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22 January 2017


Trump’s Healthcare Bait and Switch

One of President Trump’s first executive orders was to order a relaxation of the mandate on federal agencies to enforce non-participation penalties on taxpayers eligible for coverage by the ACA.   It is my understanding that that feature of Obama Care was included in order to assure that enough funds would be available to finance its benefits by forcing greater participation by healthier and younger potential subscribers.  The result of elimination of this disincentive from the ACA would appear to be the need to subsidize the Plan with general federal revenues in order to pay for the healthcare of those who choose not to pay for their own private plans.

What it comes down to is that there is no silver bullet.  Somebody has to pay for ersatz universal health care.  Obama Care is an attempt to disguise an expensive plan to cover everyone with healthcare insurance by forcing those not covered through their employers or under costly independent private plans to subscribe for a government-brokered private plan whether they thought they needed it or not.  It modeled itself on Social Security, which has young wage-earners financing retirees’ benefits through payroll deductions. 

So who’s complaining that a champion of smaller government is responding to disappointment that Obama Care cannot be a free ride by allowing evasion of its primary mechanism for avoiding insolvency?  The relaxation of penalty requirements on those who refuse to participate will inevitably lead to relying on general federal revenues in order to finance ACA’s benefits.  Universal health insurance is too attractive now that we have it.  The ultimate accomplishment of Obama Care may then turn out to be acceptance of universal healthcare  by conservative policy-makers.  Was it “bait and switch?”   Perhaps a deft use of that tactic.

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