Citizen Link

Law of Economics Wreaking Havoc on Health Care Law

http://www.citizenlink.com/2010/10/law-of-economics-wreaking-havoc-on-health-care-law/
Posted by Catherine Snow


The utopian promises made by President Obama about the health care overhaul are proving –rapidly – to be everything but what was pledged.

The U.S. Department of Health and Human Services (HHS) recently granted 30 large companies – including McDonald’s – special waivers from adhering to certain mandates in the health care law. Positioned by HHS as a step to provide “continuous coverage,” policy watchers call it a move to avoid nearly one million workers from being left without coverage – right before the election.

Philip Klein wrote today on The American Spectator:

“Yet by granting waivers to avert PR nightmares, like the news of McDonald’s dropping coverage, it also adds another disturbing element to the ObamaCare regime. Those companies with the best access and lobbyists are in the best position to be granted a waiver. Bureaucrats can choose to apply a different set of rules to different businesses, and in some cases those rules can determine whether a given business survives. Thus, the waivers themselves are another example of the arbitrary nature of government power.”

MORE CRACKS IN THE LAW

In today’s commentary, “Congress Can’t Repeal Economics,” author and FOX Business Network host John Stossel aptly pointed out that the laws of economics have “struck back.”

“Health insurers Wellpoint, Cigna, Aetna, Humana, and CoventryOne will stop writing policies for all children. Why? Because Obamacare requires that they insure already sick children for the same price as well children.

“That sounds compassionate, but—in case Obamacare fanatics haven’t noticed—sick children need more medical care. Insurance is about risk, and already sick children are 100 percent certain to be sick when their coverage begins. So if the government mandates that insurance companies cover sick children at the lower well-children price, insurers will quit the market rather than sandbag their shareholders. This is not callousness—it’s fiduciary responsibility. Insurance companies are not charities.

“So, thanks to the compassionate Congress and president, parents of sick children will be saved from expensive insurance—by being unable to obtain any insurance! That’s how government compassion works.

“In 2014, the same rule will kick in for adults. You now know what to expect.”

UTOPIA UNRAVELS

After signing health care into law on March 25, Obama went on to chastise Republicans, conservatives and Tea Party participants:

“From this day forward, all of the cynics, all the naysayers – they’re going to have to confront the reality of what this reform is and what it isn’t… this isn’t a government takeover of our health care system.

“They’ll see that if Americans like their doctor, they’ll be keeping their doctor. You like your plan? You’ll be keeping your plan. No one is taking that away from you…”

However, not every liberal agreed.

Democrat pollsters Patrick H. Caddell and Douglas E. Schoen predicted the Nov. 2 fallout:

“Bluntly put, this is the political reality: First, the battle for public opinion has been lost. Comprehensive health care has been lost. If it fails, as appears possible, Democrats will face the brunt of the electorate’s reaction. If it passes, however, Democrats will face a far greater calamitous reaction at the polls. Wishing, praying or pretending will not change these outcomes.”

FOR MORE INFORMATION

Read John Stossel’s article, “Congress Can’t Repeal Economics.”
http://reason.com/archives/2010/10/07/congress-cant-repeal-economics