Obamacare is not a done deal: 13 reasons why Obamacare is vulnerable

Back in July, I wrote a piece asking: “Is Obamacare already dead?” I did the piece shortly after the Supreme Court upheld the mandate as constitutional under the taxation authority granted to the Congress.

Now that President Obama has won re-election many think this means Obamacare is automatically going to be implemented.

Not so.

For the healthcare law to be implemented each state must decide to create a health insurance exchange required by Obamacare and each state must decide if they want to massively expand Medicaid.

The National Review listed 13 reasons why Obamacare is still vulnerable:

First, states are under no obligation to create one.

Second, operating an Obamacare exchange would be illegal in 14 states. Alabama, Arizona, Georgia, Idaho, Indiana, Kansas, Louisiana, Missouri, Montana, Ohio, Oklahoma, Tennessee, Utah, and Virginia have enacted either statutes or constitutional amendments (or both) forbidding state employees to participate in an essential exchange function: implementing Obamacare’s individual and employer mandates.

Third, each exchange would cost its state an estimated $10 million to $100 million per year, necessitating tax increases.

Fourth, the November 16 deadline is no more real than the “deadlines” for implementing REAL ID, which have been pushed back repeatedly since 2008.

Fifth, states can always create an exchange later if they choose.

Sixth, a state-created exchange is not a state-controlledexchange. All exchanges will be controlled by Washington.

Seventh, Congress authorized no funds for federal “fallback” exchanges. So Washington may not be able to impose Exchanges on states at all.

Eighth, the Obama administration has yet to provide crucial information that states need before they can make an informed decision.

Ninth, creating an exchange sets state officials up to take the blame when Obamacare increases insurance premiums and denies care to the sick. State officials won’t want their names on this disastrous mess.

Tenth, creating an exchange would be assisting in the creation of a “public option” that would drive domestic health-insurance carriers out of business through unfair competition.

Eleventh, Obamacare remains unpopular. The latest Kaiser Family Foundation poll found that only 38 percent of the public supports it.

Twelfth, defaulting to a federal exchange exempts a state’s employers from the employer mandate — a tax of $2,000 per worker per year (the tax applies to companies with more than 59 employees, but for such companies that tax applies after the 30th employee, not the 59th). If all states did so, that would exempt 18 million Americans from the individual mandate’s tax of $2,085 per family of four. Avoiding those taxes improves a state’s prospects for job creation, and protects the conscience rights of employers and individuals whom the Obama administration is forcing to purchase contraceptives coverage.

Finally, rejecting an exchange reduces the federal deficit. Obamacare offers its deficit-financed subsidies to private health insurers only through state-created exchanges. If all states declined, federal deficits would fall by roughly $700 billion over ten years.

As for the Medicaid expansion, the Supreme Court upheld each state’s right to refuse the expansion. If enough states refuse to implement the exchanges and expand Medicaid the Federal Government will be forced to reopen Obamacare.

Obamacare is NOT a done deal.

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3 Responses to Obamacare is not a done deal: 13 reasons why Obamacare is vulnerable

  1. My guest blogger JUST touched on this today, Bret. Should have had him read your post first.
    Actually, I’ll try to link it now for him, if I can find a good place in his post to do so.

    Enjoy your time off, sir.

  2. Pingback: ‘Obamacare’: even WORSE than predicted, but the fight isn’t over yet | Two Heads are Better Than One

  3. Pingback: Wall Street Journal’s David Wessel: Four key questions for health-care law | T.B Rickert's Call

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