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PanAm Post: Why Trumpcare Is Far Worse Than Obamacare

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(From The PanAm Post)

Obamacare is a clear example of Ludwig von Mises’ famous adage that government interventions necessitate more and more interventions to fix the problems they create. The fact that the ACA’s provisions are all intertwined is also clear. To avoid an even bigger disaster, all of them need to be repealed at once. But for reasons that are very likely political, the Republican establishment has chosen a weak and compromised bill which  keeps the requirements for preexisting conditions and community ratings, but does does away with the individual mandate. In other words, the ACHA removes Obamacare’s funding mechanism, but keeps the requirements that made it necessary in the first place.

In the individual mandate’s place is a mandatory 30% surcharge, payable to insurance companies, for those who go without coverage for a prolonged period of time and then choose to purchase another plan. This surcharge is wholly insufficient to fulfill its purpose. Whereas the individual mandate punished people for not purchasing insurance, the surcharge punishes people who’ve decided they do want to buy it. It provides people with very little incentive to continue paying their huge premiums while they’re healthy. Insurance providers simply couldn’t survive in such a distorted environment.

The GOP’s sacrifice of principles for votes will likely result in a loss of both. If the ACHA passes as is, the health insurance market would collapse in an even more rapid death spiral, and this time the Republican party will be on the receiving end of the political blowback.  Indeed, the ACHA’s inevitable failure would create the perfect political environment for a push towards a single payer system. The left will undoubtedly frame the ensuing chaos as to blame deregulation and the free market, when it truly lies in Obamacare and the Republican party’s spinelessness to propose a proper repeal.

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Source: http://www.againstcronycapitalism.org/2017/03/panam-post-why-trumpcare-is-far-worse-than-obamacare/


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