American Elephants


The ObamaCare Battle Has Just Begun. by The Elephant's Child

On this one, I’m with Justice Kennedy. I cannot see the difference  between overthrowing the mandate, and then  doing the same thing and calling it a “tax.” Roberts rejected the mandate, then wrote a new law himself. A big mistake.

I am far more concerned, however, with what a remarkably bad law the Affordable Care Act, (with the Orwellian name) is. It is not affordable, and is going to be a huge tax increase on the middle class. Justice Kennedy writing the dissent said:

What is absolutely clear, affirmed by the text of the 1789 Constitution, by the Tenth Amendment ratified in 1791, and by innumerable cases of ours in the 220 years since, is that there are structural limits upon federal power — upon what it can prescribe with respect to private conduct, and upon what it can impose upon the sovereign States.  Whatever may be the conceptual limits upon the Commerce Clause and upon the power to tax and spend, the cannot be such as will enable the Federal Government to regulate all private conduct and to compel the States to function as administrators of federal programs.

The Supreme Court is upholding as a tax something that the Congress and the President swore was not a tax —allowing them to enact as a tax something that if it had been presented as a tax would never have passed Congress.

I don’t know if people are assuming that they are going to get free health care. I think some are. All those formerly uninsured people are supposed to be funneled into Medicaid, but we are already short over 50,000 physicians, with more doctors leaving  daily. I know four who have departed recently. One went to Africa, one to Montana, one simply vanished and one went to work for the Diabetes Foundation, and I know a couple who do not accept insurance at all. Our Medical Schools are unprepared to turn out significantly more doctors, which means that emergency room use will go up significantly, increasing costs.

The tax on medical devices (everything from stents and catheters to wheelchairs and diagnostic machines) is sending some companies out of the country, some are forced into massive layoffs, and some are just cutting back.  There will be significantly less innovation. Drug companies are already moving their labs abroad because of excessive regulation and long timeline for drug approvals.

The ruling was a real surprise. Opinion was very much expecting the law to be overturned. Intrade bets were over 70% that the law would be struck down. As the ruling was announced, the stock market dropped, and Mitt Romney raised $300,000 in the first hour, and is up over a million on the day.

The new law will insure more Americans, it will still fall far short of universal coverage. It is estimated that by 2019 there will still be 21 million uninsured.  The legislation will cost far more than advertised, more than $2.7 trillion over 10 years with full implementation, and will add more than $823 billion to the national debt in the first ten years. Taxes will increase by more than $569 billion between now and 2019, and the burden it places on business will significantly reduce economic growth and employment. Care will undoubtedly be rationed, for there won’t be enough doctors. As expenses grow, through the system rationing will be general.

Under the guise of implementing the law, the IRS has announced it will impose a tax of up to $3000 per worker on employers whom Congress has not authorized a tax. Yet if the IRS doesn’t impose the tax, the whole law could collapse.

Credits are available only in states that create insurance exchanges themselves. The federal government might create exchanges in states that decline, but the government cannot offer credits through its own exchanges. If there are no credits, there is nothing to trigger that $3,000 tax.

The way to ge rid of this deeply troubling piece of legislation is to get rid of Obama, and elect a Republican Senate. ObamaCare is very unpopular, and as people learn ‘what is in it’ it is sure to become even more unpopular. The fight will not be easy. Have courage.


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