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  • Another Obamacare Failure

    On Friday, Secretary of Health and Human Services Kathleen Sebelius admitted that the CLASS program can’t work. After months of insisting that it could meet a 75-year actuarial soundness test and keep with the statutory requirements, Sebelius acknowledged that “despite our best analytical efforts, I do not see a viable path forward for CLASS implementation at this time.”

    The CLASS Act was a key provision included to pass Obamacare. It would have established a new, government-run long-term-care insurance program. But it was also used to claim that the health care law was paid for and would help bring down the deficit. From the beginning, Heritage warned that it was poorly designed and was included in the legislation primarily as a budget gimmick.

    • Completely unworkable. As designed, the CLASS program is entirely unworkable. The AP’s Ricardo Alonso-Zaldivar reports that “a central design flaw dogged CLASS from the beginning. Unless large numbers of healthy people willingly sign up during their working years, soaring premiums driven by the needs of disabled beneficiaries would destabilize it, eventually requiring a taxpayer bailout.” The result would be a classic insurance “death spiral,” where high premiums discourage healthy, low-risk individuals from participating. If high-risk individuals alone enroll, premiums would rise even higher.
    • A new and unaffordable entitlement program. CLASS would have created another entitlement program. Its broad eligibility standards would have made the impact of adverse selection even worse, further increasing premiums. Though Obamacare barred the use of general revenue to fund CLASS, eventually taxpayers would likely be left picking up the program’s growing tab under these conditions. Since Congress has yet to address the trillions in unfunded obligations under existing entitlements like Medicare, Medicaid, and Social Security, the last thing American taxpayers need is another insolvent entitlement program.
    • One of Obamacare’s many budget gimmicks. Finally, it is well documented that the CLASS program was included in Obamacare to reduce the impact that the law would have on federal deficit spending—on paper, at least. The final CBO score showed CLASS reducing Obamacare’s impact on the deficit by $70 billion over its first 10 years. But the revenues raised through CLASS premiums were double-counted. The revenues were seen as offsetting new spending, including a massive Medicaid expansion and a costly new subsidy program for health insurance. But these revenues were also intended to pay for CLASS enrollees’ benefits. Once beneficiaries begin to draw down the benefits, the premium revenues would quickly dry up.

    The Secretary’s letter carefully included the phrase “at this time,” leaving many to speculate what the Administration will do now. Those on the left are already gearing up to “fix” the statute to make CLASS work. But, Obamacare cannot be fixed. It must be repealed.

    Posted in Featured, Obamacare [slideshow_deploy]

    7 Responses to Another Obamacare Failure

    1. Do you think this was premptive before going to scotus. Getting rid of provision that rankled the most to show that they were willing to work and show how reasonable they are. Will Elena Kagan recuse herself.

      I'd like you to do some articles on the taxes that will be imposed if obamacare is not repealed

    2. steve h says:

      Got to love Heritage foundation getting called out in teh GOP debate last night about being the mastermind behind the individual mandate – the very same policy they now bash since Obama proposed it. Shining example of Heitage/conservative hypocrisy.

      • Bobbie says:

        Heritage didn't hide anything about their position regarding health care. HYPOCRITES DO!! Heritage doesn't control the government, BUT GOVERNMENT HYPOCRITES CONTROL US!

        What seemed like a good idea, Heritage came to realize wasn't and stopped promoting it. Don't be intimidated by integrity and don't be a supporter of government corruption.

        • curious says:

          "What seemed like a good idea, Heritage came to realize wasn't and stopped promoting it."

          Because a democrat endorsed it. Stop grasping at straws Bobbie…. Heritage is openly shameless.

          • Bobbie says:

            curious, there's no straws to grasp. It is what it is. I used to be a democrat until I realized what an deceiving, indecent, unruly, low life labeling, pity-party they are. Does that make me openly shameless or free to see reality as it really is?

            Living a good life off tax payers is denying your own intelligence. I have health issues the democratic party would love to exploit and by government conduct, ensures I'm entitled to a whole basket of goodies! After all it wasn't my fault I was born! I don't lower myself to that level. To be a burden on society is not a goal in my life nor does it make me free but puts me under the control of government!

            Don't you ever come to change your mind upon further research or do you just stick to your idea that complies only by conditioning minds to reach a 99% of a false perception? People live and die everyday! Government controlling the decisions could kill as they have come to an agenda not to the benefit of the people, but government only! They only speak of costs and nothing regarding the care itself! That's not trustworthy for reasonable minds. and it's extremely unethically unconstitutional. My request was to lower costs as was the claim behind this fraud! Costs have deliberately more than tripled for reasons of government only! Forcing future compliance to join the band of burdens. I like to be in control of my life until death, wishing all people had the same attitude as the majority of Americans once did. Free market keeps us healthier and safer AND takes accountability where this government refuses!

    3. Jason says:

      I agree that president Obama's changes will not be without their drawbacks (financially). To implement an overhaul of medical insurance practices it will cost money in the form of regulating the new laws and enforcing policy. Funding for this will be from people with an income over $250k per year which excludes you, I and just about every person we both know.

      For instance, part of his bill requires insurance companies to cover preexisting conditions. This is a huge flaw with current insurance companies because it provides a way for them to circumvent having to provide healthcare costs to people who have been insured.

      Another change is that he is forcing doctor offices to explain the charges to patients. I kinda feel like I'm going to a car mechanic anytime I visit a doctors office right now… I have spent $1,500 in a single checkup visit just to find out that I didn't have a hernia. I never received an itemized bill for the charges from the hospital except "you owe $1,500" and my medical insurance covered $0. I have gone through 3 different insurance carriers since.

      Since then, Allie has gone to the doctor office a couple times for women stuff and we have paid 100% each time out of pocket (her insurance is blue cross) around $300-400, typical women checkups should be covered. Basically any claim made on our part we have paid out of pocket and the insurance companies just send us a letter stating "not covered". Currently there are very few insurance companies due to "anti-compete" laws that the insurance industry has put in to effect. This allows them to provide shitty care because no one is their to compete with them.

      On the flip side, this new regulation reduces malpractice insurance costs on medical facilities which is one of the reasons that medical visits costs so much in the first place. Malpractice insurance premiums can be as much as $100k per year just to operate depending on the type of doctor office.

      I think what your experiencing right now is the insurance companies trying to fight the policy by dramatically increasing prices even though costs are pretty much the same. This will continue until the federal government puts Uncle Sams foot up their asses.

      In short, malpractice insurance increases hospital expenses, hospitals see that they aren't being regulated and don't need to supply upfront costs to patients (no reporting or itemization) so they overcharge the patients, insurance doesn't cover costs because they don't need to (no regulation) and no-one else is going to take over their business, the people (who pay for insurance) get screwed or simply don't pay (majority of Americans).

      Increase competition in the market and healthcare will get cheaper. Regulate the hospitals and they will stop the frivolous spending. If something is getting too expensive for Americans to afford it's because there isn't enough competition in the market plain and simple.

    4. GARY A HARRIS says:

      If we can't get rid of Obama-care… then let's get rid of congress and the senate… all of whom do nothing but collect their own entitlements, enormous salaries… and worst of all… retirement benefits… all for doing absolutely NOTHING…. OUR GOVERNMENT HAS GONE ASTRAY…

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