Barack Obama has now opened the door for ACA fraud to filter into the healthcare industry, by exempting ACA from US fraudulent laws – the Anti-Kickback laws. Essentially, government is exempting government from government laws. [Lest we forget the Affordable Care Act has more than 1200 exemptions written in it.]
While this may have some very limited upside, the blowback will certainly be more profound. Back door handshakes, more pocket-lining…and the “punish those against us and cater to those who support us” – will certainly be the Modus Operandi. The Affordable Care Act law has been bad from the moment of conception…this is a nuclear disaster.
As always, the Modus Operandi of Obama and his administration; the more things go wrong, the more they look for scapegoats. The web site doesn’t work because of the contractors. The insurance policies are getting cancelled because of “bad apple” insurers. Everything is someone else’s fault, just as everything is Bush’s fault.
Soon, employers who have fewer than 50 employees and are not required by ObamaCare to provide health insurance to their employees will start dumping them onto the exchanges. It’s a simple business reality. The “minimum standards” in ObamaCare require a level of coverage that will jack up premiums way beyond what many companies are able to budget for.
Employers are already trying to avoid the requirement by cutting hours back to 29 or less per week, thus making employees part-time by ObamaCare definitions. But soon they’ll look at the big picture and realize they’re better off sending employees to the exchanges and letting them pursue government subsidies to help cover the premiums.
But, you only get a subsidy if your income doesn’t exceed a certain level. That means employers will also have an incentive to limit pay so their employees can get the subsidies. Not only does ObamaCare incentivize the dropping of coverage, it will also incentivize low wages. And if they raise the minimum wage to the proposed $10.10 per hour, the impact the sound of crumbling metal!
The Obama administration will do what it always does and demonize the people who merely responded rationally to the incentives in ObamaCare. Companies are not in business to spend money excessively and irrationally, especially if there is an alternative. Many who provided insurance to employees before will not do so now because, under the circumstances created by ObamaCare, it is no longer rational to do so. Again, a simple business realty.
Update, 02/11/2014: Obamacare is geared to increase income inequality in our country. Is it any surprise that the Democrats would encourage “free time, less work, etc.”? After all, they are the masters of creating a problem that “only government can solve.” Those in the know, are acutely aware of the Democrat platform for upcoming elections; income inequality.
Amazingly, the Congressional Budget Office report exposes the talking point rather well. Is there any doubt that the discussion and reinforcement of income inequality is intentional? Democrats began spinning this as an advantage to Obamacare.
Nancy Pelosi stated: “Yesterday, the CBO projected that by 2021, the Affordable Care Act will enable more than 2 million workers to escape ‘job-lock’ — the situation where workers remain tied to employers for access to health insurance benefits,”
Pelosi was simply stating that workers will now have the “freedom” to leave their jobs to escape losing their subsidies for Health Care Insurance and will not be trapped in a job. In other words, now that we know “what’s in it”, employees can “choose” not to work because it would cost them to do so. So, she is proud that we are disenfranchising the middle class to work harder, or at all? After all, the cut off’s for the subsidy are at 400% of the poverty level; a middle class income. Discouragement of people’s work habits only serves to widen the income gap between the middle class and the “evil” rich.
Why would a middle class family choose to penalize itself by working harder in this way? The costs of the subsidies land upon those who work. And, to no one’s surprise, the burden of these costs will land upon the working middle class the hardest. Are the Democrats professing that America is too lazy to work? The types of statements we have heard from the left, seem to support the argument.
Representative Keith Ellison declared: “Americans work way more than the average of industrialized countries around the world,” he said. ”What the Congressional Budget Office is saying, we’re going to discourage kids from being [in] latchkey. Have parents come home working reasonable hours. People can retire. People may be able to cook dinner rather than get takeout. The fact is, that if Americans can have more choices to open up a new business they have been wanting to start, this is a good thing. “If you look at international comparisons country by country, Americans work way more than the average of industrialized countries around the world,” he continued. “We might to want look at our work-life balance, and this is something that gives us a great opportunity.”
We cannot get around the disenfranchisement to work and make more money for this income range. It will only serve to discourage people for reaching higher and pushing themselves to do more for themselves and others. And, most of all, it will continue to encourage the wealth gap in the country through unintended, or intentional consequences.
It appears I was more right than wrong months ago….