Affordable Care Act: Trouble Ahead

 

There is considerable news and events surrounding the Affordable Care Act in recent months and now politics are rising to the occasion. However, the program, which passed under dicey circumstance as part of budget reconciliation, and no opposition support, has become very unpopular.

In about seven weeks time, people are suppose to sign up for health insurance through the various insurance exchanges. Many of them are not fully set up and there are great concerns information provided such social security numbers will not be secure.

I am no health expert and I confess I do not understand the nuances of the ACA. I am like million of American whose exposure to the health care system has been for employer to provide a health insurance policy- the cost is split between the employer and employee-and use it when getting medical treatment. That is all in the past now.

The purpose of the ACA is to be a transition process to a government run single-payer provider system. The goal is to eliminate employer-based private insurance in the long run, set prices for care and services and put everyone under the control, power and mercy of the government. I have no doubt as to the long-range objective. I can also say, I do not know if that is good or bad. My instincts say bad, probably very bad.

The secondary purpose of the ACA was to create a right for millions, a new class of people, to have government provide health care, though the incredible expansion of Medicaid and tax subsidies. Once enough are dependent, it will be easier to take over the entire process.  

However, it is not going so well and there is considerable evidence that changes are going to be difficult and not as beneficially promised. 

In recent weeks, the Administration has had to delay several important provisions of the law. First, it announced a one-year delay of the "employer mandate," requiring companies with 50 or more employees to provide affordable coverage to full-time workers. This unilateral delay action is not authorized in the law. The Administration has simply done what they seem to frequently do and that is do what they want, not what the law is. There will be a challenge in courts on this matter as soon as it is ripe for action.

More brazenly and irresponsibility the Administration has decided that those applicants using the “exchanges,” to secure insurance and subsidies would be taken at their word when providing information about their workplace coverage and income.  This has fraud written all over it. In fact, it is an invitation for fraud, stealing of taxpayer dollars.  In another matter, the Administration also waived a requirement that capped out-of-pocket spending for people with certain kinds of employer-based coverage. So, the claim of less costs to consumers are bogus.

Then there was the Congressional exemption debacle. Included in the provisions of the law, Congressmen and their staff have weaseled out special treatment. Hypocrisy, at its finest level. Small business, screw them, they have to comply. Congress is above it.

The Administration says everything is on schedule for implementation. There will be some bumps along the way, but everything is fine. Their actions say otherwise. All the delays are aimed at trying to damped anger before the 2014 elections. Changing the rules, ignoring the law is all part of the process.

Many conservatives want to stop the implementation of the ACA by “defunding” it. A fool’s errand. Mr. Obama is never going to make any arrangement that prevents the full force of the program to be inflicted on the public, no matter what the consequences, the dislocation or hardship it causes or its cost. Even if it does not work, is a “train wreck”, it does not matter. The goal moves forward.

In times gone way by, the leaders of the country would try to address the shortcoming of the law, make improvements, changes, accommodations. That also is not going to happen. Republicans have no interest in trying to fix Obamacare and Mr. Obama has alienated his opposition on this issue to the point of complete distrust. Democrats own it and can reap all the glory of its implementation.

Unfortunately, what this all means is more part-time workers, more employers dropping coverage, higher costs, less choice, more government borrowing to fund the program, more fraud in the system, and more reliance on the government.

This is not going to end well.