Saturday, September 28, 2013
October I and ObamaCare Will Soon Be Us: ObamaCare is Destined to Fail
October 1 is Coming: ObamaCare Will Fail Most of ObamaCare is effective on October 1. The House Republicans are not going to be able to stop it this year. They might trim it a little. Maybe the medical devices tax will be rescinded and the individual mandate postponed a year, but the Republicans lack the political power to repeal the entire bill. ObamaCare will fail. Not today, or tomorrow; not on October 2 or within six months or a year, but it will fail. The current startup blips will not stop it, but basic economics will. Congress in 2100 pages can enact anything it wishes, and the Supreme Court can apply its imprimatur, but they cannot repeal the laws of the marketplace. The community organizer is spending billions of dollars organizing a campaign of “navigators” to sign up Americans, especially the youth, Hispanics and African Americans, but not a cent to increase the number of medical students, interns, or residents. The community organizer is even enlisting librarians in the campaign. To the contrary, the economics of ObamaCare are driving private physicians into early retirement. Many doctors are dropping Medicaid; yet the government is relying on Medicaid to provide medical care to additional millions of Americans. ObamaCare will fail because of a lack of doctors. ObamaCare will fail because the taxes cannot sustain the subsidies. The economics of ObamaCare were sold to Congress on false assumptions. Yet, as the subsidies become unsustainable, we need to remember that when countries reduce fuel or food subsidies, riots and civil disorder can break out. ObamaCare will fail once Americans discover the initial “low” premiums hide a substantial drop in coverage, substantially shrunken provider networks, and large deductibles. You may well be unable to keep the insurance and doctors you currently have. ObamaCare will fail because Congress, ignorant of economics and medical care, believes it can restructure 1/6 of the economy. The private health insurers understand the economics of ObamaCare. Aetna, Cigna, and United Healthcare are avoiding most of the health insurance exchanges for personal health insurance. The economics of ObamaCare are premised are transferring billions from the private sector through a multitude of taxes and signing up millions of young Americans who will be paying more into the funds than they will claim in benefits. The young will become the seniors who draw on health care. The shrinking work force will not be able to subsidize them. ObamaCare has a built in oxymoron. It professes to lower insurance costs, but it imposes a tax on health insurance policies. Imposing a tax on a product will not lower its cost. ObamaCare will fail because it is transforming the workplace into one of part time workers for whom an employer does not have to provide health insurance. ObamaCare will fail because employers are cutting jobs. Even the great Cleveland Clinic Foundation is laying off employees because of ObamaCare. The private economy will be unable to sustain ObamaCare. ObamaCare will fail because companies Like IBM, Time Warner, and Walgreens are dumping retirees into the health exchanges. ObamaCare will fail because it failed to learn the lessons from RomneyCare in Massachusetts. ObamaCare will fail because fraud costs, engendered by the lack of documentation of proof of need, will drive up the costs of ObamaCare, The federal government recognizes the great risk of fraud, but its primary goal is boosting enrollment. ObamaCare will fail because it does not address one of the drivers behind escalating medical costs – trial lawyers. ObamaCare has already failed in one sense. It may cover only ½ to 2/3 of the 48 million Americans who lack medical coverage.