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Sunday, July 1, 2012

Another Reason To Declare Independence from Obamacare SCOTUS Disaster

Many have weighed in on the Supreme Court decision on ObamaCare much better than I could. Two of the best were Rush Limbaugh’s and Mark Levin (download the June 28th show for free and share it widely). But a few things remain unmentioned as far as I can tell.

First, the SCOTUS decision means the low-income uninsured won’t likely see any change to their status.

How is that? How can a law designed in large part to help the poor obtain insurance, a law that taxes and spends so much, end up with no real change? Because the one ”bright spot” of the ruling was on the matter of Medicaid expansion.

Medicaid is the joint federal-state health insurance program for the poor, in which both governments split the cost. ObamaCare mandated states accept more federal money and expand eligibility to ensnare a larger number of Americans in this dismal government-run plan. But along with that mandate for the states to spend hundreds of millions more than they can afford, the law included a penalty for states that didn’t expand the Medicaid eligibility – the loss of all federal Medicaid money. Essentially it was a choice between spending more money that states don’t have or receiving no federal money, yet still being obligated to provide Medicaid.

The Supreme Court rejected that provision. It said states can be offered the option but can’t be forced to accept the expansion money, nor to extend Medicaid to people who don’t currently qualify. Given many states are going broke now, and Medicaid is their largest expenditure already, it’s highly doubtful many will spend more on this program.

So, given Medicaid was a key component to extending coverage to all Americans under ObamaCare, and given it’s now dead or at least an unlikely option, the uninsured near-poor – the people this whole mess was designed to help – won’t be getting Medicaid. Since they also probably won’t soon earn enough to buy insurance on their own, they finish right where they started – in no-man’s land.

Middle-class Americans without insurance will have to pay an Obama Tax that will grow with each passing year. The near-poor were exempted from the tax, but they won’t get insurance either.

Given the ease – relative to the rest of the world – with which Americans can move up the economic ladder, many will work at jobs that can’t afford to provide insurance under ObamaCare and are too small to be required to provide it. But those jobs will pay enough so employees eventually will qualify for the Obama Tax. So, just as these near-poor approach some semblance of economic security, the IRS (which Obamacare empowered to enforce the Obama Tax) will be right there to whack them back down.

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