Obamacare, Exchanges, Federal, State, Taxes, Subsidies

This is, yet, another proof of how careless our legislators are in legislating the laws. In the legislation process of a law worth billions of dollars of tax payers’ money, it is very obvious that almost no one actually read it. All of the legislators are supposed to vote along party lines, anyways. So, who cares? It wasn’t until a Cato Institute analyst pointed out to this loophole in the law, nobody even realized, until then. So, the people who are reading the laws are only the people being effected by laws. They are definitely not the legislators. Democrats are now coming up with the excuse that this loophole was placed intentionally in the hope that most states will comply and setup the exchanges. What?

In the midst of all the opposition to law, and open threats from many states, even before the law as passed that they will not setup the exchanges, you must be a complete idiot to place this loophole by intention. The fact is that loophole is the result of carelessness of lawmakers. Fortunately, this loophole is turning out to be good. Two different Federal Appeals Courts came out with two opposite decisions on this issue. One decision said that subsidies can be provided only through the exchanges run by states. This is based on the wording of Obamacare law. The other decision said that law authorizes federal government to provide subsidies even with federally run exchanges. This decision is based on intent of law. In the light of these conflicting decisions, federal government still intends to keep providing subsidies through all exchanges, federal or state. This battle is now going to go to a full panel appeals court. Currently it seems to in the favor of Democrats by a ratio of 8/5. It is very likely that the case will ultimately end up in Supreme Court.

It is being predicted that Supreme Court will go with the wording of law rather than the assumed intent. The irony of this case is, if Supreme Court stops federal government from providing subsidies through federally run exchanges then law literally cannot work. This is because when federal government cannot provide subsidies in any specific state, it also loses the authority to tax and penalize the businesses and individuals as well. Democrats are saying that taking away the subsidies does not automatically means that federal government cannot tax and penalize the individuals and businesses in those states, as well.

So, the businesses and individuals will be paying taxes and penalties for non-compliance even without getting subsidies in their states. If this happens, it will ensue another legal battle to fight the federal government’s right to tax and penalize without providing subsidies in the states without state run exchanges. The bottom line is that the law is very poorly written, and doesn’t seem to be working. Right now, its future seems to very uncertain. The question here is, if they cannot even write a good law, how can they run the whole system? How can people trust their healthcare on such an incompetent bureaucracy?

Law has been a continuous disaster from very beginning. First, they could not build a working website. After that millions of people lost their coverage in spite of the promise, “if you like your insurance, you can keep it”. Obama also promised that it will reduce the cost of healthcare. Contrary to that cost has been rising with a much more rapid pace. Now, if subsidies stop, the Obamacare subscribers are going to see a several fold rise in their cost. Healthcare industry in United States is a serious mess. No doubt about that. But, going for wrong solutions is not going to fix the problems, as well.

What needs to be done is to allow buying insurance across the state borders. Open the competition like car insurance, for example, and watch health insurance companies fighting for your business, at any cost. This is the correct way to improve service, coverage and to reduce cost. Regulations should also be relieved to allow as many start-ups as possible. Current regulations have resulted into the monopoly of very few big corporations on health insurance business. Insurance companies are financing the campaigns of Democrats and Republicans. In turn, they are placing the laws and regulation which thwart the entry of smaller start-ups.

More start-ups and increased competition seems to be the only viable solution. Community based cooperatives and self-pay like old days are other ways to improve the situation. Increasing the demand for health insurance by providing tax payers financed subsidies are only going to raise the cost. Government can also provide tax credit to individual insurance buyers. This will improve mobility, too, as the restraints that come with employer based insurance will be released. We need to raise this issue above and beyond the political and corporate bickering.
Problems in healthcare are also directly related to dismal situation of economy. If government takes away the business killing regulations and taxation, the economy can grow and create jobs. Employed people do not need government assistance for anything. Instead of making Americans the slaves of government welfare, set them free. Make them independent. Road constructions and other tax payers financed projects have failed, again, to improve economy. Give a chance to the only historically proven method of improving economy. Let private enterprise free. Open markets, and see the magic, again. Stop killing people’s savings and investments by artificially keeping interest levels low through Federal Reserve‚Äôs securities buyback programs.
Start-ups and businesses are dried up of financing because savings are almost not growing, at all. No savings, no investments. No investments, no tart-ups, no business growth. No business growth, no new jobs, no raise in wages. No jobs and stagnant wages mean no money to buy. No money to buy means need for government assistance. Do you know, now, why Socialists like bad economy? They want to keep us dependent on government so that government can keep taking away our rights, as a tradeoff for assistance. But, they are forgetting one thing. It is the great American economy which provides our government the ability to fight wars and provide welfare.
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