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 Healthcare.gov, 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.