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Tag Archives: ACA

Deductible Concept Sprung On Newly Insured

19 Saturday Jul 2014

Posted by Nuetzel in Uncategorized

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ACA, adverse selection, Deductible Shock, Obamacare, Unintended Consequences

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No, the monthly premium on your Obamacare coverage does NOT cover your deductible and copayments. You’re still on the hook for those bills. Apparently, that reality comes as a shock to many of the newly insured. And apparently, that reaction was unexpected by the drafters of the ACA as well as HHS, the state exchanges, and various organizations involved in the implementation of Obamacare. So, many of the previously uninsured, intended as the chief beneficiaries of the ACA, are feeling disillusioned, even jilted, by the terms of their coverage. As if the poor risk profile of enrollees weren’t bad enough, and amid continuing doubts about whether those purchasing coverage under Obamacare are actually paying their premia, the confusion among this constituency is a bad omen for the sustainability of the program.

Abortifacients and Hobby Lobby

01 Tuesday Jul 2014

Posted by Nuetzel in Uncategorized

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Abortifacients, ACA, Contraception Mandate, Corporate Form, Hobby Lobby, Obamacare, Supreme Court

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Some are apparently too lazy, propagandized or ignorant to understand the facts underlying the Supreme Court’s Hobby Lobby decision. But not too lazy to re-tweet or re-post unreliable information.

Here is what the decision means:

1) The decision was narrower than the sloppy memes and some media reports would have you believe. Of the 20 different contraceptives approved for use by the FDA, only four are affected by the decision. Hobby Lobby offers the other 16 through its employee health plan, and it will continue to offer them. The four it is no longer required to offer through its plan are so-called abortifacients, which destroy an already fertilized egg. The ruling does not imply that Hobby Lobby can avoid covering other “mandated benefits” under Obamacare, including the other 16 contraceptives. (In my view, however, the entire coverage mandate should be struck down as well, keeping employer-provided health care benefits a private contactual matter. The specifics of the mandate were not part of the ACA legislation. They were promulgated by bureaucrats at HHS for whom overreach has no meaning.)

2) In general, when individuals decide to associate or act under a corporate form, the corporation assumes the rights they possess as individuals. Human action taken under the corporate form does not involve a diminution of individual rights. Yet the left acts as if people have no rights when acting under the corporate form. Incorrect. Speech, religion — all rights that are granted to individuals under the Constitution are guaranteed to them whether they act as a corporate association or not.

3) The decision in Hobby Lobby applies only to closely-held corporations, the shares of which are not publicly traded. These are not the “faceless corporations” of popular infamy, but are often family-owned companies, associations of partners, or professional practices. Publicly-traded corporations are not affected by the ruling. Only privately-held corporations with more than 50 employees (under the original provisions of the ACA) are affected.

4) The decision does NOT interfere with womens’ rights to obtain most contraceptives. It means that the government cannot force Hobby Lobby to pay for abortifacients, and female employees have an unrestricted right to pay for abortifacients out of their own pockets. They are employed, after all. In addition, the ruling has nothing to do with coverage of abortion procedures that might be necessary when a mother’s life is at risk.

5) The government is not restricted, except as a possible matter of politics, from offering all women free access to abortifacients. It has not offered to do so, however. Therefore, under the 1993 Religious Freedom Restoration Act (RFRA), signed by President Clinton, the Court held that the government cannot impose any burden on private parties (including individuals organized as closely-held corporations) in violation of their religious beliefs if there is a less burdensome alternative available. The RFRA’s importance to the Hobby Lobby ruling is discussed here.

6) Some have accused Hobby Lobby’s owners of hypocrisy, since they sell goods imported from China, where abortion is often coerced by the state. And that might be hypocritical, but the only possible relevance to the case would be if the purchase of Chinese goods reflected on the sincerity of their religious beliefs. That is a litmus test that few would sanction. A beauty of private markets is that they tend to be impersonal, allowing individuals of different cultural practices and beliefs to trade peacefully with one another if they so desire. That has no bearing on the type of labor contract that Hobby Lobby may offer its own employees. In any case, the ruling applies more broadly than to Christian importers of Chinese goods.

Aside

Just Insurance? Or Unjust Insurance?

29 Sunday Jun 2014

Posted by Nuetzel in Uncategorized

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ACA, adverse selection, central planning, Obamacare, Risk Ratings

Ambulance

Voices from the left keep insisting that universal coverage and a single, all-inclusive risk pool is “just insurance,” and that anyone standing in opposition just “doesn’t understand insurance.” The argument is usually extended to the idea that all individuals must receive and pay for a comprehensive set of benefits, going far beyond any reasonable notion of catastrophic coverage. Proponents of this view advocate an extreme form of socialized health coverage that eliminates private choice and traditional risk-rating.

In a free society, individuals cannot be coerced into cross-subsidizing activities that might violate their religious convictions. It is hoped that this will be affirmed by the Supreme Court’s Hobby Lobby decision, likely to be issued this Monday.

Likewise, in a free society, individuals should not be forced to cross-subsidize private choices made by others. Preserving the right of individuals to purchase the benefits and coverage levels of their choice at reasonable premia (e.g., catastrophic care only or “wellness” features, no pregnancy coverage for senior citizens, risk-based pricing) is crucial. Providing care for high-risk individuals with pre-existing conditions need not involve a dismantling of the private health insurance market.

Of course, Obamacare has fallen short of the socialist “ideal,” either before or after all of the exceptions, delays, and waivers made by the administration and HHS. Its design, nevertheless, has had a destructive impact on the private insurance market, and the program is straining under the effort to provide high-risk coverage. In “Obamacare’s Prognosis Grows Dimmer,” Lanhee Chen discusses how adverse selection is playing out on the Obamacare exchanges. Based on the evidence available thus far, the exchanges appear to be laden with a high percentage of sick individuals. This is likely to lead to more premium shock for enrollees as we head into the mid-term elections.

A path toward providing effective coverage for pre-existing conditions is discussed in this article. It asserts that a solution hinges on the ability for individuals to make seamless transitions between employer-provided coverage and individual coverage, even with pre-existing conditions. Since that ability must apply nationwide, the authors also assert that there must be a role for federal funding of the high-risk pool of individuals making the transition to the individual market.

The VA and Government-Run Health Care

29 Thursday May 2014

Posted by Nuetzel in Uncategorized

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ACA, IRS Penalties, Obamacare, The Onion, Veteran's Affairs, Waiting Lists

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With Obamacare already on thin ice with the public, the problems at the VA are reinforcing the disadvantages of government-run health care. And if ACA proponents consoled themselves that the law was merely a step toward the “inevitable” single-payer system, the VA monopoly should not inspire hope. As noted elsewhere, one of the biggest costs of socialized medicine is always in the wait, a cost which is absent from official accounting reports.

The VA debacle is very bad news for the Obama Administration, not because it is their fault, though they have known about the fraudulent waiting lists for at least a year. Instead, for Obamacare, it is a public relations nightmare, as noted in this article: “Most Important Casualty of Veterans Affairs Scandal Could Be Obamacare.”

In another disturbing development, fit for an honored place in the pantheon of dumb government incentives, a new IRS ruling holds that employers who “dump” employees onto the federal exchanges will be fined up to $36,500 per year per employee! Granting the employee a raise to pay the premium will not gain the employer a dispensation. Only by firing the worker can they avoid the penalty. This is discussed here.

Here’s some commentary from the Onion that gets right to the heart of the VA problem: VA To Improve Veterans’ Health Care With New $500 Million Waiting Room. See the photo above for The Onion artist’s rendering of the new VA waiting room.

ACA Tax May Yet Be Its Undoing

05 Monday May 2014

Posted by Nuetzel in Uncategorized

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ACA, George Will, Origination Clause

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George Will covers the next Obamacare court challenge, on which arguments are to be held this Thursday in the D.C. Circuit Court of Appeals. The plaintiff asserts harm by the penalty-cum-tax. The “tax” was enabled by legislation originating in the Senate, not the House of Representatives, which is unconstitutional.

Will: “Two years ago, the Supreme Court saved the ACA by declaring its penalty to be a tax. It thereby doomed the ACA as an unconstitutional violation of the origination clause.”

Deepening Obamacare Deficits

18 Friday Apr 2014

Posted by Nuetzel in Uncategorized

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ACA, Federal Deficit, Obamacare

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The Unfolding Fiscal Disaster Behind ACA Enrollment Figures discusses the administration’s systematic dismantling of Obamacare’s sources of funding / savings. Not that it was well-conceived to begin with, but the objective during the law’s seat-of-the-pants implementation seems to have been to get people on the exchanges, and dependent, with a minimum of political damage. Success on either of those counts is debatable. In seeking to minimize political damage, the administration has chosen a path with dire fiscal consequences.

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Passive Income Kickstart

OnlyFinance.net

TLC Cholesterol

Nintil

To estimate, compare, distinguish, discuss, and trace to its principal sources everything

kendunning.net

The Future is Ours to Create

DCWhispers.com

Hoong-Wai in the UK

A Commonwealth immigrant's perspective on the UK's public arena.

Marginal REVOLUTION

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Stlouis

Watts Up With That?

The world's most viewed site on global warming and climate change

Aussie Nationalist Blog

Commentary from a Paleoconservative and Nationalist perspective

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Defending Life, Liberty and the Pursuit of Happiness

The View from Alexandria

In advanced civilizations the period loosely called Alexandrian is usually associated with flexible morals, perfunctory religion, populist standards and cosmopolitan tastes, feminism, exotic cults, and the rapid turnover of high and low fads---in short, a falling away (which is all that decadence means) from the strictness of traditional rules, embodied in character and inforced from within. -- Jacques Barzun

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