Saturday, November 16, 2013

Obamacare Unfolding Like a Greek Tragedy


From Mediaite:
A great tragedy is unfolding within Democratic ranks. The party and their leader, PresidentBarack Obama, are scrambling to mitigate the damage the Affordable Care Act is doing to the Democratic brand. In their rush, they are striking glancing blows against a law which is already teetering on its unsound foundations. In a Euripidean twist, it is Democrats, not Republicans, who are meting out potentially fatal blows to the project which had once represented their greatest hopes.  
Passed along party lines by appealing to methods unbecoming of the democratic process, the president secured his signature achievement in 2010. It was all downhill from there. A scandalous number of waivers, carve-outs and bailouts later, the ACA went into effect in October amid the self-flagellating protests of Republicans. Defeated at last, the law’s opponents stepped aside. Without a distraction, the press and the public focused on the effects of the law itself. What they saw was grotesque. 
As the waves of policy cancellations continued, liberals and Democratic partisans atonally cheered the development. True to form, they celebrated the dismantling of the individual insurance market. The “incorrect promise,” in the parlance of the New York Times editorial board, that the president had made the nation was a necessary fiction and, they told themselves, a forgivable one. It was required in order to sell a skittish public, married to the quaint idea that they could determine what was best for them and their families, on a program that would rob them of this injurious autonomy. 
In spite of their celebrations, the clamorous public never quieted. The scale of the political catastrophe became apparent in poll after poll. Young voters told Quinnipiac pollsters that they trust congressional Republicans over President Obama on who would best handle health care by 5 points. 52 percent of voters viewed Obama as untrustworthy. A majority of Americans told Fox News pollsters they believe the president intentionally misled the public. 
Alarm evolved into panic. Nervous Democrats began to craft plans that would reverse the politically disastrous effects of the ACA’s implementation. Stalwart Democrats in the Senate like Sens. Mary Landrieu (D-LA) and Mark Udall (D-CO) crafted plans that would, in varying degrees, undermine the financial stability of the law by allowing those who lost their plans to regain them even though they knew that the long-term consequences of these “fixes” could do irreversible damage to the ACA. 
National Journal’s Ron Brownstein summarized the effects of “keep your plan” legislative fixes succinctly: 
Because the individual market now largely excludes the sick (through rules such as denying coverage for preexisting conditions), the relatively modest number of Americans who use it tend to be healthy. If they are allowed to remain outside the new system, the more comprehensive policies sold on the exchanges could tilt too heavily toward the old and sick. And that, notes Jonathan Gruber, a Massachusetts Institute of Technology economist, “would generate a huge [premium] rate shock in 2015” that could further discourage the healthy from enrolling and risk a fatal downward spiral. 
Democrats are fully aware of how their “fixes” are potentially fatal for the most expansive liberal reform in generations. They do not care. The political threat is that grave. Initially, they warned the president that he must do something to stop the bleeding. 

Let's put it this way guys:

Thus far all the "fixes" that are proposed will lead to the destruction of the plan, in my opinion.

The Obama fix essentially makes the plan unworkable for the insurance companies, creating the problem that the plans they would have to issue would not be legal according to the law. Therefore, if there were any legal disputes arising from ANY of the plans (and there always are) the insurance companies would not have a leg to stand on in court, as the plans they issued would be deemed illegal at the outset.

Additionally, the Upton bill will make Obamacare unworkable for the insurance companies, because it will mean the only people who will be getting insured under the ACA will be very sick people, and that will not support the system.

And finally, the bill the Dems want to pass will not do anything really (it will just appear to be a response), and the same problem will arise for the insurance companies.

So maybe Obamacare has not totally collapse yet, but...