OBAMACARE IS CONCEPTUALLY FLAWED AND CAN’T BE FIXED

President Obama recently took to the airwaves, smiling enthusiastically and jumping up and down like an immature teenage boy, claiming victory for Obamacare because more than 7 million people registered for coverage on the Obamacare website before the March 31, 2014 deadline. He was obviously trying to mislead the American people into thinking that the number of sign-ups was of great importance. It wasn’t. Just another of the president’s Obamacare lies. The 7 million number was initially set by HHS as a meaningless goal that it thought could be easily achieved and only appeared to be difficult to reach because of the failures of the website. After all, Obamacare previously required the cancellation of the coverage of more than 5 million people, a number that President Obama repeatedly told us was insignificant and only a small percentage of all Americans with healthcare coverage. He had for years promised that Obamacare would give coverage for the more than 30 million previously uninsured. He never tells us the number of people who have or will lose their healthcare coverage as a result of Obamacare.

President Obama and the HHS are deliberately withholding significant information from the American people relating to how many of the 7 million registrants (i) are merely replacing their coverage cancelled for failing to meet Obamacare mandates, (ii) are under the age of 26 and signing up for coverage, as permitted by Obamacare, under their parents’ plans, (iii) are elderly people who are likely to need more expensive care that will lead to further premium increases, (iv) have pre-existing conditions and are receiving insurance coverage, worth up to $2 million per individual and hundreds of billions of dollars in the aggregate, for a small fraction of its true cost that will be passed on by the insurers in the form of premium increases, (v) are young middle class people who do not qualify for subsidies and as a result are required to greatly overpay for their coverage (to enable insurers to limit premium increases for the elderly and people with pre-existing conditions) or (vi) are low-income people of all ages who are receiving a new welfare benefit from the US Government in the form of exceptionally high premium subsidies. They do not care if most of the registrants on the website are disproportionately highly subsidized low-income people. They do not care how much Obamacare is costing the US Government. On the contrary, they obviously want to maximize the government subsidy payments to the insurers to limit premium increases so that they can claim that Obamacare is working.

Obamacare mandates are changing virtually all aspects of the health insurance industry. They are highly complex and extremely difficult to understand. For example, elderly middle class individuals, who are under the age of 65, and not Medicare eligible, and not subject to pre-existing conditions, are being partially relieved (by a Obamacare mandated formula) of the premium cost increases even if they do not qualify for a Obamacare subsidy. However, they are still required to pay increased and excessive healthcare insurance costs to help pay for the higher premiums necessitated by the exclusion of pre-existing conditions from consideration and the enhanced policy benefits mandated by Obamacare, most of which they do not benefit from. Obamacare is basically a scheme proposed by President Obama and Democrat entitlementists to redistribute income from the middle class and high income people to the poor and low-income folks to create income equality and gain votes for liberal Democrats.

President Obama continues to fraudulently mislead young and elderly middle class individuals about their Obamacare policy costs. He has recently claimed that a Obamacare exchange policy premium costs no more than the monthly cost of a cable or cell phone bill. This is an outrageous lie with respect to the healthy young middle class individuals whose sign-ups are needed to prevent Obamacare premiums from skyrocketing. They are facing aggregate premiums, deductibles and co-pays that make their aggregate health insurance costs many times (i) the fair market rate or (ii) the amount of their cable or cell phone bill.

President Obama knows that his claims about cost are true only for the low-income taxpayers who are eligible for very large premium subsidies of 80% or more. He also knows that it will cost the US Government, the provider of the subsidies, hundreds of billions of dollars annually. As a result, to avoid federal deficits and further National Debt increases, middle class taxpayers, who pay a majority of all income taxes, will inevitably face the added Obamacare burden of paying tax increases to pay for a large portion of the Obamacare subsidies for low-income taxpayers (most of whom pay no federal income taxes). The result is that the middle class is being sucker punched twice. They are targeted to pay greatly excessive healthcare costs for their own coverage and will also pay for the inevitable income tax increases the government will need to pay for the hundreds of billions of dollars of subsidies to reimburse most of the premium costs of low-income folks and the added Medicaid costs for the poor.

President Obama and the Democrats are now acknowledging that Obamacare has flaws that need to be fixed. However, they are concealing the fact that Obamacare is conceptually flawed and can’t be fixed. Each of the 38 changes made by President Obama were designed to give relief from Obamacare to his political supporters or to prevent voters from finding out how destructive Obamacare is to businesses and the middle class.

 

President Obama and the HHS are continuing their attempts to mislead voters about Obamacare for political reasons. They have proudly and disingenuously stated (to make it look like the total number of people registering is of great importance) that Obamacare exchange registrations are accelerating. They are running ads using celebrities, who are probably clueless about and do not discuss the merits of Obamacare, to try to induce people to sign up for Obamacare.

To fool the voters for purposes of the mid-term Congressional elections, President Obama and the HHS have by fiat, and in violation of the Obamacare statute (under a highly questionable claim that they are authorized to do so), postponed the employer mandate. By doing so, President Obama is merely postponing the loss of full-time jobs and employer-provided healthcare coverage that will decimate the middle class. Zeke Emanuel (one of the draftsmen and now a spokesman for Obamacare) has confirmed that the employer mandate will likely cause (i) employers to stop offering healthcare coverage and (ii) many millions of employees to lose their employer paid healthcare coverage. President Obama also doesn’t care that the employer mandate will cause the conversion of millions of full-time, tax-paying jobs into part-time jobs. He ridiculously stated that many individuals will benefit from working fewer hours. Why work to earn one’s healthcare coverage if you can become eligible for Obamacare subsidies and other welfare benefits? President Obama and the HHS have also failed to disclose how many people have been illegally permitted to temporarily renew or extend an existing policy that does not meet the Obamacare mandates.

President Obamas actions make it clear that he doesn’t care that Obamacare is destructive to the middle class. He believes that he can continue to fool a large number of them (many of whom are uninformed liberals who trust the president and continue to be misled by his empty promises of hope and change) by disingenuously stating time-and-again that he cares about the middle class. He is an entitlementist who believes that he can gain net votes for Democrats from the poor and low-income voters by adding Obamacare subsidies to the long list of welfare benefits that have been greatly expanded during his presidency. Obamacare threatens to narrow the discretionary income spread between the middle class and low-income people and destroy the work ethic that has since our founding days made American capitalism the envy of individuals around the globe. </p

Despite the large premium subsidies, most low-income people will be harmed, not helped by Obamacare. President Obama can induce them to pay the highly subsidized premiums, but doesn’t tell them about the substantial deductibles and co-pays included under Obamacare plans. When they incur a sickness or injury and discover that the insurance coverage will not apply until they have paid the deductibles out of pocket, many of them will have committed for a treatment they cannot afford. Many of them will simply stop paying the Obamacare premiums. They will also suffer along with everyone else from the declining quality and availability of healthcare services. They are discovering that they may not be able to use their personal doctor or the hospital of their choice and may have long delays before getting treated. Healthcare availability is only going to get worse as fewer doctors participate in Obamacare insurance programs and people with Obamacare coverage take advantage of services that are provided without deductibles, such as preventive care. They may lose full-time jobs and face reduced working hours per week. They will also suffer from the negative affects Obamacare will have on the American economy.

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