Free Markets, Free People

ObamaCare

ObamaCare slapped by reality … again

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.

~McQ

ObamaCare and the Big Lie

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”.

~McQ

Gallup says only 4% “newly insured”

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 …

~McQ

A doctor’s lament will become a patient’s nightmare

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.

Sincerely yours,

Dr. Marlin Gill of Decatur, Alabama

This is the face of government run healthcare.

~McQ

Imperial White House cancels Medicare Advantage cuts to help Dems in mid-terms

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?

~McQ

Observations: The QandO Podcast for 06 Apr 14

This week, Michael and Dale talk about Brendan Eich and Obamacare.

The podcast can be found on Stitcher here. Please remember the feed may take a couple of hours to update after this is first posted.

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 Stitcher. And, of course, for you newsreader subscriber types, our podcast RSS Feed is here.

Another reason you should never believe a thing this administration says

Because, as we’ve learned over the years, it’s likely either spin, just not true or both.

For instance, we have the President claiming victory for ObamaCare because it has 7.1 million enrollments.  Note the word – “enrollments”:

‘The goal we’ve set for ourselves – that no American should go without the health care they need … is achievable,’ Obama declared.

The president took no questions from reporters, but celebrated the end of a rocky six-month open-enrollment period by taking pot shots at Republicans who have opposed the law from the beginning as a government-run seizure of one-seventh of the U.S. economy.

‘The debate over repealing this law is over,’ he insisted. ‘The Affordable Care Act is here to stay.’

And, as is usual with this man, he simply declared he’d won and simply threw out “facts” that haven’t at all proven true. Essentially lies in a bigger lie:

‘“The bottom line is this,’ said Obama: ‘The share of Americans with insurance is up, and the growth in the cost of insurance is down. There’s no good reason to go back.’

Of course the “share of Americans” with insurance isn’t up (over 7 million lost their insurance when their plans didn’t qualify under ObamaCare) and costs are certainly not “down”.

Jay “Baghdad Bob” Carney took it from there (Carney is a perfect name for the position, he’s like a carnival barker):

‘At midnight last night we surpassed everyone’s expectations,’ he boasted, ‘at least everyone in this room.’

While he took great pains to emphasize that the total would grow – saying ‘we’re still waiting on data from state exchanges’ – he dodged tough questions about other statistics that reporters thought he should have had at the ready.

Those numbers included how many Americans have paid for their insurance policies, and are actually insured. Also, he had no answer to the thorny question of how few signups represented people who had no insurance before the Affordable Care Act took effect.

But as usual, when ever they drop something like this in a news cycle, the devil is in the details.  For instance, an unpublished RAND study that suggests that relatively speaking, very few of the enrollees were previously uninsured:

The unpublished RAND study – only the Los Angeles Times has seen it – found that just 23 per cent of new enrollees had no insurance before signing up.

And of those newly insured Americans, just 53 per cent have paid their first month’s premiums.

If those numbers hold, the actual net gain of paid policies among Americans who lacked medical insurance in the pre-Obamacare days would be just 858,298.

So effectively, assuming the numbers are correct, less than a million are newly insured.  And, as we’ve read in the past, most of them are Medicaid subscribers.

In other words, we’ve gone through all this hell, all this disruption, the higher costs, the lesser insurance plans, the IRS enforcement, etc. just to enroll 858,298 people – most of whom have ended up on a program that existed prior to this atrocity.

Perhaps the biggest laugh line of all, however, comes from David Axelrod, who declared that ObamaCare was totally going to change “the attitude that government can’t do anything“.  Of course he only felt comfortable saying that on MSNBC.  One can certainly understand why.

Meanwhile, for the most part, the RAND study goes unpublished and, for the most part, unexamined.  The King has declared victory – the big lie has been established – debate over.

~McQ

Observations: The QandO Podcast for 30 Mar 14

This week, Bruce, Michael and Dale talk about arresting climate change deniers, voter fraud, and Obamacare.

The podcast can be found on Stitcher here. Please remember the feed may take a couple of hours to update after this is first posted.

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 Stitcher. And, of course, for you newsreader subscriber types, our podcast RSS Feed is here.

Discounting human nature

One of the most ironic and, if it weren’t so serious, amusing aspects of central planners is how they come to the conclusion that their plan – despite thousands of years of human nature – will manage to overcome human nature.  What I mean by that akward sentence is they believe they can retrain us to like what they’ll make us do.  Screw human nature.  Screw the laws of economics.  Screw just about every immutable law of nature.  This crap sounded great in the beer haze of the dormitory among their liberal friends.

It’s a correlary of the “the only reason socialism hasn’t worked is we haven’t tried it my way” belief.  And I do mean “belief”.  An act of faith.  More underpants gnomes.

The case in point?  Megan McArdle brings it to us:

In December, I predicted that “doc shock” was going to be a major problem for the U.S. health-care overhaul, as people found out that the narrow networks insurers use to keep premiums low often don’t cover the top-notch doctors you’d like to see if you get really sick:

“If narrow networks could give everyone in the country access to health-care outcomes no worse than 90 percent as good as the folks with the best doctors at 75 percent of the price we’d pay for broader networks, the health-care wonks would jump on that deal as an unbelievable bargain. But I think it’s pretty clear that average folks don’t think like health-care wonks.

So what does ObamaCare do?  Force people into narrow networks despite it being clear to anyone with the IQ of a turnip and a couple of years observing how humans do things, that narrow networks are going to fail.

“So even if narrow networks actually were better, people would resist them. And they’ll fight with every fiber of their being when you tell them to take their kid with leukemia to a community hospital rather than the top-notch children’s hospital nearby. Expect the fight over doc shock to be bitter and long — and to end when insurers cave and start adding pricey doctors back to their networks.”

That’s right … you’re relegated to whatever backwater network of care the particular insurance company you’ve been forced to buy from (or pay a tax too if you prefer) has contracted with.  Want world-class care for your child?  Tough beans.  See your doc at the community hospital instead.

So what has happened?  Well exactly what happened before when something like this was tried:

However much good, sound policy sense narrow networks might make, they are political poison. Regulators and politicians are going to find it very hard to withstand the appeals of constituents who have been restricted to the bargain basement of our nation’s health-care system. I simply don’t think they’ll be able to stand it for very long. This is basically what happened to the managed-care revolution that held down cost growth in the mid-1990s — people in those plans complained bitterly, in their capacity as both voters and employees. A combination of legal and market pressure forced insurers to open up their networks and approve more treatments. And then costs started rising again. As people begin using their Obamacare policies and start running into restrictions, the same sort of pressure will begin to mount.

But did our estwhile leaders learn anything from managed care’s failure?

Nah.

Because, you know, they weren’t in charge at the time and besides, human nature is just overrated.

So, as with every other aspect of this nonsense, watch Obama do what is necessary to ensure the fewest number of people possible are hurt by this … until after midterms, at least and 2016 if Mr. “I can do whatever I want” can swing it.

~McQ

ObamaCare: you wonder how much the government can screw up something?

Well the hits keep on coming with this atrocity of a law known as the Affordable Care Act, aka ObamaCare.  More and more negative nonsense keeps emerging as we get deeper and deeper into its implementation:

In his State of the Union address, President Obama urged Congress to “give America a raise.” Well, it turns out that Obama is giving America a $70 billion annual pay cut, courtesy of Obamacare.

That is the overlooked nugget in the new Congressional Budget Office report detailing the economic costs of Obamacare. While much attention has been paid to the report’s finding that Obamacare will reduce employment by as much as 2.5 million workers, buried on page 117 (Appendix C) is this bombshell: “CBO estimates that the ACA will cause a reduction of roughly 1 percent in aggregate labor compensation over the 2017-2024 period, compared with what it would have been otherwise.”

Translation: Obamacare means a 1 percent pay cut for American workers.

How much does that come to? Since wages and salaries were about $6.85 trillion in 2012 and are expected to exceed $7 trillion in 2013 and 2014, a 1 percent reduction in compensation is going to cost American workers at least $70 billion a year in lost wages.

It gets worse. Most of that $70 billion in lost wages will come from the paychecks of working-class Americans — those who can afford it least. That’s because Obamacare is a tax on work that will affect lower- and middle-income workers who depend on government subsidies for health coverage. The subsidies Obamacare provides depend on income. If your income goes up, your subsidies go down. This means Obamacare effectively traps people in lower-income jobs by imposing an additional tax on every dollar of additional income they earn. Working hard to earn a promotion or get a raise, or taking on additional part-time work — all the things people do to pursue the American Dream — are discouraged by Obamacare. As Keith Hennessey, former chairman of the White House National Economic Council, explains it, “Obamacare punishes additional work, education, job training and professional advancement, anything that generates additional income for those trying to climb into the middle class.”

Emphasis mine.  Obamacare provides a disincentive to succeed (as do the majority of government welfare programs).  And what is the old saying?  If you want more of a behavior, reward it.  Want less?  Tax it.

The new twist?  They then subsidize the cost when they’ve knocked the victim’s income down enough to make insurance unaffordable.

Meanwhile Congressional Democrats and the administration are agitating for a raise in the minimum wage.  They take it away with one hand, try to ignore the fact that they’ve done so and demonize the GOP because they’re not pro-minimum wage (or said another way, they actually understand the economic impact of a minimum wage).

If ever there was a picture beside the definition of “dysfunctional government”, it would be this administration’s along with Congressional Democrats.

And beside the definition of “punching bag?”  The GOP.

~McQ