Obamacare

The meltdown of the Obamacare mandate

Friday, February 07, 2014 by: J. D. Heyes
Tags: Obamacare, individual mandate, penalty tax

eTrust Pro Certified

Most Viewed Articles
Popular on Facebook
BACK INTO THE CLOSET: Why U.S. reporters are not allowed to write about rainbow events in nations where being gay is still condemned
Depopulation test run? 75% of children who received vaccines in Mexican town now dead or hospitalized
A family destroyed: Six-month-old dies after clinic injects baby with 13 vaccines at once without mother's informed consent
Biologist explains how marijuana causes tumor cells to commit suicide
Companies begin planting microchips under employees' skin
BAM! Chipotle goes 100% non-GMO; flatly rejecting the biotech industry and its toxic food ingredients
ECONOMIC SLAVERY FOR ALL: While we were distracted with the Confederate flag flap, Congress quietly forfeited our entire economic future via fast-track trade authority
INVESTIGATION: Three days before Dr. Bradstreet was found dead in a river, U.S. govt. agents raided his research facility to seize a breakthrough cancer treatment called GcMAF
NJ cops bust teenagers shoveling snow without a permit
Chemotherapy kills cancer patients faster than no treatment at all
McDonald's in global profit free fall as people everywhere increasingly reject chemically-altered toxic fast food
March Against Monsanto explodes globally... World citizens stage massive protests across 38 countries, 428 cities... mainstream media pretends it never happened
Italian court rules mercury and aluminum in vaccines cause autism: US media continues total blackout of medical truth
The 21 curious questions we're never allowed to ask about vaccines
SCOTUS same-sex marriage decision may have just legalized the concealed carry of loaded firearms across all 50 states, nullifying gun laws everywhere
Orthorexia Nervosa - New mental disorder aimed at people who insist on eating a clean diet
Vicious attack on Dr. Oz actually waged by biotech mafia; plot to destroy Oz launched after episode on glyphosate toxicity went viral
Nearly every mass shooting in the last 20 years shares one surprising thing? and it's not guns
Delicious
(NaturalNews) To say that the roll-out of Obamacare is not going well is perhaps the understatement of the year. But even more than that, those who predicted that the law would ultimately collapse on itself might have been prophetic.

In particular, the "individual mandate" - the part of the law that the U.S. Supreme Court upheld as a "tax" and which requires, for the first time in U.S. history, that Americans be forced to buy a product or service - is failing miserably.

According to public policy experts James C. Capretta and Jeffrey H. Anderson, writing recently in the New York Post, the Obama administration is finding out that it is harder than they expected to get Americans - especially the healthy, young Americans necessary to fund older, sicker Americans - to buy insurance, leaving many to wonder if the mandate will actually survive:

Last month, the administration announced that anyone with a canceled 2013 individual insurance plan would be exempt from the "individual-responsibility requirement" this year, and would be allowed to buy the catastrophe-only insurance previously offered to those age 30 or under.

This exemption is likely only the first of many. How, for one, can the administration exempt people who had insurance last year but not exempt people who were uninsured because they couldn't afford coverage?


The penalty (er, tax) is a better buy

It's a valid question, especially given the manipulation of a number of unpopular (or unworkable) provisions of the law made by the president and his Health and Human Services department since its passage and implementation.

According to Capretta and Anderson, the architects of the Affordable Care Act were always undecided and unsure about the mandate. For instance, they realized that compelling Americans to buy insurance was key to making the system function. However, fearing a backlash, they also decided to impose a fairly weak penalty for anyone who did not obey.

In the end, the law's designers wound up with a mandate that still "provokes resentment" from the populace, but which probably won't work anyway.

And there is that Supreme Court decision:

The U.S. Supreme Court weakened the mandate even as it was saving ObamaCare. The law's authors hoped that the mandate would create the perception that insurance enrollment is now obligatory, but the high court made it clear that Congress has no authority to institute such a requirement. The justices ruled that the mandate could stand only as an optional tax, not as a fine for noncompliance.

So in other words, anyone who decides to forego purchasing Obamacare coverage (that has turned out to be very overpriced or comes with unreasonably high deductibles) is not really breaking the law; they are merely making the legal decision to pay the fine/tax instead.

On average, that tax will wind up being far lower than Obamacare premiums for tens of millions of Americans, based on the figures that I have seen thus far and based on a new study by the 2017 Project, which has compared premiums in the Obamacare exchanges in the 50 most populous U.S. counties to the tax that households could be liable for instead.

So much for the 'carrot-and-stick' approach

"This year, that tax equals the greater of two numbers: 1) $95 per adult in a household, plus half of that amount for each child, up to $285 for an entire household, or 2) 1 percent of household income in excess of the tax-filing threshold ($10,150 for singles, and $20,300 for married couples)," the experts wrote.

That means, for example, that a 31-year-old single male making $30,000 in Columbus, Ohio, will face a tax of $198.50, which amounts to about $2,000 less than the least expensive option in the state's Obamacare exchange - and that includes his taxpayer-funded subsidy.

Meanwhile, for a 36-year-old San Diego woman who makes $40,000, the tax would be $298.50, or some $2,400 less than the cheapest California exchange policy (this woman would not be eligible for a subsidy).

"ObamaCare can't work if the young and healthy don't sign up in large numbers - yet the law creates a clear incentive for them to opt out," the experts write. "There's more: The law also guarantees that you can always choose to buy during the next annual enrollment period - so if you fall seriously ill and find that ObamaCare has become a better investment, you can buy it then."

The carrot-and-stick approach that the law's designers hoped would make it functional has failed, clearly.

Sources:

http://nypost.com

http://www.naturalnews.com

http://www.forbes.com

Explore more on Obamacare by searching on GoodGopher.com, the search engine for truth seekers.
Join over four million monthly readers. Your privacy is protected. Unsubscribe at any time.
comments powered by Disqus
Take Action: Support NaturalNews.com by linking back to this article from your website

Permalink to this article:

Embed article link: (copy HTML code below):

Reprinting this article:
Non-commercial use OK, cite NaturalNews.com with clickable link.

Follow Natural News on Facebook, Twitter, Google Plus, and Pinterest

Colloidal Silver

Advertise with NaturalNews...

Support NaturalNews Sponsors:

Advertise with NaturalNews...

GET SHOW DETAILS
+ a FREE GIFT

Sign up for the FREE Natural News Email Newsletter

Receive breaking news on GMOs, vaccines, fluoride, radiation protection, natural cures, food safety alerts and interviews with the world's top experts on natural health and more.

Join over 7 million monthly readers of NaturalNews.com, the internet's No. 1 natural health news site. (Source: Alexa.com)

Your email address *

Please enter the code you see above*

No Thanks

Already have it and love it!

Natural News supports and helps fund these organizations:

* Required. Once you click submit, we will send you an email asking you to confirm your free registration. Your privacy is assured and your information is kept confidential. You may unsubscribe at anytime.