Written on Thursday, August 23, 2012 by Tad Cronn
So far, Obamacare has been nothing that was promised by proponents and everything that was warned against by opponents.
The latest twist of the knife is that the euphemistically named Affordable Care Act will be anything but affordable, and many of the people in the middle class who were waiting for their free health care will find themselves paying more for insurance through their employers or going without health care insurance altogether.
Really, no one should be surprised that any program of such scale which was voted on before it was even written should turn to disaster.
Now, some of the very congressional architects of that disaster are complaining about how things are working out because of the interpretation by the IRS and the Obama Administration of the law that appeared out of the backroom negotiations and secret deliberations they participated in.
According to the New York Times, under the rules proposed by the IRS, millions of working class people would be unable to afford family coverage from their employers, yet would not qualify for government subsidies under Obamacare.
Most Americans will be required to have health insurance by 2014. Middle- and low-income people can get tax credits and some other subsidies unless they have “affordable” care from an employer.
The IRS is interpreting “affordable” as costing less than 9.5 percent of an employee’s household income. The IRS figures the calculation as the cost only of individual coverage, not family coverage.
A family therefore could end up spending much more than 9.5 percent of its income on insurance, and the IRS would still consider it affordable, preventing the family from getting the various subsidies under Obamacare.
The likely result is that millions more people will go uninsured, the exact opposite of what the geniuses behind Obamacare thought they were doing.
This is exactly the sort of quandary foes of Obamacare predicted before its passage.
If the Administration requires businesses to increase coverage to include families, then the higher costs will inevitably add to more shutdown businesses, more layoffs or more businesses simply dropping health care benefits altogether and paying the cheaper fines/taxes to the government.
If the Administration changes the IRS rules and picks up the tab for more families, then that will drive up costs of Obamacare even further above what was planned by the health care plan’s supporters.
Long before Obamacare has even had a chance to pay anyone’s medical bills — if it ever will — its effects are being felt in terms of higher labor costs, greater inflation, more employees without health benefits, more unemployment and now the addition of entire families who will not be able to get benefits or coverage of any kind.
Because government has no incentive for efficiency, the only realistic way it can control costs of a program like Obamacare is through rationing. This rationing of benefits for middle-class families by the IRS is just the first round.
Wait until the death panels kick in.