Wednesday, April 23, 2014

The balancing act: Obamacare strikes again

From page A4 | February 24, 2014 | 19 Comments

Unless you have been living in a cave, most everyone above room temperature has heard about the new Congressional Budget Office report that over the next few years, Obamacare is going to cost the equivalent of about 2.5 million jobs. We already know that Obamacare is going to cost hundreds of billions of dollars more than projected (and with this new report that cost is about to go up), that under Obamacare it is unlikely that you will be able to keep your current doctor or medical plan and that under Obamacare your cost of health insurance is going up significantly in price instead of it costing you a promised up to $2,500 less.

There is another new lie becoming evident from President Obama as just before the launch of Obamacare he said “There is no serious evidence that the law…is holding back economic growth.” An economist/professor from the University of Chicago, Casey Mulligan, said otherwise long before the launch and now the CBO is listening and recognizing his work. As put by the Wall Street Journal, Mulligan’s expertise is how government choices influence the incentives and rewards for work. His analysis of ObamaCare said that the job contraction from ObamaCare would be 3 percent, more than double the amount originally put forth by the CBO who with their new report now agrees with Mulligan.

At a Washington hearing a year ago Mulligan said that “when you pay people to be low income you are going to have more low-income people. Just as he said that “if you pay unemployed people you are going to get more unemployed people…and you can’t deny the consequences to the labor market.”

And this whole trillion dollar program was conceived to attempt to cover the 15 percent of Americans who did not have health insurance. Remember when Obamacare was instituted and rammed secretly through Congress, 85 percent of Americans were happy with their health care. So this whole program was conceived to help a small minority at the expense of a large majority. Sounds democratic to me. Of course the question is why they didn’t just develop a medical safety net for the 15 percent, but perhaps that wouldn’t have given government control of the other 85 percent.

In California 88 percent of the new signups are subsidized or are straight Medicaid.

Here is how it works.  If you are single and make less than 138 percent of the poverty level (about $16,000) you qualify for free Medicaid. For a family of four that would be $32,500 annually. If you make a dollar more, medical insurance will cost you money and even with subsidies that could cost over $2,500 a year. Why make more money? In fact, you might want to do whatever is possible to keep your income at below $32,500 or it might cost you more money than you would otherwise earn.

For people making more money, the disincentive to earn too much money is even greater. For a 55 year old couple it is huge. If they earn $62,040 or less annually they would receive a $13,572 in welfare payments to pay the monthly premium on their Bronze Obamacare plan to reduce their monthly premium payments from $1,342 a month down to $211 a month. If they earn $62,041, they lose the welfare payments totaling $13,572 annually. The government calls it a subsidy, but it is welfare pure and simple. And this is for a plan that has a $12,700 deductible before it pays penny one in benefits. Who would buy such a plan without the welfare that goes with it as without it before you received benefit $1, you would be out of pocket $28,804 every year. Ouch!

According to, if you are a couple in your 30s, earning more than $62,040 will cost them about $4,000 in welfare lost as their income crosses that 400 percent of the Federal poverty level. If that same couple were in their early 60s their loss in health care welfare subsidies for crossing 400 percent of the poverty level ($62,040) will be about $20,000 a year until reaching 65, Medicare age. The big question is why is there any welfare for a couple making anywhere close to $62,000?

The bottom line will be that there will be still a large percentage of uninsured, insurance costs will have gone through the roof, more people will work less, the American standard of living will decline and it will be the biggest increase of welfare in the history of the country. If you think our national debt is big now, just wait about five or ten years as this new welfare entitlement eats America alive.

Larry Weitzman is a resident of Rescue.

Larry Weitzman


Discussion | 19 comments

  • Ernie LouisFebruary 21, 2014 - 12:54 pm

    I hope you sent copies to your elected representatives. It’s time they get off their hands and participate in the process of representing their constituents. Ernie Louis

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  • Dink LaneFebruary 21, 2014 - 1:39 pm

    You got to love it when an 'elite' pretends to be part of the working force...... Hey, Larry.... (1.)...Making $62,000--Couple (Both working ~ $15/hr each..... One working ~ $29/hr).... I would have LOVED to pay ONLY $4000 in healthcare..... When I worked at $20 some / hour.... I paid more than $9000 .... Working people are paying $4000 would be a drop........ But then .....Larry you were a Lawyer..... the closest you got to a paycheck was writing one for your secretary....... (2.).... Your MADE-UP #s..... "cost the equivalent of about 2.5 million jobs" ..... is not supported by actual Economists (FOX and Glenn Beck do not count no matter how many times Breibart and RollCall repeats it.) or even the CBO...... But it's not about OUR health care is it?..... It's about your Anthem-Blue-Shield kickbacks....

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  • cookie65February 25, 2014 - 11:22 am

    Twice now my comment made in this space has been deleted. NO other act displays the reality of leftism than such actions. Book burning thought police tyranny. So this is my third posting. TYPICALLY A SYMPTOM OF MENTAL DISORDER. de·lu·sion /diˈlo͞oZHən/ noun noun: delusion; plural noun: delusions 1. an idiosyncratic belief or impression that is firmly maintained despite being contradicted by what is generally accepted as reality or rational argument, typically a symptom of mental disorder

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  • cookie65February 24, 2014 - 7:32 am

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  • rodFebruary 24, 2014 - 7:45 pm

    good link... the picture... what a smarmy bastard. The media propping up Obama and the complete failure of obamacare cannot be 'fixed' because the entire medical aspect of treating a huge increase of poor who don't pay anything and doctors boycotting Medicaid cannot function, yet they don't seem to grasp that fact. So there must be another reason to perpetuate an economic DISASTER. The entire original premise of 'helping' 15% is certainly upside down now... and growing worse. I really wonder how this will shake out when 50% of Americans have no official insurance? Third world countries pay with cash to get anything close to reasonable medical treatment. Can't wait to see what happens next. What FOOL is going to pay for these new outrageous premiums and deductibles for rationed healthcare? San Carlos Mehico is lookin better all the time.

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  • cookie65February 25, 2014 - 4:59 am

    Rod, did you see where the FAA is going to lower the standards for air traffic controllers to create a more diverse workforce? If you had nightmares about the insanity of leftist think you would be afraid to go to sleep.

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  • rodFebruary 25, 2014 - 7:01 pm

    Six months ago The FAA was closing towers and dumping ATC personnel because of sequestration !!! ???

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  • Just curiousFebruary 24, 2014 - 12:11 pm

    Hey Larry, Are convicted felons covered by ObamaCare?

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  • Questioning the Insanity of ObamacareFebruary 24, 2014 - 1:17 pm

    I have already seen the effects of what they're calling "job lock" -- which means that you don't have to necessarily work full-time to keep your benefits. Hey, you might decide to be an artist and don't they deserve free medical care?! Here are 2 real-life examples for those of you who think this is being made up. My two window washers, sisters in their early 60s who didn't work a lick until they were 55 -- they lived with their dad!-- told me they are reducing their hours so they qualify for Medicaid. And my neighbor here in Pollock -- he didn't work for a decade, and he's now 61. Not disabled, just didn't feel like it and lived off his savings. Guess who just qualified for Medicaid? My insurance is costing me $600/month, DOUBLE what it was pre-Medicare. Wait a second-- here's a third, the pole taker at Safeway a few days ago. He gets Medicaid and he thinks that medical care should be 100% for everyone. He actually said this, "I don't care if getting rid of insurance costs millions of jobs. Everyone should have free health care." Really? And those of us who work 60 hours a week should also have the same type of housing as those who refuse to work 40+hours a week, huh? And free phones? And dental care? And child care for our children? And housing! It is truly mind-boggling. Imagine if those of us who are footing the bill for this just decided to hang out in front of the t.v. and wait for our checks. In free housing, of course. With internet because, by gosh, everyone should have access to that!

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  • Fran DuchampFebruary 24, 2014 - 1:53 pm

    Visual and performing artists are self employed and everything..they fill out tax forms just like everyone else--they even used pens--instead of paintbrushes or sticks...after they are through playing in the mud outside or dancing through the flowers. They are both liberal democrats and conservative republicans--and some are even very conservative democrats. I would imagine some of the country singers carry an NRA card. Yes these artists should be entitled to what all americans are entitiled to--why would any one think they should be excluded.

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  • Questioning the Insanity of ObamacareFebruary 24, 2014 - 3:04 pm

    Fran, you misunderstood me. What I was referring to was an article that said that people oughta be able to quit their day jobs and do things like become an artist -- and still keep their same benefits (those typically earned by full-time workers and not by part-timers). I'm arguing against the opinion that you should be able to do whatever the heck you want --including not work at all -- and still get the same benefits and have the same standard of living as those who are up and off to a job every day. One of the benefits of decent (non-grunt work) employment are, in fact, paid benefits. I work part-time nowadays and am not yet Medicare age. I don't get benefits from my job. I have buy them. I didn't mean to disparage artists at all, so I"m sorry you took it that way. Really, no offense was meant at all. One of my dearest non-Pollock friends is a full-time professional artist (a painter) who has supported herself and her son that way for decades.

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  • KellyFebruary 24, 2014 - 3:08 pm

    Larry I think you should be ashamed of the columns you write. Of course we know the type of people who distort the truth.

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  • SmellyFebruary 24, 2014 - 7:51 pm

    Truth hurts huh?

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  • cookie65February 25, 2014 - 4:57 am

    If you like your plan......

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  • cookie65February 25, 2014 - 5:06 am

    Hey Larry, no participation ribbon for you.....go stand in the corner...

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  • Robert D NollFebruary 24, 2014 - 7:58 pm

    highway one or 395 and keep the sun in front of you,twelve hours later and you will have nothing to complain about

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  • cookie65February 25, 2014 - 5:11 am

    Except for holder and obama's illegally trafficked assault weapons in the hands of drug lords.

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  • JohnFebruary 25, 2014 - 8:55 pm

    Right below the column is a statement that 'Larry Weitzman is a resident of Rescue'. Considering the fact that he was convicted of laundering money for a drug cartel, why isn't he resident of a penitentiary?

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  • Jack MartinFebruary 25, 2014 - 10:23 pm

    Add to the excellent report from Mr. Weitzman, a report to Congress was released last week from the Center for Medicare and Medicaid Services. What's in it? Of the 18M people employed by companies with 99 or fewer employees, nearly 2/3 of them (11M) will see their rates increase. Call me a liar? It's not MY report:

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