But there will be a much larger group of people who take a look at the offerings on the exchanges and determine that they are not a good deal for them. The premium shock is very real. Younger and healthier people will see premiums that are 30 to 50 percent higher than premiums in today’s individual market, with deductibles of $2,000 to $2,500 for the typical silver plan, and a very limited number of physicians and hospitals to boot. The very young will see premiums that are 50 to 100 percent above individual market rates. These hurdles are simply too high to overcome. The resentment of the people being asked to shoulder these costs will only build in the coming months as more of them realize that the individual mandate is intended to force them to buy coverage they find completely unattractive.Obamacare’s defenders are feeling better today because the healthcare.gov website is not in total meltdown. But that does not mean the law is out of the political woods. Far from it. Obamacare’s problems have not gone away and are about to become even more apparent to average citizens as more and more of the law’s provisions collide with practical reality.
“I’m all for repeal,” he stipulates, “but it’s there. What do you do with what’s there? . . . .We’ve got to start talking about the reality of the situation.” He says that his approach, acknowledging the reality of the new structures put in place by Obamacare and offering a positive alternative, might be summarized as “repeal, dismantle, and transition to something better.”
The Affordable Care Act Briefing Book | Bankrupting America | Government spending and waste in Washington, DC are bankrupting America and increasing our national debt to nearly $17 trillion.December 9, 2013
If Democrats agree to re-litigate healthcare and focus on just a few problems, like pre-existing conditions and catastrophic medical bills, it\’s possible House Republicans can forego dreams of building a Berlin border wall and deporting Mexicans in numbers equal to about half the population of Texas.
Immigration reform supported by enough House Republicans could yield a real legacy for President Obama, similar to Bill Clinton\’s claiming Republican-enacted welfare reform as his legacy post-HillaryCare. But it would also benefit Republicans. Cooler-headed strategists understand Hispanic antipathy can doom GOP presidential ambitions for years. Older Latinos may be Democratic, but as new generations become middle class, Republicans have a shot at their support—if they can get past strident nativism.
Why Government Institutions Fail to Deliver on Their Promises: The Public Choice Explanation | MercatusDecember 6, 2013
Despite Washington’s recent focus on the disastrous Affordable Care Act website rollout, policymakers are missing what the rollout glitches symbolize: the fundamental flaws that imbue government intervention.
The work of public choice economists such as Nobel laureate James Buchanan, Gordon Tullock, Mancur Olson, and William Niskanen has shown that, despite good intentions and lavish use of taxpayer resources, government solutions are not only unlikely to solve most of our problems—they often make problems worse.
In a report released today, Douglas Holtz-Eakin, former director of the Congressional Budget Office, estimates that H.R. 2300 would save American taxpayers $2.34 trillion in its first decade alone. This is in stark contrast to the budget-busting “Affordable Care Act,” which saddles future generations of Americans with trillions of dollars in additional debt.
Our plan saves those tax dollars without compromising compassionate care. While we begin by repealing Obamacare, mandates and all, we also address the health-care challenges that have been facing our country since long before its implementation. At the heart of each reform is the insistence that patients, families, and doctors make medical decisions — not Washington.
Amazon succeeds because it searches. How to reassure customers that their credit card information is safe? Should Amazon invest in warehouses or not? (Mr. Bezos at first opposed the idea, then changed his mind.) Should the site feature negative product reviews? Mr. Bezos gambled that customers would appreciate the honesty. And so on.
By contrast, the Affordable Care Act is the brainchild of planners, the people who always think they know best—and are always the most shocked when it turns out they don\’t.
The Independent Institute, drawing on the ideas outlined in its landmark book, Priceless: Curing the Healthcare Crisis by John C. Goodman (Senior Fellow, The Independent Institute; President, NCPA), is partnering with the NCPA, which developed the first Contract in 2012, to develop and promote The New Healthcare Contract with America, which identifies the key problems and corresponding solutions that will empower patients, create real competition among healthcare providers, and minimize the distorting role of government in the medical marketplace.
But as Aaron Blake points out, the poll also finds that a plurality don’t expect the law to impact them unfavorably, so perhaps the GOP war of anecdotes has yet to rattle many Americans. Perhaps mindful of this, so far Congressional Dems are sticking to a “keep and fix” message, which frames the choice in roughly the same big picture way the White House is urging.
The law, obviously, could still fail in the long run, which would be a disaster for Dems. But as Brian Beutler spells out, if it does work out over time, the current Dem framing of the argument could very well play out in a way that catches Obamacare’s foes — who are irrevocably convinced the law has already collapsed, and taken the entire liberal project with it – completely off guard.
I think a flat tax credit is far from the most efficient design. One should not abandon competitive bidding and exchanges eagerly. The fundamental reason is that we do not know the right level of tax credit. It cannot be determined administratively. Capretta suggests starting levels “of about $5,000 [for families], and for individuals, about $2,500,” and then indexing them “to grow with some measure of inflation.” Is this exactly how much support should be offered individuals and families for purchase of health insurance? Why should it be identical across markets, which exhibit considerable variation in health care costs and premiums? To what measure of inflation should it be indexed?