ObamaCare May Not Raise Enough Money To Pay For Itself

Affordable Care ActAgain this morning, I want to pivot away from Israel, Hamas, and the rest of the world that is in turmoil because of Islamic terrorists. Instead, I want to focus on another of President Obama’s prime achievements. According to him, that is. I would be speaking about ObamaCare. It is the monstrous legislation that only exists because the Democrats rammed it down our throats and Chief Justice John Roberts changed Webster’s Dictionary so he could vote to uphold the tax/penalty. I believe there is ample proof that the bill is a disaster. Nothing in it has worked as designed. From the website down to the tiniest detail, it is a colossal failure. And that’s before it is even fully implemented yet.

There were two main selling points used by Obama and the rest of his liberal friends to espouse the advancement of ObamaCare. They claimed it would make health care better and what’s more, they said it would pay for itself. Hmmm, care to venture a guess how either of those two talking points have worked out? First of all, anyone who claims health care is better because of ObamaCare is naive. How many thousands of families have lost their current coverage because it wasn’t good enough for ObamaCare? I’ve lost count of that number. Suffice it to say it is quite large. As far as ObamaCare paying for itself, that isn’t working as planned.

In a certain section of the legislation, language was inserted that would cause health care plans costing over $10,200 per worker to be taxed. It was called the Cadillac Tax because it taxed employers for providing benefits in their health care plan that were above and beyond what should be normally required. The irony of this is pure and simple. The authors of ObamaCare wanted to tax Americans for receiving too many health care benefits, while forcing them to pay for plans that included benefits they neither wanted or needed. Does requiring middle-aged men to pay for maturity care ring a bell? And the fallacy that the employees of these companies would not be saddled with the cost of this tax is so ludicrous, it should not have been considered a possibility.

As it turns out, what many of us predicted would happen is currently happening. Employers are doing what they have to do to avoid paying this ridiculous Cadillac Tax.

Fox News – A national business group representing the nation’s large employers reported Wednesday that companies desperate to avoid a 40 percent ObamaCare “Cadillac tax” are finding ways to shift the costs to workers.

The so-called “Cadillac tax,” now four years away, will affect health plans that spend more than $10,200 per worker.

“The excise tax, when it hits in 2018, will affect both employers and employees,”said Brian Marcotte, president of the National Business Group on Health.

The “Cadillac tax” was originally intended to take effect sooner, but unions and other groups convinced officials to delay it until 2018, reducing the anticipated income from $137 billion to $80 billion over ten years. But many analysts predict it will be far less than that.

Henry Aaron of the Brookings Institution said, before then, it’s expected that most of the businesses that offer that form of insurance will back off and make the insurance less generous, so the tax won’t bite.”

Robert Laszewski of Health Policy and Strategy Associates said he doubted many will end up paying the tax.

“What we’re finding is almost no employers are going to be hit by this ‘Cadillac tax.’ You’d be stupid to get hit by this ‘Cadillac tax,’” he said. “They’re all cutting their benefits right now.”

One analyst noted the tax had less to do with health care than it did with revenue.

“The ‘Cadillac tax’ is not about health care, it’s about the money.It’s about getting the money,” said Dan Mendelson of Avalere Health.

But if employers are able to avoid it and less than expected is collected, ObamaCare could fall tens of billions short in paying for itself as promised.

So, it seems ObamaCare and its supporters are caught between a rock and a hard place. Their beloved savior of the American health care system continues to be a major train wreck. Instead of saving health care, it is hurting it even more than it already was. Americans are caught in the middle, trying to determine if they have the proper coverage, if they will receive a federal subsidy, or if they will even have health coverage at all, once the smoke from this fire lifts away. All the while, it is beginning to look like ObamaCare will not raise enough money to even begin covering the cost of its implementation, much less the long-term costs. Care to guess what will happen then?

My bet is that higher taxes will be required to pay the bill. With tax and spend liberals, it is always higher taxes that are required. Americans like you and me will be the ones required to pay the aforementioned higher taxes. And all of a sudden, the Affordable Care Act is not so affordable.

Once again, we are reminded that the end game of ObamaCare was never to improve the American health care system. Instead, it is directed at bringing it down to its knees, to be replaced by something the liberals would deem better. Naturally, that would be a single payer health care system. From where I sit, it seems that plan is well on its way.

About LD Jackson

LD Jackson has written 2032 posts in this blog.

Founder and author of the political and news commentary blog Political Realities. I have always loved to write, but never have I felt my writing was more important than in this present day. If I have changed one mind or impressed one American about the direction our country is headed, then I will consider my endeavors a success. I take the tag line on this blog very seriously. Above all else, in search of the truth.

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