdles to be faced in the process or the eventual political costs. This is Obama’s legacy, after all, and the only thing he’s really spent any time on during his presidency. If there is any way that Congress can pass something resembling a health care bill, they will do it. The Senate has already done it’s job on this score, and voting weaknesses in the House virtually ensure that Nancy Pelosi can wrangle assurances from Harry Reid that the Senate will pass the reconciliation bill. The final version may be swiss cheese, and the Byrd Rule is likely to knock out several provisions that are necessary to get votes (think “Stupak amendment”), but in the end I believe that the Democrats can cobble something together that will garner majority votes in both houses and be sent to the president for his signature. This issue is simply too important to the left to let go.

Something else to keep in mind, with respect to vote counting, is that any Democrat congress member who has decided to “retire” ahead of this Fall’s elections will have no repercussions from voting for either the Senate bill or the reconciliation bill. The seats of these lame-duck congressmen are viewed by Republicans a potential pick-up’s for the next congress, when they should be worried about how the lame ducks will be voting.

In the end, I think that Reid and Pelosi deliver something in the way of a public option with tax hikes and that Obama will declare victory when he signs the bill into law. There’s certainly no virtue in this process, but then, there’s really no virtue left in Washington, so that should come as no surprise.

UPDATE: “The Biden Situation”

According to Norman Ornstein, of AEI, and Robert Dove, former Senate parliamentarian, the unlimited amendment tactic during vote-a-rama may not be all it’s cracked up to be [HT: AllahPundit]:

Should passing health care reform come down to the use of reconciliation — and all signs point that way — Vice President Joseph Biden could play a hugely influential role in determining not only what’s in the bill but whether or not it passes.

Two experts in the arcane rules of the Senate said on Monday that, as president of the Senate, Biden has the capacity not just to overrule any ruling that the parliamentarian may make but also to cut off efforts by Republicans to offer unlimited amendments.

“Ultimately it’s the Vice President of the United States [who has the power over the reconciliation process],” Robert Dove, who served as Senate parliamentarian on and off from 1981-2001, told MSNBC this morning. “It is the decision of the Vice President whether or not to play a role here… And I have seen Vice Presidents play that role in other very important situations… The parliamentarian can only advise. It is the vice president who rules.”

[…]

“The vice president can rule that amendments are dilatory,” Norm Ornstein, a fellow at the American Enterprise Institute and one of the foremost experts on congressional process, told the Huffington Post. “That they are not serious attempts to amend the bill but are designed without substance to obstruct. He can rule them out of order and he can do that on bloc.”

“There are time limits,” Ornstein added. “It is not that they can keep doing it over and over again.”

How ironic that the same man who famously mangled the VP’s constitutional role in the Senate might possibly wield that very power to foist ObamaCare on us. Well, I guess it’s no more ironic than the “Kennedy seat” busting a filibuster-proof majority that was depended upon to deliver Kennedy’s life-long dream of government-run health care.

Just the same, I wouldn’t count on ObamaCare being dead and gone just yet.

Congress: Making A Bad Idea Permanent

You have to hand to Harry Reid. His lack of respect for the Constitution is rather pedestrian by Democrat standards these days, but he is positively the Thomas Alva Edison of inventive ways to flout it:

If ever the people of the United States rise up and fight over passage of Obamacare, Harry Reid must be remembered as the man who sacrificed the dignity of his office for a few pieces of silver. The rules of fair play that have kept the basic integrity of the Republic alive have died with Harry Reid. Reid has slipped in a provision into the health care legislation prohibiting future Congresses from changing any regulations imposed on Americans by the Independent Medicare [note: originally referred to as “medical”] Advisory Boards, which are commonly called the “Death Panels.”

It was Reid leading the Democrats who ignored 200 years of Senate precedents to rule that Senator Sanders could withdraw his amendment while it was being read.

[…]

Section 3403 of Senator Harry Reid’s amendment requires that “it shall not be in order in the Senate or the House of Representatives to consider any bill, resolution, amendment, or conference report that would repeal or otherwise change this subsection.” The good news is that this only applies to one section of the Obamacare legislation. The bad news is that it applies to regulations imposed on doctors and patients by the Independent Medicare Advisory Boards a/k/a the Death Panels.

Section 3403 of Senator Reid’s legislation also states, “Notwithstanding rule XV of the Standing Rules of the Senate, a committee amendment described in subparagraph (A) may include matter not within the jurisdiction of the Committee on Finance if that matter is relevant to a proposal contained in the bill submitted under subsection (c)(3).” In short, it sets up a rule to ignore another Senate rule.

These provisions were pointed by Sen. Jim DeMint on the Senate floor last night:

Meh. It’s an old Constitution anyways, and it’s not like we’ve really been using it. Heck, I’ll bet most people don’t even know what’s in that old rag, and those are just ones in Congress.

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