How many waivers will it take before Obamacare considered failure?
It seems everyone with any shwag is getting a waiver for Obamacare now-days. What is a waiver from Obamacare you ask? Well, in its effort to create awesome health care benefits out of pixie dust and rainbows, the new health care law compels privately-owned insurance providers to give at least $2 million in annual benefits to insureds by 2013. Well that sounds like a great idea! Unlimited insurance benefits for all!
It turns out that there’s a small problem with requiring companies to provide a certain level of coverage to all insureds though. It’s called reality. A company like McDonald’s, for example, provides some health benefits for its low-wage workers because the premiums aren’t terribly high…so it’s affordable. Do you think $2 million a year is going to be affordable? Probably not. Hence the waivers.
The waivers allow health insurance plans to limit how much they will spend on a policy holder’s medical coverage for a given year. Under the new health care law, however, such annual limits are phased out by the year 2014. (Under HHS regulations, annual limits can be no less than $750,000 for 2011, no less than $1.25 million in 2012 and no less than $2 million in 2013.)
So far, 222 organizations have been granted waivers from having to comply with Obamacare. The most recent: three local chapters of the Service Employees International Union (SEIU). No, this isn’t about unions per se. Fact it, lots of large companies and charitable organizations have been issued waivers. The purpose of this post is to simply inquire into whether Obamacare can be defined as a good thing if no one can afford to comply with it (I know, this question often vexes liberals)?
Let’s face it…the new health care law is an entitlement program whose purpose is to provide good healthcare, at a cheap cost, to those deemed most at risk. Unfortunately, good healthcare at a cheap cost doesn’t exist in the real world. So, what needs to happen? Well, first, the big political donors need to be satiated. Hence specifically exempting them from the law. Second, those low-wage employees of the big political donors will need to be subsidized in some way by the government. Why? Because if Obamacare results in janitors not receiving the same annual insurance limits of everyone else, even the libs will admit failure.
You see, there is no such thing as a free lunch. A company can’t survive by offering cadillac plans to everyone, and not charging appropriate premiums to everyone. An insurance provider can’t afford to offer insurance to someone with heart disease who smokes five packs a day, while only requiring the premium of a healthier person. But the government doesn’t exist in the real world, and that’s why the end result of Obamacare will be a lack of private insurance providers offering benefits to everyone else.
But that’s the point, isn’t it?