American Elephants


The Debate Is Not Over Until The People Say So! by The Elephant's Child

The debate over ObamaCare, the president declared, is over, and he won! ObamaCare is here to stay, and the debate is over. He claimed a grand total of 8 million subscribers, diagnosed Republicans as fear-mongering, spiteful, obstinate, petulant and obstructive., and added that he “would much prefer a constructive conversation with the Republicans about how we get some stuff done.”  Which is a bit of an odd position to take since for the most part, ObamaCare hasn’t even really taken effect yet.

A new Fox News poll says that sixty-one percent of respondents in the poll released Thursday said Obama lies at least some of the time on important issues. Only 15 percent believe the president is completely truthful. Only 31 percent of Democrats said the president is always truthful. It seemed a useful poll in this context.

For the first time in the history of our country, one political party has forced the American people to buy a product devised by that party for their own benefit, that the American people have shown no indication that they wanted. The Democrats defied public opinion, rammed ObamaCare into law using the Cornhusker Kickback, Gator Aid, the Louisiana Purchase and all sorts of unseemly gimmicks to force unwilling Democrats to vote to pass it.

It funnels unprecedented amounts of power and money to Washington D.C. and out of the pockets of everyday Americans. It incentivises employers to refrain from hiring people and to cut hours for millions of their employees. It bans millions of people’s health insurance policies because they don’t conform to the rules designed in the backrooms of Congress. Obama crows over insurance policies, but doctors are so disgusted with the program that they are leaving medicine in droves. Since July 4, 2009, according to Real Clear Politics, 458 polls have been taken on ObamaCare. Twenty have shown Americans liking it, five have shown ties, and 433 (95%) have shown them disliking it. The five most recent polls have shown Americans opposing ObamaCare by double digits. And it hasn’t really started yet!

The president proclaims the debate is over and ObamaCare is here to stay.

Charles Blahous, the director of spending and budget initiative at the Mercatus Center at George Mason University, and a public trustee for Social Security and Medicare, said :

It is quite possible that the ACA is shaping up as the greatest act of fiscal irresponsibility ever committed by federal legislators. Nothing immediately comes to mind as comparable to it. Certainly no tax legislation is, because tax rates rise and fall frequently, such that one Congress’s tax cut can be (and often is) undone by a later tax increase. The same is true for legislation affecting appropriated spending programs. But the ACA is a commitment to permanently subsidize comprehensive health insurance for millions who could not otherwise afford it, which the federal government has no viable plan to finance. Moreover, experience shows that it is very difficult to scale back such spending once large numbers of Americans have been made dependent on it.

This is an expansion of spending commitments that is comparable to enacting Social Security, Medicare or Medicaid. Our biggest financial problems today come from Medicare, Medicaid and Social Security costs rising well beyond original projections. Nobody planned on the Baby Boom generation. The Congressional  Budget Office now estimates that the gross costs of the ACA’s coverage expansion will be $92 billion in FY2015, or about 0.5% of our total GDP of roughly $18 trillion. This far exceeds  the initial costs associated with the entirety of Social Security and Medicaid and is comparable to the startup costs for all original parts of Medicare combined. Only five years after enactment, the ACA will absorb more of our total economic output than Social Security did fully sixteen years after it was enacted. And government programs always, always,  cost more than the estimates.

The ACA was enacted when legislators knew, or should have known, that they were living in a fiscal environment in which such extravagance was unaffordable. Deficits and Debt are far higher today than when other major entitlement programs were created. Baby Boomers are just beginning to turn 65, and their numbers swell exponentially until 2029. The sheer irresponsibility is breathtaking.

The ACA’s “CLASS” long-term care provisions were originally projected to generate $37 billion in net premiums through 2015. CLASS was suspended due to its long-term financial unworkability. That money is not coming in.

The employer/individual mandate penalties were expected to have brought in $12 billion through 2015, $101 billion over the first ten years. Obama has delayed enforcement repeatedly, and they haven’t brought in much of anything. Some ACA advocates are suggesting ditching those mandates altogether, though they were essential to the financing scheme.

The ACA was supposed to be financed in part by cuts to Medicare Advantage, the extremely popular program for seniors. This is typical of government programs. Establish the program, get everybody signed up, then start taking funding out of it to support something else. That was supposed to be $31 billion through FY2015, $128 billion over the first ten years. The White House recently announced that planned cuts will not go into effect after all —probably not till after the election.

We still have the “cost-saving” decisions of the Independent Payment Advisory Board— the 15 unelected bureaucrats who will decide what Medicare will pay for, and what it won’t. The ObamaCare people have always pointed out that most of the costs of health care come in the final years of seniors’ lives, and old people just don’t need such expensive treatment when they have so little time left.  And they are sure that they can reduce costs by just paying providers less—which means good luck finding a doctor.

The great goal of getting those who can’t afford insurance signed up for Medicaid is confronted by recent studies showing that people who do without insurance actually do better than those who are insured by Medicaid.

Charles Blahouse concludes:

When new enrollment figures were released last week, the national discussion focused on whether the ACA is fulfilling its coverage expansion goals. The largely unwritten and more important story, however, is that the ACA is rapidly becoming a colossal fiscal disaster as enrollment proceeds heedless of the concurrent collapse of the law’s financing structure.

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