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July 3: The Day Big Government Finally Imploded

Photo Credit: Douglas JonesMark July 3, 2013, as the day Big Government finally imploded.

July 3 was the quiet afternoon that a deputy assistant Treasury secretary for tax policy announced in a blog post that the Affordable Care Act’s employer mandate would be delayed one year. Something about the “complexity of the requirements.” The Fourth’s fireworks couldn’t hold a candle to the sound of the U.S. government finally hitting the wall.

Since at least 1789, America’s conservatives and liberals have argued about the proper role of government. Home library shelves across the land splinter and creak beneath the weight of books arguing the case for individual liberty or for government-led social justice. World Wrestling smackdowns are nothing compared with Hayek vs. Rawls.

Maybe we have been listening to the wrong experts. Philosophers and pundits aren’t going to tell us anything new about government. The one-year rollover of ObamaCare because of its “complexity” suggests it’s time to call in the physicists, the people who study black holes and death stars. That’s what the federal government looks like after expanding ever outward for the past 224 years.

Even if you are a liberal and support the goals of the Affordable Care Act, there has to be an emerging sense that maybe the law’s theorists missed a signal from life outside the castle walls. While they troweled brick after brick into a 2,000-page law, the rest of the world was reshaping itself into smaller, more nimble units whose defining metaphor is the 140-character Twitter message.

Read more from this story HERE.

Obamacare: States Want a Delay, Too

Photo Credit: George Ruhe‘I wish we had one more year:’ States are struggling to launch Obamacare on time

By Sarah Kliff. Facing tight deadlines and daunting workloads, states across the country are scaling back ambitions for implementing the Affordable Care Act.

At a monthly board meeting of Connecticut’s health insurance exchange, members of the standing-room-only crowd got a reminder that they, too, were behind schedule. The insurance marketplace they were working on nights and weekends won’t be completely ready on time.

“It is highly complex, it’s unprecedented and it’s not going to be smooth,” Kevin Counihan, chief executive of the state’s exchange, Access Health CT, told the group.

That’s why Connecticut — like other states across the country — has lowered the bar, doing what it can in the time it has left before the health-care law’s major programs are launched Oct. 1.

Although the states are promising to provide new marketplaces for individuals to compare and buy health insurance plans, the Web portals will be a bare-bones version of what was initially envisioned. Read more from this story HERE.

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Photo Credit: Karen T. BorchersCBO: Obamacare Delay Will Cost Feds Billions

By Tony Pugh. The Congressional Budget Office estimates the federal government will lose $10 billion in employer penalties in 2015 because of the delayed enforcement. Likewise, many expect that federal outlays to help low- and moderate-income people purchase coverage will grow with employers no longer required to provide coverage next year.

“At a minimum, the federal revenue from fines is gone. More realistically, the costs of already bloated insurance subsidies will escalate and the red ink will rise,” said Douglas Holtz-Eakin, president of the American Action Forum, a conservative think tank.

Jon Gruber, an MIT economist who helped design the federal health law, said the decision to forego the $10 billion in penalties was both pragmatic and political.

“Basically, it was their judgment that it was causing too many logistical and political headaches and it wasn’t that essential to the law, so they decided to just delay it a year and live with the revenue loss,” Gruber said Wednesday.

Obama officials said as much on Tuesday, when they announced plans to “revamp and simplify” the process of reporting the status of employee coverage and calculating appropriate penalties. “We will convene employers, insurers and experts to propose a smarter system and, in the interim, suspend reporting for 2014,” said White House special adviser Valerie Jarrett. Read more from this story HERE.

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Photo Credit: Saul Loeb/AFP/GettyObama Skips Past Congress Again With Health Mandate Delay

By Steven T. Dennis and Matt Fuller. President Barack Obama’s latest legal end run around Congress — delaying enforcement of the employer health mandate — has sparked more questions about whether he’s abusing his executive discretion under the Constitution.

The move announced late Tuesday was the latest in a string of decisions where the president, facing a divided Congress unable to get much done beyond keeping the government running, has taken matters into his own hands.

Where a previous president might have asked for a legislative fix if a mandate was proving too onerous for business, the Obama administration put out a couple of blog posts saying that, in listening to the business community, it decided not to enforce a key part of the 3-year-old health law for another year.

The administration notes that parts of laws are delayed in implementation all the time — including various pieces of the tax code.

A Treasury official said the administration has “longstanding administrative authority to grant transition relief when implementing new legislation like the ACA.” Read more from this story HERE.

Lipstick on the Obamacare Pig

Photo Credit: SUZANNAH HOOVER

Photo Credit: SUZANNAH HOOVER

By Stephen F. Hayes. It’s been one year since the Supreme Court decision that allowed Obama administration officials to begin implementing the Affordable Care Act, and the frequency and volume of reports about the challenges facing those reforms—and the difficulties they are visiting on those who were supposed to benefit from them—are increasing dramatically.

Jeff Vernon, an employee of Scrambler Marie’s restaurant in Toledo, Ohio, told a local reporter that the owners were cutting his hours to avoid penalties under Obamacare. Businesses with more than 49 employees have to offer insurance to all “full-time” workers—defined as those who put in 30 hours or more each week. The result, for Vernon: $400 less in take-home pay every month. “That leaves me $27.50 for two weeks to live off of,” he explained. Vernon said the owners tried to avoid the cuts but didn’t have any other recourse. “They were real good about that,” he added. “The last thing they wanted to do was cut people. They don’t want to fire anybody.”

Other business owners haven’t been able to avoid eliminating jobs. A Gallup poll taken in June found that nearly one in five small businesses—19 percent of those surveyed—have cut workers “as a specific result of the Affordable Care Act.” The same poll, first reported by CNBC, found that 41 percent of those interviewed had suspended hiring because of Obamacare. The poll of 603 business owners with less than $20 million in annual sales also found that 55 percent believe Obamacare will lead to higher health care costs, while just 5 percent saw future cost savings.

The steady stream of negative stories in recent months is one reason the Obama administration is preparing a massive public relations campaign to promote the launch of health care exchanges on October 1, 2013—which is fewer than 100 days away. The administration is seeking to enlist high-profile athletes and celebrities to sell Obamacare and its alleged benefits. Kathleen Sebelius, secretary of health and human services, told reporters last week that HHS officials are working with major American sports leagues on the campaign. Read more from this story HERE.

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Obamacare ‘is still unconstitutional’ one year after Supreme Court approval

By Rand Paul. One year ago, the Supreme Court upheld a law that radically transforms our health care system in a way that continues to frighten and beleaguer most Americans.

Friday is the one-year anniversary of the Supreme Court’s ruling upholding the Affordable Care Act, popularly known as Obamacare. The 5-4 decision declared that the federal government could force Americans to buy health insurance — not just any insurance, but insurance covering procedures dictated by the federal government. Obamacare established a labyrinth of red tape and bureaucracy, colossal even by Washington standards, and most important — penalizes the uninsured through the individual mandate.

Writing the majority opinion, Chief Justice John G. Roberts Jr. declared that the individual mandate could be considered a tax and that the power to tax was also the power to enforce the law. Dissenting Justices Antonin Scalia, Anthony M. Kennedy, Clarence Thomas and Samuel Anthony Alito Jr. vehemently disagreed, writing in their dissent: “[W]e cannot rewrite the statute to be what it is not. [W]e have never — never — treated as a tax an exaction which faces up to the critical difference between a tax and a penalty, and explicitly denominates the exaction a ‘penalty.’”

I think that Obamacare is still unconstitutional. I still think that Justices Scalia, Kennedy, Thomas and Alito got it right.

One year later, the federal health care law is even more concerning. In addition to potentially causing upward of 20 million Americans to lose their private health insurance policies, it could destroy an estimated 800,000 jobs. Read more from this story HERE.

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NFL says no to promoting Obamacare

By Sandhya Somashekhar and Lenny Bernstein. The National Football League is used to big, bruising battles. But on Friday, it announced that it was likely staying out of one of the roughest fights in Washington: the war over Obamacare.

Earlier this week, Health and Human Services Secretary Kathleen Sebelius disclosed that the administration was in talks with the sports organization to help promote the law, which enters a new phase as advocates prepare to begin enrolling millions of Americans in health insurance this fall.

On Friday, Republican leaders in the Senate issued a stern warning to sports organizations not to partner with the administration on an issue marked by such “divisiveness and persistent unpopularity.”

Asked about the congressional letter, NFL spokesman Greg Aiello said the league had not made any commitment to the administration. “We have responded to the letters we received from members of Congress to inform them we currently have no plans to engage in this area and have had no substantive contact with the administration about [the health-care law’s] implementation,” he said in an e-mail.

The NFL’s decision is the latest blow to the administration over the health-care law, which faces enormous hurdles as key portions go into effect in the coming months. Chief among the challenges is the political opposition to the law, which has persisted since its passage in 2010 despite hopes on the part of advocates that it would eventually be accepted as the law of the land. Read more from this story HERE.

Affordable Care Act to be Unaffordable to Many Low Income Employees

Photo Credit: Leader Nancy Pelosi

It’s called the Affordable Care Act, but President Obama’s health care law may turn out to be unaffordable for many low-wage workers, including employees at big chain restaurants, retail stores and hotels.

That might seem strange since the law requires medium-sized and large employers to offer “affordable” coverage or face fines.

But what’s reasonable? Because of a wrinkle in the law, companies can meet their legal obligations by offering policies that would be too expensive for many low-wage workers. For the employee, it’s like a mirage — attractive but out of reach.

The company can get off the hook, say corporate consultants and policy experts, but the employee could still face a federal requirement to get health insurance.

Many are expected to remain uninsured, possibly risking fines. That’s due to another provision: the law says workers with an offer of “affordable” workplace coverage aren’t entitled to new tax credits for private insurance, which could be a better deal for those on the lower rungs of the middle class.

Read more from this story HERE.

Obamacare Will Bring Drug Industry $35 Billion In Profits

Photo Credit: AFP/Getty Despite expiring patents on blockbuster drugs and a wave of new regulation from the Affordable Care Act that will cost drug makers, the pharmaceutical industry will reap between “$10 billion and $35 billion in additional profits over the next decade,” a new analysis shows.

The health law, which will bring millions of uninsured Americans health benefits beginning in January 2014, will be a critical boon to pharmaceutical industry balance sheets, increasing revenue by one-third by the end of the decade, according to a new report from research and consulting firm GlobalData of London. That means the U.S. pharmaceutical industry’s market value will mushroom by 33 percent to $476 billion in 2020 from $359 billion last year…

“The (Affordable Care Act) represents a dramatic transformation in the fortunes of pharmaceutical companies in what is the world’s largest market for prescription drugs,” said Joshua Owide, head of GlobalData’s industry dynamics team in a statement to Forbes. “This reform was inevitable in the US, and while a number of the changes will negatively impact pharma’s fortunes, the overall balance could be positive, thanks to an additional 32 million formerly uninsured citizens becoming potential customers, resulting in up to $115 billion of new business over a period of 10 years.”

Read more from this story HERE.

House Votes to Fully Repeal Obamacare

Photo Credit: Daily Caller The Republican-controlled House voted Thursday to repeal the Affordable Care Act in its entirety.

With implementation of Obamacare set to begin later this year, the vote is largely symbolic. The Senate is highly unlikely to even take up a vote on repeal.

The House voted for repeal 229-195, with votes cast almost entirely down party lines. Two Democrats voted with Republicans in favor of repeal: Rep. Jim Matheson of Utah and Rep. Mike McIntyre of North Carolina.

This is the third time the House has voted to fully repeal Obamacare, and there have been a number of other votes to repeal parts of it — 37 votes in total.

Boehner explained last week that he was holding the vote again because new members had been asking for the opportunity to vote on repeal.

Read more from this story HERE.

It’s Easier to Apply for Green Card than Obamacare

Photo Credit: Keith Williamson

If you thought nothing could be more tedious than filling out your tax forms, just wait until you try to apply for health insurance through the Affordable Care Act’s new exchanges.

The draft of the paper application is 15 to 21 pages, depending on whether someone is applying individually or for their family. See the Application for Health Insurance

And the instructions for the application run no less than 61 pages. That’s nearly six times longer than the instructions for a green-card application. (There are also videos of the process.)

“If you like IRS forms, you’re going to love this one,” says Ken Hoagland, chairman of Restore America’s Voice, a conservative organization that advocates for the repeal of the health-care law. “These are the kinds of things that are going to drive people crazy.”

Adding to the confusion from this new bureaucracy is that experts say most Americans are still largely in the dark about what the health-insurance exchanges — the new marketplaces for individual insurance stipulated by the health-reform law — even are. Though government officials are hurrying to set them up before open enrollment for 2014 begins this fall, a survey released today by InsuranceQuotes.com found that 90% of U.S. consumers don’t know that the exchanges open Oct. 1, and 22% said they thought the exchanges were already open now.

Read more from this story HERE.

Federal Agency To Enforce Obamacare In Four States Refusing Implementation

Photo Credit: AP

At least four states won’t enforce new sweeping insurance market reforms rolling out next year with the health law — leaving federal health officials in Washington to pick up the slack, yet another wrinkle in Obamacare implementation.

Insurance regulation is a huge responsibility that’s been closely guarded by the states. That’s why the Obama administration and those closely watching the rollout of Obamacare believe that even states that have sworn off the law’s coverage expansions will still enforce its new measures — including new benefit mandates, cost-sharing guidelines and rules on how insurers rate customers — to retain control over their health insurance markets.

But the feds will be overseeing the health care law in Missouri, Oklahoma, Texas and Wyoming after those states told HHS they couldn’t or wouldn’t implement the new rules.

“We are enforcing because Oklahoma notified … that it has not enacted legislation to enforce or that it is otherwise not enforcing the Affordable Care Act market reform provisions,” Gary Cohen, director of the federal Center for Consumer Information and Insurance Oversight, wrote to the Oklahoma Insurance Department on Friday. Officials in Missouri, Texas and Wyoming received similar letters, an agency spokeswoman said.

The enforcement letters come a little more than a month after a Commonwealth Fund report found just 11 states and Washington had started to adjust state laws to prepare for seven major ACA insurance reforms taking effect in 2014.

Read more from this story HERE.

Sen. Hatch: Left Conspired to Ensure Obamacare Fails So That Government Takes Over All of Healthcare (+video)

Photo Credit: AP

Sen. Orrin Hatch (R-Utah) said Democrats set up the Affordable Care Act, popularly known as Obamacare, to “fail” in order to establish a single-payer health care system, “where the government controls everybody’s lives.”

“Let’s just be honest about it, the bill hasn’t triggered yet fully,” Hatch said of Obamacare, during a press conference on Capitol Hill on Wednesday. “And it doesn’t until the 1st of next year.”

“When the young people in this country find out that they are going to be the generation of debtors and there’s no way they’re ever going to get out from underneath this kind of stuff—I’ve got to tell you, people don’t even realize how crushing it’s going to be after the 1st of this next year,” he said.

“And I’ll predict that within that year—now I may be wrong on this—but within the immediate future the Democrats are going to throw their hands in the air and say, ‘It’s not working. It’s unaffordable. And we have to go to a single-payer system,’” Hatch said, adding, “where the government controls everybody’s lives.”

“That’s what’s behind all of this. And they know it’s going to fail,” he said. “It’s already failing, and it hasn’t even triggered yet, the big expenses.”

Watch video here:

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Rep. Paul Ryan: House Budget Will Assume the Repeal Of ObamaCare

Photo Credit: Gage Skidmore

House Budget Committee Chairman Paul Ryan (R-Wis.) on Sunday said he will not back down from the battle to repeal the 2010 Affordable Care Act even though some Republicans think the party should move on.

Ryan dismissed criticism that House Republicans have virtually no chance of dismantling the signature legislative accomplishment of Obama’s first term and their efforts might be better expended elsewhere.

He said his budget assumes the repeal of the healthcare law, in an interview on “Fox News Sunday.”

When host Chris Wallace challenged him on that assumption, Ryan said he would not give up the fight.
“That’s not going to happen,” said Wallace.

“We believe it should,” Ryan shot back. “That’s the point. This is what budgeting is all about. It’s about making tough choices to fix our country’s problems. We believe ‘ObamaCare’ is a program that will not work.

Read more from this story HERE.