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White House Sacks the Treasury in the Name of Corporate Welfare

in Economic Liberty, Healthcare, Liberator Online, News You Can Use, Taxes by Alice Salles Comments are off

White House Sacks the Treasury in the Name of Corporate Welfare

This article was featured in our weekly newsletter, the Liberator Online. To receive it in your inbox, sign up here.

Friday, one day before the President’s day holiday weekend, the Barack Obama Administration announced that $7.7 billion of taxpayer dollars would be allocated to Affordable Care Act insurers through the law’s reinsurance program.

From the Americans for Tax Reform website:

“For 2015 Obamacare reinsurance, the administration will pay out $6 billion raised from a fee on private health insurance and an additional $1.7 billion that under federal law belongs to the Treasury department.”

Seal According to pro-taxpayer organization, at least $1.7 billion of the $7.7 being used to cover insurers is being funneled illegally.

Doug Badger of the Galen Institute explains that ACA’s reinsurance program works by silently taxing every individual in America with health insurance. In 2015 and 2016, each individual with insurance is being allegedly taxed a total of $107. According to Badger, the program is designed to “prop up insurers that have agreed to sell Obamacare policies in the individual market.”

While the administration continues to claim that ACA is working, insurers that participate are losing money. But since the reinsurance program exists to cover the losses of the insurers, the administration seems to think keeping corporations happy with the deal is more important than following the law.

With the failure of the system, and with a growing number of consumers referring to alternative methods to have access to care, the administration is having to get creative.

According to the New York Post, not one dollar out of the $7.7 billion being promised to insurers should be taken from the Treasury under ACA law.

From the New York Post:

“The law states a fixed share ‘shall be deposited into the general fund of the Treasury of the United States and may not be used’ to offset insurance companies’ losses.

But the administration gave all of it to the insurance companies last year, and got away with that heist. So now they’re trying it again.”

While the administration projected it would be raising $12 billion for the ACA reinsurance program in 2014, it was $2 billion short. In order to handle the situation, the administration decided to keep the money from the Treasury, using it instead to hand it over to the participating companies.

The administration isn’t a stranger to this type of move. According to the House Energy and Commerce Committee, at least $8.5 billion in taxpayer money has already been illegally funneled to ACA’s corporate welfare programs.

Another initiative designed to shield insurers enshrined in ACA also seeks to secure the investment of insurers. The initiative is known as the Risk Corridor program, and it has also been tied to scandals in the past.

In 2014, insurers requested $2.87 billion in “risk corridors” payments, but the administration only offered 12.6 percent of that value.

The risk corridor program works by redistributing funds from insurers that make money with the Obamacare exchange to insurers that don’t. Not knowing how sick their customers were going to be due to the new healthcare law and its mandates, insurers were not being able to set premiums realistically, making it hard for companies to turn a profit.

Despite falling short on the risk corridor payments, the administration decided to bail out insurers that weren’t making money off the exchanges last year. ACA chief Andy Slavitt, who’s also the former Vice-President for United Health, made the announcement in December of 2015, saying the federal government was going to bail out insurers and offer them the amount they had previously asked. Later, however, Congress blocked the $2.5 billion “risk corridor” payment. The effort was championed by several conservative and libertarian organizations that came together to urge Congress to act.

If nothing is done this time around, taxpayers will have to foot the bill and cover the $7.7 billion the administration has vowed

ACA’s Bureaucratic Requirements Force Patients to Lose Access to Care

in Economic Liberty, Healthcare, Liberator Online, News You Can Use by Alice Salles Comments are off

 ACA’s Bureaucratic Requirements Force Patients to Lose Access to Care

This article was featured in our weekly newsletter, the Liberator Online. To receive it in your inbox, sign up here.

The Affordable Care Act has become a joke among conservatives and libertarians.

Since the passing of the law, mandates concerning enrollment requirements pushed the cost of health care up, forcing countless to not only find themselves uncovered, but also unable to have access to the care they had before Obamacare.

DoctorWhile the overregulation of health care in America is nothing new, ACA accelerated a process that was well under way before President Barack Obama took office. Unfortunately, officials didn’t pay attention to the market signals. What the current administration decided to do instead was to focus on pushing laws based on hopes and aspirations, ignoring the potential consequences.

The story of Walt Whitlow is the perfect example of why politicians should always consider the short and long-term consequences of their policies.

According to the Associated Press, Whitlow was under treatment for cancer when he learned that his financial assistance had gotten slashed under ACA. With a premium costing four times what it cost prior to the passing of the new health care law, his deductible went from $900 to $4,600.

Patient Ana Granado also suffered due to the bureaucratic nature of the law.

Granado had undergone a breast cancer surgery and was waiting to undergo breast reconstruction procedures when she was notified that her coverage had been canceled. Under ACA’s new rules, her immigration status became an issue, which forced her insurer to drop her. While lawyers were able to resolve the issue promptly, her financial assistance for premiums were suspended.

Under ACA, Lynn Herrin’s tax credits for premiums were also questioned by the IRS, forcing her to pay $700 to the taxman. Having issues to find a doctor, Herrin decided to cancel her plan, which left her without any assistance when she later found out she had oral and neck cancer.

As countless Americans and residents ditch their plans or pay more for their previously affordable plans because of complex paperwork requirements, many believe that the law was never written to make health care access affordable.

By adding more roadblocks and mandates, ACA forced many Americans to rely on the government for subsidies so they can afford health care. Under a free market system, they would be dealing directly with insurers and providers instead.

By making the cost of insurance an issue, the federal government created a monster that costs the taxpayers and leaves millions of patients without access to quality care when they need it the most.

Currently, 12.7 million people are covered thanks to subsidies created by ACA. But about 470,000 people had their coverage terminated through September 30, 2015 because of complex paperwork requirements. Another 1 million of households had their financial assistance “adjusted” due to what the government calls “income discrepancies.”

By making the process more bureaucratic than it should be, ACA forced countless of consumers to rely on the government for health care. Elizabeth Colvin of Foundation Communities says people have been panicking when they “get that bill for a full-price plan.” This issue is undermining ACA’s insurance markets, simply because the cost to obtain coverage through the government is too high.

As more and more Americans look for alternative ways to have access to health care, the future of ACA is uncertain. Will the next administration take these matters into account when thinking about reforming US health care law?

State of The Union Address: What this Administration Got Wrong About Obamacare

in Healthcare, Liberator Online, News You Can Use by Alice Salles Comments are off

State of The Union Address: What this Administration Got Wrong About Obamacare

This article was featured in our weekly newsletter, the Liberator Online. To receive it in your inbox, sign up here.

During President Barack Obama’s final State of the Union address, this administration’s signature healthcare law was seldom brought up. As a matter of fact, little time was dedicated to healthcare overall. But the few references to the Affordable Care Act (ACA) have been mostly ignored, suggesting that little to no attention is dedicated to healthcare law as the media focuses on the 2016 presidential election.

But to Brian Blase, Senior Research Fellow with the Spending and Budget Initiative at the Mercatus Center at George Mason University, the administration’s claims deserve a second look.

In an article for Forbes, Blase looks at how the current programs are performing. With the hopes of helping Americans have a better understanding of ACA and its consequences, the scholar analyses the administration’s claims and reports on his findings.

cooperative

According to the current administration, ACA was designed to fill “the gaps in employer-based care so that when you lose a job, or you go back to school, or you strike out and launch that new business, you’ll still have coverage.” To Blase, however, things aren’t that simple.

If the administration had made the portability of coverage a main priority, the law would not have to be as complex as it is.

Blase also argues that portability as a main goal would have prompted a piece of legislation that would have attracted considerable bipartisan support. Why? Because most healthcare experts on the right and center have always advocated for increased portability, urging lawmakers to severe the ties between insurance and employment.

To Blase, the primary purpose of ACA couldn’t be to keep Americans covered through the several changes they experience if the law standardizes health insurance and ups the requirements concerning coverage levels. By implementing a complicated tax and subsidy system to support ACA, the Obama administration forced consumers to fall prey to distorting price controls that make insurance coverage actually less affordable.

If the administration’s main goal with ACA was to keep people covered no matter what, the law wouldn’t also have been written in a way that increases gross premiums so radically, making low-income earners less likely to get good coverage.

While Blase spent a good deal of time focusing on this particular claim, another subject also caught his eye.

During the address, president Obama claimed that ACA has helped businesses to create jobs, not eliminate them. To Blase, this particular claim is troubling mostly because it’s not necessarily wrong. It’s misleading instead.

Claiming jobs were created because of the enaction of ACA is not a fact, since job growth naturally increased after the deep economic recession the country had just been recovering from when ACA became the law of the land. During the recession, millions of people were kicked out of their jobs, but as confidence grew, more jobs were inevitably created. That’s just a natural consequence of the labor market dynamics and is not at all connected to the enactment of ACA.

If the current administration is, indeed, concerned with how its healthcare programs are performing, Blase suggests, its review of ACA would lead to its repeal. Why? Because ACA is actually a negative pull on the economy.

According to the Congressional Budget Office, ACA will actually shrink the labor market in America. If the congressional projection is correct, two million full-time jobs will be lost due to ACA alone.

Increasing Costs Tied to Obamacare Make Healthcare Ministries More Appealing Than Insurance Providers

in Economic Liberty, Healthcare, Liberator Online, News You Can Use by Alice Salles Comments are off

Increasing Costs Tied to Obamacare Make Healthcare Ministries More Appealing Than Insurance Providers

This article was featured in our weekly newsletter, the Liberator Online. To receive it in your inbox, sign up here.

As the country is distracted by the presidential election, issues that aren’t getting as much air time as Donald Trump or Hillary Clinton become a side show.

With reports concerning the ineffectiveness of the Affordable Care Act, or Obamacare, hitting the news but being ignored by major news channels, crusaders take it to the Internet to discredit Obamacare critics. As new reports argue that Americans are fed up, smaller publications seek to downplay some of the fears brought up by conservatives and libertarians all along. When faced with evidence that shows ACA is making healthcare less affordable, will these pro-Obamacare crusaders back down?

Health Care

Exactly two days before Christmas, the New York Magazine ran an article tailored to take conservative-leaning Americans to task. The subject? One of the left’s most adored achievements (and one of the right’s biggest, and most disputed, creations): Obamacare.

According to Jonathan Chait, the author, the NY Mag piece was conceived in order to debunk arguments presented by Ross Douthat, who wrote a column on Obamacare for New York Times earlier that same week.

While the piece discusses the number of covered Americans before and after the enactment of Obamacare and other points made by Douthat, it’s when Chait focuses on the cost of healthcare before and after the enactment of ACA that things get interesting.

In the NY Mag piece, Chait introduces a seemingly detailed blueprint of how ACA has bent the overall healthcare cost to the average consumer. Yet he ignores actual evidence proving that no, Obamacare hasn’t helped to keep the cost of healthcare low. As a matter of fact, the constant meddling with the insurance business and the healthcare industry in the past has done nothing but to increase the overall cost of health care. Now, those who lost their previous plans and who are unable to sign up for insurance after Obamacare went into full force are being cornered. As a result, they are choosing to pay the IRS fee instead of getting coverage.

Even those who supported President Barack Obama’s signature law are getting desperate.

But as a number of consumers lose their hope, a report recently published by the Wall Street Journal shows that things might have just gotten worse.

According to the WSJ, the cost of health insurance is such a heavy burden for those who lost their insurance plans after ACA became the law of the land that many consumers are now turning to healthcare ministries to cover their medical expenses.

That’s right. Health insurance costs are so out of control that consumers are turning to ministries, which operate outside the insurance system, in order to get access to the health care they need.

Instead of functioning as an insurance provider, these ministries provide health care cost-sharing arrangements to those who share the same religious beliefs.

Ministries now count with about 500,000 members nationwide thanks to ACA. Previous to the law, there were about 200,000 members enrolled in the system. But things could get crowded soon, making it hard for ministries to take in more members.

While ACA gives these ministries an exception to the law, only groups that have operated continuously since at least December 31, 1999 are eligible. Without the possibility of expanding the number of participating ministries, helping those in need could become too heavy of a burden.

When the exception was added to the law, it hoped to satisfy a relatively small number of groups that argued that nonparticipation was a matter of religious freedom. Now, ministries are being sought after as a matter of survival. And as ministries become crowded, insurance commissioners begin to complain, claiming these groups operating outside ACA are hurting consumers.

But with ministries costing about 30 percent less than private insurance, consumers who choose the more affordable path can’t be blamed for taking the easier way out.

Claiming to have the consumer’s best interest at heart, insurance commissioners from Kentucky, Washington, and Oklahoma have, in the past, decided to take action against ministries in their states. Thankfully, legislatures blocked the efforts. But as the cost of care continues to grow and the number of uninsured only shrinks because of the threat associated with non-compliance, other states may attempt to put an end to faith-based healthcare providers again, hurting thousands of consumers if they succeed.

In light of this report, will NY Mag’s Chait finally agree that Obamacare is making healthcare less affordable? Probably not. Nevertheless, ministries may have to fight yet another battle to stay open if membership growth remains steady.

Two More ACA Cooperatives Go Down in Flames

in Liberator Online, News You Can Use by Jackson Jones Comments are off

Two More ACA Cooperatives Go Down in Flames

This article was featured in our weekly newsletter, the Liberator Online. To receive it in your inbox, sign up here.

Just last week, the Advocates noted the Kentucky Health Cooperative announced that it would close at the end of the year. At the time, the cooperative, which was set up under the Affordable Care Act, was the six to shutter because of financial problems.

cooperativeSince last week, however, two more cooperatives – Connect for Health Colorado and Oregon’s Health CO-OP – have been forced to close, bringing the grand total to eight. Roughly 400,000 people are now without coverage because of the failures. As the Washington Post explained on Friday, “Nearly a third of the innovative health insurance plans created under the Affordable Care Act will be out of business at the end of 2015.

Like other cooperatives, Connect for Health Colorado and Oregon’s Health CO-OP faced significant financial troubles. According to a July 2015 report from the Department of Health and Human Services Office of the Inspector General, Connect for Health Colorado lost $23 million in 2014 and Oregon’s Health CO-OP lost more than $6.7 million.

Cooperatives were supposed to be the big compromise for Democrats who wanted a single-payer program – the so-called “public option” – to compete with private health insurance companies.

“Markets have…been disrupted by a cascade of failures among the ACA co-ops that were intended as a liberal insurance utopia,” the Wall Street Journal noted. “These plans were seeded with billions of dollars in federal start-up loans and were supposed to work like the credit unions or the electric collectives of the Depression era.”

“No profits were allowed, advertising to introduce new products was restricted and industry executives were barred from management. As it turns out, attempting to outlaw expertise and incentives tends not to produce good results,” the paper added.

Indeed, just before the announcement, Oregon’s Health CO-OP CEO Phil Jackson tried to explain an average premium increase of nearly 20 percent. “Nobody knew what it was going to cost to provide insurance benefits on the exchange,”Jackson said. Yeah, it’s such a big surprise that costly health plans with mandated benefits that people may not want or need would attract too few healthy consumers and wind up requiring big premium hikes. Which is exactly what has happened in state after state.

With the next ACA open enrollment period set to begin on November 1, one of the key components of the law is faltering. It’s just a matter of time when the rest of it collapses. The only question is whether it’ll take the health insurance industry with it.

They Said It… With Congressman Dana Rohrabacher, Jonathan Gruber, and More

in Liberator Online by James W. Harris Comments are off

(From the They Said It section in Volume 19, No. 21 of the Liberator Online. Subscribe here!)

RE-LEGALIZE MARIJUANA, SAYS GOP CONGRESSMAN:
Congressman Dana Rohrabacher“The fundamental principles are individual liberty, which Republicans have always talked about; limited government, which Republicans have always talked about; the doctor-patient relationship, which, of course, we have been stressing a lot about lately; and of course, states’ rights. … It is counterproductive to the people of this country to have our limited resources — we’re $500 billion in debt every year — to put in jail someone who is smoking a weed in their back yard, or especially for medical purposes. It is a total waste of resources. … To my fellow Republicans, this is going to help you politically. If I can’t appeal to you on your philosophical nature, come on over for just raw politics, the numbers are going this way now.” — U.S. Congressman Dana Rohrabacher (R-CA), former Reagan press secretary and speech writer, quoted in the Washington Post November 14, 2014.

OBAMACARE PASSED BECAUSE AMERICANS ARE “STUPID,” SAYS OBAMACARE Jonathan GruberCRAFTER:
“If you have a law that makes explicit that healthy people pay in and sick people get money, it wouldn’t have passed. … Lack of transparency is a huge political advantage. And basically, call it the ‘stupidity of the American voter’ or whatever, but basically that was really, really critical to getting the thing to pass.” — Obamacare architect Jonathan Gruber, who was paid nearly half a million dollars to help craft Obamacare, in a 2013 video that surfaced this month.

WHERE IS THE ANTI-WAR LEFT? “Hundreds of airstrikes, over 3,000 soldiers deployed, and a request for $5.6 billion is a war, folks. Had President Mitt Romney just doubled our military presence in the Middle East and launched airstrikes that even the Kurds and the Free Syrian Army have criticized, the reaction would have been entirely different from liberals throughout the country. We once again have over 3,000 American boots on the ground in Iraq (without a peep from the anti-war left)…” — journalist H. A. Goodman, “I’m a Liberal Democrat. I’m Voting for Rand Paul in 2016. Here Is Why,” Huffington Post, Nov. 17, 2014.

YET ANOTHER DUMB WAR: “For most of this century, we’ve been fighting wars to enhance our security, and each time, we find ourselves with more enemies and less security. By now it should be clear that is not a coincidence.”— syndicated columnist Steve Chapman, “The U.S. Goes to War Without a Clue, Again,” November 6, 2014.

Video: Hilarious Remy Take on “Working 9 to 5″

in Healthcare, Liberator Online by James W. Harris Comments are off

(From the Intellectual Ammunition section in Volume 19, No. 5 of the Liberator Online. Subscribe here!)

The great liberty-minded comedian Remy sings about working “9 to… hey, wait a minute!”

See how Obamacare shakes up Remy’s employment situation. And he’s not the only one…

Watch it, laugh, then share with friends. PS: Lyrics, with helpful info links, are at the bottom of this page.

Video: Coffeecare —The Affordable Coffee Act

in Healthcare, Liberator Online by James W. Harris Comments are off

You know how you buy a cup of coffee. You just go into the store, ask for what you want, and pay. End of story.

But… What if we had to buy our coffee like the government is now forcing us to buy health insurance? What if, like Obamacare, we had… Coffeecare?

This scathing and very funny animated video by RealityAlwaysWins show us. The result is a lot of laughs and a thorough indictment of the bitter brew that is Obamacare. All in just three and a half short and funny minutes.

Share it online with friends. It will open their eyes and let them smell… the Coffeecare.