Why the Obamacare ruling yesterday is important. The way that its set up is that it must be affordable. If a person cant afford it, they are provided with subsidies to make it affordable. The way that it was written was such that it forced the states to set up and manage their own exchanges. Only 16/50 set up their own exchanges with the others electing to bandwagon through the Federal exchange. That, according to the law, guess they should have read it before they passed it, isnt permissible. It was a bully tactic to force the states to engage it. They passed. Now, anyone thats enrolled in obamacare through the federal exchange isnt granted any subsidies. So it gets more expensive right?... Yes, but not just that! Without the subsidies, the 84% that went through federal exchange will see an astronomical increase in rates. Enough so, that it will be priced out of reach. The government set these rates high and then subsidized the difference. So what did they essentially do? The largest tax hike in history. Govt says the rate is 12,000 per year. Whats that? You can only pay 1,500 per year? Oh, okay we will use tax revenue from the US taxpayer to cover the rest! So, 10,500 ... *poof* The reason that it was so crucial for the govt to get the young people on obamacare was that they dont have a lot of money, obviously, and they are seldom sick. It was to be their job to create the bell curve, if you will, to keep these imaginary rates, which were inflated with no logical fiscal reason from increasing. .... Stay with me... So if the lack of subsidies causes these young people to fall off its a double whammy to obamacare. By merely falling off, they reduce the pool size, and the rates received. Secondly, by losing this particular demographic, it changes the whole complexion of risk matrix for obamacare leaving a disporprtionate number of sick people, or people that were otherwise uninsurable due to prexisting conditions. The weight of it will cause it to collapse in on itself. Yes, for those ahead of the game, obamacare was conceived to fail, but they arent ready for that yet. First: theres not enough people enrolled even at this stage for it to be considered too big to fail. Second: American sentiment towards government competence is very... Very low! After the debacle of this roll out and the subsequent scandals, theres no way they can sell trust us, were with the government and were here to help! Third: obamacare was passed when democrats owned both houses. There was no stopping this nightmare legislation. Republicans now have the house. Sure, you can expect some GOP to make pleas for it to be fixed (McConnell, Graham, et al) but theres no chance it passes the house. So for all of you that see the celebration of the court decision yesterday... Thats why all of the hoopla.
Posted on: Wed, 23 Jul 2014 17:54:47 +0000
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