Obamacare II: The sequel will be worse than the original

Byline: | Category: Above the Fold, Culture, Economy, Government, Taxes & Spending | Posted at: Wednesday, 13 November 2013

There are two consensus opinions that have formed about Obamacare:

1.  The website will not work this year.  Every “fix” of known flaws is going to expose (and perhaps even worsen) underlying flaws that haven’t yet been discovered because few people have gotten far enough into the website to discover them.

2.  The Obamacare law itself will need significant surgery and Democrats in particular are going to need for that surgery to have to happen very, very soon.

Not yet the consensus opinion, but soon will be, is that the second item is very much like the first:  attempts to “patch” flaws in the law, just like patching flaws in the code, will expose huge problems lurking beneath the surface.  When Nancy Pelosi said that we had to pass the 2,000+ page bill to see what was in it, what she could have said is that we’re going to have to actually implement it to really learn what is in there.  It won’t be pretty.

Now here’s some added Washington reality.  Between Thanksgiving and the New Year, nothing significant will happen in Congress.  Nothing.  Even as millions of Americans get Blue Cross pink slips, that won’t get in the way of Congressional Christmas parties and taxpayer-funded vacations to warmer climes.  Oh, sure, there will be the usual press conferences and photo ops; that never stops.  But real work–the kind that is done by armies of staffers and lobbyists who write these bills–that won’t happen.   This means that whatever can be done before or shortly after the fecal matter hits the rotary device on 1 January is going to have to be short and sweet.

Going back to the status quo ante bellum is not possible.  The plans that are dropping people by the millions no longer exist.  They can’t exist under the current law and the new laws under which they could exist, won’t be written by Congress and then implemented by the insurance companies for months.  Many months.  At this point there are only bad options and worse options.  Nothing government can do will forestall this problem.  In fact, every attempt will just make the overall problem worse and further entrench the disarray.

There is only one institution in the world, only one power, that has the ability to quickly react, and that is the free market.  Forget about Washington being able to solve the problem; they have neither the time nor the cognitive ability to diagnose the problem, much less, to fix it.  Instead all Washington should do is to default to the States.  Each of the states already has on their individual state codes, health care laws.  That’s how the bulk of the health care industry was regulated in the past–a past that was only six weeks ago.  With one exception, the Federal government should just get out of the way.  And that exception is that it should allow for cross-state portability.  That will do more than anything else to spur the market to provide health care solutions.  No minimum coverage requirements, no maternity care for 80-year old men, no 26-year old children on their parents’ plans.  Nothing.  Let people shop in any state to find the plan that fits them.  The market will quickly move in to meet most customers’ needs.  And while that won’t insure everyone, it will insure most of those who have been recently dropped or who physically can’t buy coverage now.

Will it happen?  Not a chance.  You see, there’s another Washington reality at work:  Never let a crisis go to waste.  And Democrats, as well as Republicans, adhere to that ideal.  Nothing so simple could disguise the payoffs and graft that Congress can’t wait to attach to the Omnibus package to “fix” Obamacare.  And that means that the fix will be long in coming and will only make matters worse.

Now go and have a Merry Christmas!  (Too bad it’s going to feel more like a Groundhog Day version of Halloween.)

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