Why Obamacare is Now Worse Than It Was
Even though Trump and the Republicans haven’t delivered on their promise to repeal and replace Obamacare, it’s clear Trumpcare would have been a slight improvement over the former. However, a truly successful bill would have been repeal and then … nothing. The main goal of any proposed legislation should have been to remove the government from the healthcare market place completely and allow market forces and competition to take back control of cost and quality.
But neither option materialized last week with Republicans lacking support for Trump’s replacement plan. Now the President and his advisors are saying they’re done with healthcare reform after threatening hold-out Republicans with cuts to campaign funding. It’s a tactic Trump brought to the bargaining table as an example of his self-proclaimed deal-making prowess. But this type of “my way or the highway” approach was a big gamble that didn’t pay off, making future threats even less effective.
In a recent interview on RT News, Peter Schiff notes the fallout from this latest loss, as Trump and Republicans are now stuck with Obamacare for the “foreseeable future,” according to House Speaker, Paul Ryan. The most impactful result for businesses is that Trump has signed away the individual mandate but kept the regulation for employers. Peter explains:
“What Trump is doing by not enforcing the penalties for people who don’t buy insurance, that is going to cause even fewer people to buy it. Insurance premiums are going to start rising even faster under Obamacare now than they did before. That’s going to be a bigger problem for employers who are still required to provide it. They’re going to have to start cutting pay or cutting workers in order to deal with a faster escalation in insurance costs.”
So while Obamacare is bad and Trumpcare only slightly worse, what Americans are now left with is a stripped ACA with no teeth to keep premiums from rising as quickly while continuing to burden businesses. Young and healthy people have no incentive to buy insurance, despite the penalty often being cheaper than premiums. As more people drop out, premiums will increase for everyone. It’s a nightmare scenario that comes with socializing healthcare, one eliminated by market competition and defining insured groups only by who can afford to pay, not by giving people something for nothing.
“It’s unfortunate that the Republicans couldn’t come up with a straight repeal of Obamacare, and then gone forward with real healthcare reform, free market reform that would have got the government out of healthcare and free market forces back in so we can drive down costs and drive up quality and stop demagogue-ing it.”
Highlights from the show:
“Now that the Republicans have the Congress and the White House, they don’t care about fiscal responsibility. They just want to run up as much debt as they need to in order to payoff their constituents.”
“Obamacare is going to die it’s own death. What Trump is doing by no enforcing the penalties for people who don’t buy insurance, which is going to cause even fewer people to buy it. Insurance premiums are going to start rising even faster under Obamacare now than they did before. That’s going to be a bigger problem for employers who are still required to provide it. They’re going to have to start cutting pay or cutting workers in order to deal with a faster escalation in insurance costs.”
“Obamacare is going to end one way or another. It might be better that it dies of its own accord than being replaced by a rebranded Republican version. The Republican version wasn’t going to work either…It still might be better to go down with this ship because it might mean it’ll be easier to have a market based-solution as opposed to socialized medicine, which I think is what would happen if we went to the Republican platform and then that thing blew up.”
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