Topic: General

Big Business Gets Yet Another Obamacare Delay That Individuals Don’t

“I didn’t simply choose to delay this on my own,” President Obama reassured the nation about his unilateral decision to delay Obamacare’s employer mandate. “This was in consultation with businesses all across the country,” he said, as if that made the situation better instead of worse. Obama threw his “consultants” another bone when he decided to delay the reporting requirements the law imposes on employers, also until 2015. The president’s generosity toward large corporations will be financed by the American taxpayer. The Congressional Budget Office projects these delays will cost taxpayers another $3 billion in new government spending and reduce federal revenues by $9 billion, for a total increase in the federal debt of $12 billion. Yet the president fails to show the same concern for individual taxpayers. When the House of Representatives, including dozens of Democrats, voted to extend the same break to individuals by delaying Obamacare’s individual mandate by one year, President Obama threatened to veto that bill. Bizarrely, he also threatened to veto another bill (approved by an even broader bipartisan majority) that would make legal his illegal delay of the employer mandate.

So perhaps we should not be too surprised now that the New York Times reveals yet another delay the president approved at the behest of big business:

In another setback for President Obama’s health care initiative, the administration has delayed until 2015 a significant consumer protection in the law that limits how much people may have to spend on their own health care.

The limit on out-of-pocket costs, including deductibles and co-payments, was not supposed to exceed $6,350 for an individual and $12,700 for a family. But under a little-noticed ruling, federal officials have granted a one-year grace period to some insurers, allowing them to set higher limits, or no limit at all on some costs, in 2014…

[F]ederal officials said that many insurers and employers needed more time to comply because they used separate companies to help administer major medical coverage and drug benefits, with separate limits on out-of-pocket costs…

A senior administration official, speaking on condition of anonymity to discuss internal deliberations, said: “We knew this was an important issue. We had to balance the interests of consumers with the concerns of health plan sponsors and carriers, which told us that their computer systems were not set up to aggregate all of a person’s out-of-pocket costs. They asked for more time to comply.”…

Theodore M. Thompson, a vice president of the National Multiple Sclerosis Society, said: “The promise of out-of-pocket limits was one of the main reasons we supported health care reform. So we are disappointed that some plans will be allowed to have multiple out-of-pocket limits in 2014.”

It is a sign of Obamacare’s complexity that the Obama administration felt it needed to issue this delay. It is a further sign of the law’s complexity that this delay was announced in February, yet is only coming to light now.

Guess Who’s One of the Hill’s ‘100 People to Watch This Fall’

I guess I’ll have to tout this myself. Last week, the Hill newspaper put me on its list of “the 100 people you can’t ignore this fall if you’re wondering how events in Congress and the White House will play out.” Here’s the write-up

Michael Cannon Director of health policy studies at the Cato Institute
 
Think the Supreme Court has settled the question of ObamaCare’s legality? Not if Cannon has anything to say about it. Cannon is a tireless advocate for the argument that the IRS has illegally implemented the healthcare law’s insurance subsidies, which will help low-income households cover the cost of their premiums. 
 
His argument is that healthcare law, as written, does not allow for the subsidies to be used in healthcare marketplaces that are set up by the federal government.
 
He helped the state of Oklahoma file a lawsuit against the subsidies, and a group of small businesses filed a separate suit on the same grounds, in case Cannon’s runs into procedural roadblocks.
 
If the lawsuits Cannon has spearheaded are successful, they could have a devastating impact on the healthcare law. A final decision in favor would stop the flow of tax subsidies to people in more than half of the states, making ObamaCare far less attractive to consumers and stripping away much of the law’s promise of affordability.

Corrections and amplifications. The argument is as much Jonathan Adler’s as mine; we develop it together in this law-journal article. The argument is not that the IRS is illegally implementing otherwise lawful subsidies; it is that the IRS is trying to dispense some $700 billion in illegal subsidies that Congress expressly did not authorize, and impose illegal taxes on millions of employers and individual Americans starting in 2014; that the Obama administration is attempting to tax, borrow, and spend nearly $1 trillion without congressional authorization. Finally, I am neither a party nor counsel nor financier to either Pruitt v. Sebelius or Halbig v. Sebelius.

More Americans Going Galt

President Obama promised he would unite the world…and he’s right.

Representatives from all parts of the globe have bitterly complained about an awful piece of legislation, called the Foreign Account Tax Compliance Act (FATCA), that was enacted back in 2010.

Michael Ramirez/Investor's Business Daily(Michael Ramirez/Investors Business Daily)

They despise this unjust law because it extends the power of the IRS into the domestic affairs of other nations. That’s an understandable source of conflict, which should be easy to understand. Wouldn’t all of us get upset, after all, if the French government or Russian government wanted to impose their laws on things that take place within our borders?

But it’s not just foreign governments that are irked. The law is so bad that it is causing a big uptick in the number of Americans who are giving up their citizenship.

Here are some details from a Bloomberg report.

Americans renouncing U.S. citizenship surged sixfold in the second quarter from a year earlier… Expatriates giving up their nationality at U.S. embassies climbed to 1,131 in the three months through June from 189 in the year-earlier period, according to Federal Register figures published today. That brought the first-half total to 1,810 compared with 235 for the whole of 2008. The U.S., the only nation in the Organization for Economic Cooperation and Development that taxes citizens wherever they reside.

I’m glad that the article mentions that American law is so out of whack with the rest of the world.

Obama Administration Should Close NATO Door to Georgia

Although many members of the defense establishment haven’t seemed to notice, the Evil Empire collapsed. The Soviet Union is gone, along with the Warsaw Pact. Europe is wealthier than America. Why is Washington still pushing to expand NATO?

In May, Secretary of State John Kerry announced that “We are very supportive of Georgia’s aspirations with respect to NATO.” In June NATO Secretary General Anders Fogh Rasmussen visited Tbilisi, where he said that once Tbilisi made needed reforms “the burden will be on us to live up to our pledge that Georgia will be a member of NATO.”

Alas, the biggest burden of adding Tbilisi would fall on the United States. The administration should halt the process before it proceeds any further.

The North Atlantic Treaty Organization was created to contain Joseph Stalin’s Soviet Union. The U.S.S.R.’s demise left NATO without an enemy. The alliance desperately looked for new duties, finally settling on “out-of-area” responsibilities. 

In essence, the alliance would find wars to fight elsewhere, such as in Afghanistan and Libya, while expanding eastward toward Moscow. That process continues today. For instance, Rasmussen declared: “Georgia’s full Euro-Atlantic integration is a goal we all share” 

That’s a dumb idea. Georgia would be a security liability to the United States and Europe.

The Political Revolution Made by Margaret Thatcher

The rise of Ronald Reagan was improbable. Margaret Thatcher’s journey to British prime minister seemed almost impossible. Journalist Charles Moore tells the story in Margaret Thatcher: From Grantham to the Falklands

Margaret Roberts was the younger of two daughters of a middle class grocer. She married businessman Denis Thatcher, who supported her political career.

Although she was not the first female MP, they were few in number. Rarer still were those with an aptitude for “men’s issues,” such as economics. But Thatcher impressed party elders and local residents, and in 1958 won the Conservative Party nod to compete in Finchley, a Tory stronghold.

In the following years she served in and out of government, impressing those around her with her knowledge of the issues and ability in debate. She joined the cabinet of Prime Minister Edward Heath in 1970.

As I wrote in my review in the Washington Times, that government:

“was battered by turbulent times.  Indeed, I lived through much of his premiership, since my Air Force father was stationed in Britain from 1970 to 1973.  Unfortunately, Heath lacked the principled beliefs and firm character necessary to challenge the expansive welfare state.

He went to the polls early and lost.  The majority of Tory MPs then wanted to defenestrate him, but the obvious challengers hung back.  So the lady from Finchley challenged Heath.  On February 11, 1975 she piled up an overwhelming majority on the second ballot to become opposition leader.”

It was another four years before the weak Labor government collapsed. But on May 3, 1979, British voters gave the Conservatives a 43 seat majority, making Margaret Thatcher prime minister. The country’s economic problems seemed intractable and party moderates soon wanted to retreat. However, she famously responded: “The lady’s not for turning.” 

Her premiership was rescued by Argentina’s decision to invade the Falkland Islands on April 2, 1982. The islands didn’t seem worth a war and Britain’s military power was waning. However, the “Iron Lady” risked all, and won. That set the stage for her future success. Writes Moore:  “The Falklands War established Mrs. Thatcher’s personal mastery of the political scene, and convinced people of her special gifts of leadership.”

There ends volume one, with much more to come.  It’s well worth the read, and likely will leave any political buff waiting for more.

‘Stupid’ ObamaCare Provision Offends America’s Highest Caste: Congress

ObamaCare’s gravest sin may be that it has offended America’s highest caste: members of Congress and their staffs. Thanks to an amendment by Sen. Chuck Grassley (R-IA), the law provides:

the only health plans that the Federal Government may make available to Members of Congress and congressional staff with respect to their service as a Member of Congress or congressional staff shall be health plans that are created under this Act…or offered through an Exchange established under this Act…

In effect, ObamaCare throws members of Congress out of the Federal Employees Health Benefits Program (where most members and staff obtain health insurance) and offers them no other choice but to enroll in coverage through one of ObamaCare’s Exchanges. But here’s the kicker: though the federal government currently pays thousands of dollars of the cost of the congresscritters’ FEHBP coverage, neither ObamaCare nor any other federal law authorizes the feds to apply that money toward a congresscritter’s Exchange premiums. Today’s New York Times reports:

David M. Ermer, a lawyer who has represented insurers in the federal employee program for 30 years, said, “I do not think members of Congress and their staff can get funds for coverage in the exchanges under existing law.”

So ObamaCare essentially delivers a pay cut to members and staff in the neighborhood of $5,000 for single employees and $10,000 for families. 

Even congressional Democrats who voted for ObamaCare are freaking out (and pointing fingers). Again, the New York Times:

Representative Diana DeGette, Democrat of Colorado, said the Senate was responsible for the provision requiring lawmakers and many aides to get insurance in the exchanges.

“We had to take the Senate version of the health care bill,” Ms. DeGette said. “This is not anything we spent time talking about here in the House.”

Another House Democrat, speaking on condition of anonymity, said, “This was a stupid provision that never should have gotten into the law.”

You’d never know they had a choice, and voted for this provision anyway.

Finally, the Times notes, “The issue is politically charged because the White House and Congress are highly sensitive to any suggestion that lawmakers or their aides are getting special treatment under the health law” and, “Aides who work for Congressional committees and in leadership offices, like those of the speaker of the House and the majority and minority leaders of the two chambers, are apparently exempt — though neither Congress nor the administration has said for sure.” That creates the potential for a sneaky, backdoor way that ObamaCare supporters — say, the Senate Democrats who set budgets for congressional offices — could shield their staff from ObamaCare: shift staff from personal to committee and leadership offices.

Or, the White House could just decide to make the same contribution to their Exchange coverage, statute be damned. It wouldn’t be the first time this White House tried to protect ObamaCare by spending money that Congress never authorized.

Congressional watchdogs, be on the lookout.