Tag: Obamacare

Obamacare Increases Man’s Premiums 300%, Supporters Call It a Success Story

Obamacare’s health insurance Exchanges opened for business, in most states, sort of, on Tuesday. Millions of people have reportedly flooded the Exchanges, but have had so much difficulty using the web sites that reporters have had a hard time finding anyone who has successfully enrolled in an Obamacare plan. The Washington Post’s Sarah Kliff writes:

Just moments after writing a blog post Thursday morning, about the lack of information on Obamacare enrollees, Enroll America reached out with contact information for Chad Henderson, a 21-year-old in Georgia who had successfully enrolled in coverage on the federal marketplace.

Chad is evidently a scarce commodity.

It was a little difficult to reach Henderson, mostly because so many other reporters wanted to talk to him. “I’m supposed to talk to the Chattanooga Times Free Press in a half hour,” Henderson said. “And The Wall Street Journal is supposed to call.”

Luckily, Henderson managed to squeeze me in for a few minutes.

Kliff reports that after a three-hour ordeal, Chad bought an Obamacare plan that cost him $175 per month – pretty steep, considering he makes less than $11,500 per year. His Obamacare premium comes to least 18 percent of his income. And no, Chad is not eligible for subsidies.

Compare that to what Chad could have paid if he bought one of the pre-Obamacare plans still available on eHealthInsurance.com until December 31. The cheapest such plan for someone meeting Chad’s profile is just $44.72 – as little as 5 percent of his annual income and about one-quarter of his Obamacare premium.

I can’t yet say whether Chad’s $175 premium is the lowest-cost plan available to him through the Exchange. (I’m in the process of researching that. Let’s just say it’ll probably take a few hours.) But it’s probably close. The cheapest plan available to him through eHealthInsurance.com after Obamacare’s community-rating price controls take effect in 2014, and drive up premiums for young, healthy people market-wide, is $190.23. That’s with the maximum cost-sharing allowed under Obamacare. So it appears Obamacare quadrupled Chad’s premiums, and Enroll America thinks that is a success story.

To me, the most interesting part is that Chad didn’t buy health insurance when it was available to him for just $45 per month, but did buy it at an unsubsidized $175/month premium. Why? Again, Kliff:

He describes himself as a supporter of President Obama who has anxiously awaited Obamacare’s rollout…

Part of his decision was ideological: He wants the health-care law to succeed.

Reason’s “Obamacare Video Contest Song”

Lyrics:

What’s hated by unions

has businesses wary

and dropping coverage 

like the ‘Skins secondary?

Causing thousands of layoffs

taking it’s toll?

What’s so good for people

that they’re forced to enroll?

What’s a law that’s so good

folks who passed and defended it

see it and got waivers

to be exempted? It’s

like Olestra, at first 

it sounded hip

but we quickly found ourselves

dealing with a whole lot of sh…

Obamacare, Obamacare

Unions and businesses both in despair

So to recap, young people,

your hours get cut

and your income goes down

and your premium’s up

and the taxes you pay

with the cash you have left

go to pay for a stupid 

video contest, touting

Obamacare, Obamacare

Unions and businesses both in despair

It’s hated by doctors and unions are mad.

Not since Billy Ray Cyrus 

has someone made something this bad.

Goldhill: ObamaCare as Old-Fashioned Health Policy

Another excerpt from David Goldhill’s new book, Catastrophic Care: How American Health Care Killed My Father – And How We can Fix It:

Despite the good intentions of its authors, the ACA is less a reform of our health care system than an extension of its current principles to their logical end… 

In a system burdened by complexity, bureaucratic explosion, and lack of innovation, the ACA paves the way for even more rules, many of which are merely mandates for future rules and ever more committees and commissions…

The problem with the ACA isn’t that it represents “government takeover of heath care” or “socialism”…The problem with the ACA is that it’s so old-fashioned.

Register now for Cato’s book forum on Catastrophic Care featuring Goldhill, the Brookings Institution’s Kavita Patel, and me. The forum is this Wednesday, September 18, from 12-1:30pm at the Cato Institute. Click here to register. Seats are limited, so register now.

New Obamacare Lawsuit Targets Arizona Gov. Brewer’s Illegal New Taxes

In 1992, after seeing their taxes raised 8 times in 9 years, the people of Arizona overwhelmingly approved Proposition 108, a ballot initiative that amended the state constitution to require tax and fee increases to be passed by a 2/3 vote in each of Arizona’s legislative bodies.  Since then, Prop 108’s supermajority requirement has protected Arizona taxpayers from the kind of special-interest-driven tax increases that typically don’t enjoy public support. As a result, Arizona’s tax burden has fallen over the years, to the state’s great economic benefit.

Recently, however, as part of a brazen effort to force through Obamacare’s Medicaid expansion, Governor Jan Brewer – who ran for reelection last year as a staunch opponent of Obamacare – sidestepped Prop 108 in a way that threatens to eviscerate its taxpayer protections and otherwise violate Arizona’s stricter-than-normal adherence to the separation of powers.

Because the Medicaid expansion will cost Arizona an untold sum, and did not receive the 2/3 majority required for it to raise the taxes to pay for itself, Brewer employed more creative means to raise Arizonans’ taxes: delegating the taxation authority to a state bureaucracy and calling it an “assessment.” This approach takes advantage of Prop 108’s exception for “fees and assessments that are authorized by statute, but are not prescribed by formula, amount or limit, and are set by a state officer or agency.” Interpreted Brewer’s way, the exception allows the legislature to delegate a taxing power to state agencies that the legislature itself doesn’t have. If read this way, the exception would forevermore swallow the rule and impose an outcome contrary to Prop 108’s stated purpose.

Accordingly, our friends at the Goldwater Institute last week filed suit in state court on behalf of state lawmakers – including Rep. Adam Kwasman, a good friend of mine who’s now the vice-chair of the Arizona House Ways & Means Committee – and their constituents, challenging the new tax as a violation of Arizona’s constitution and the state’s separation of powers.  Goldwater argues that the hidden tax violates Prop. 108’s supermajority requirement for new taxes, and that Arizona’s strict separation of powers prohibits the delegation of taxing power to an unaccountable state bureaucracy.

Goldwater is clearly in the right. Prop 108 was adopted for the plain purpose of preventing precisely this type of special interest tax-and-spend behavior – behavior the people of Arizona will be even less able to oppose if state courts determine that a bare legislative majority can delegate taxation power that it doesn’t itself possess. Brewer’s Medicaid expansion, meanwhile, threatens to take the taxing power out of Arizonans’ hands and give it to bureuacrats and the special interests that lobby them.

It will be a shame if Arizona courts permit Brewer’s newfound insistence on enabling Obamacare to effectively neuter a constitutional provision supported by more than 70% of voters. For more commentary on the case, read Josh Blackman.

This blogpost was co-authored by Cato legal associate Julio Colomba.

Are Democrats and Republicans Colluding to Preserve Congress’ Obamacare Exemption?

I have written about the special (and illegal) Obamacare exemption the president has granted Congress.

It turns out, this exemption polls poorly. Opposition is north of 90 percent, unites Obamacare opponents and supporters, and has the potential to oust incumbents members of Congress who accept an special exemption that other Americans don’t get.

You might think that Republican and Democratic party committees would be salivating at the prospect of using this issue to oust incumbents of the other party. At a minimum, you would think that Obamacare opponents (i.e., Republicans) would drive a wedge between the law’s supporters (i.e., Democrats) and the public by forcing supporters to vote on a measure eliminating the exemption. Doing so could elect more new Republicans in 2014 by allowing them attack incumbent Democrats thus: “My opponent voted for Obamacare, and then voted to give himself and his well-paid friends in Congress a special exemption that the people of this state/district don’t get. That’s just wrong.”

Yet it appears the National Republican Senatorial Committee and the Democratic Senatorial Campaign Committee have negotiated a truce on this issue. If true, both parties have agreed not to give voice to the will of the people by attacking members of the other party who consent to this special privilege granted to members of Congress. If true, it would confirm what I have written previously: “America has a two-party system. But it’s not Republicans versus Democrats. It’s the ruling class — Republicans and Democrats — against everyone else.”

I can hardly imagine a more powerful argument for allowing unlimited spending by independent groups to advocate the election or defeat of political candidates. That is, I can hardly imagine a more powerful argument against “campaign finance reform.”

The New Republic: Obama Kinda Lied a Little about Obamacare

On Monday, The New Republic’s Jonathan Cohn admitted that President Obama “made a misleading statement about Obamacare rates” during his press conference on Friday. The magazine’s Twitter feed (@tnr) announced:

Whoops! The president (accidentally, we think) told a little #Obamacare lie on Friday.

During his press conference, the president said:

[When it comes to people without access to employer-sponsored coverage,] they’re going to be able to go on a website or call up a call center and sign up for affordable quality health insurance at a significantly cheaper rate than what they can get right now on the individual market. And if even with lower premiums they still can’t afford it, we’re going to be able to provide them with a tax credit to help them buy it. [Emphasis added.]

The problem, Cohn writes, is that:

while some people will pay less than they pay today, some will pay more. They will primarily be young, healthy men who benefited from preferential pricing in the past, were content with coverage that had huge gaps, and are too wealthy to qualify for the law’s tax credits—which are substantial but phase out at higher incomes…

But somebody listening to Obama’s press conference probably wouldn’t grasp that distinction. They’d come away thinking their insurance will be cheaper next year. For some, it won’t be. Obama isn’t doing himself, or the law, any favors by fostering a false expectation.