Bending the Curve

“The only thing we’re going to try to do is lower costs so that those cost savings are passed onto you. And we estimate we can cut the average family’s premium by about $2,500 per year.” – Barack Obama, October 2008

Eventually the “affordable” portion of the “Affordable Care Act” kicks in, right?

“It is amazing that people who think we cannot afford to pay for doctors, hospitals, and medication somehow think that we can afford to pay for doctors, hospitals, medication and a government bureaucracy to administer it.” Thomas Sowell

The must-issue regulation built into ObamaCare increases costs for the insurers, who cannot draw all of the needed revenues from the high-risk pool, thanks to mandates on rates.  That means those costs have to get spread out to everyone in the pool.  This is nothing more than Risk Pool 101, a course that Congress flunked repeatedly in the ObamaCare debate because that wasn’t the point of the exercise to begin with.

As I have said before, to put it very simply, look up Adverse Selection and you’ll know why this was doomed to failure.

My Adverse Selection Blog

Insurance companies try to minimize the problem that only the people with big risks will buy their product, which is the problem of adverse selection, by trying to measure risk and to adjust prices they charge for this risk. Thus, life insurance companies require medical examinations and will refuse policies to people who have terminal illnesses, and automobile insurance companies charge much more to people with a conviction for drunk driving.

Or a Person who never had insurance get’s a terminal disease and gets insurance to pay for it and it costs  A LOT to the insurer then dies shortly thereafter.

If the insurer had known they’d have adversely selected to not insurer this too a high a risk person but if they can’t do that then You and I get higher premiums to pay for it!!

Ta da! 🙂

Moral Hazard: In insurance markets, moral hazard occurs when the behavior of the insured party changes in a way that raises costs for the insurer, since the insured party no longer bears the full costs of that behavior. Because individuals no longer bear the cost of medical services, they have an added incentive to ask for pricier and more elaborate medical service—which would otherwise not be necessary. In these instances, individuals have an incentive to over consume, simply because they no longer bear the full cost of medical services.

And does this all not sound like ObamaCare to you??

But ObamaCare was a political decision not an economic decision so that’s why the economics are bass-ackwards AGAIN.

Obama and The Democrats are masters of this. Pass a Political bill that sounds like economics but is purely an ideologically based bill meant to benefit THEM politically and nothing else.

In the meantime you, the moron ,I-don’t-wanna-know voter gets it in the shorts but you’re happy to be given yet another government approved enema!!

Case In Point….

The latest government report on national health spending provides more evidence that ObamaCare will act as poison to a health care system that was already on the mend.In 2011, the last year for which data are available, spending on health care climbed just 3.9% for the third year in a row.The press is dismissing it as the result of the recession, while the Obama administration claims ObamaCare deserves credit. Neither is true.

Health spending skyrocketed during previous economic slumps — it saw double digit increases during the deep, prolonged 1981-82 downturn, for example.

Plus, the spending trend had been falling for years before the last recession, dropping from 7% in 2004 to 4.7% in 2008. In any case, even after the recession ended in mid-2009, spending growth still slowed.

Insurance premiums showed the same trend. According to the Kaiser Family Foundation, annual family premium increases fell from 9% in 2005 to 5.4% in 2007, and to 3% in 2010.

The health care market, it turns out, was already figuring out how to control costs long before ObamaCare. Witness the explosive growth in Health Savings Accounts.

These plans — which combine high-deductible insurance policies with a tax-free health spending account that rolls over at the end of the year — went from virtually nonexistent in 2005 to become the second most popular plan offered by employers, the Kaiser study found.

These plans hold down health spending by giving consumers a more direct financial stake in their own health care decisions.

The problem is that ObamaCare declares war on this cost control effort by capping deductibles at $2,000 and making it harder to offer health savings accounts. And ObamaCare’s ever increasing list of benefit mandates will drive up costs just as they have at the state level.

The “guaranteed issue” rule will force premiums still higher, which even ObamaCare fans now admit, and its huge subsidies will drive up taxpayer costs.

The result: Annual spending increases will shoot up to 7.4% in 2014, when ObamaCare fully kicks in, and will remain at or above 6% for the foreseeable future.

Insurance premiums are already spiking, up 9.5% in 2011 and 4.5% last year. And as we pointed out in this space yesterday, double-digit premium increases are now popping up all over the place.

Doctors take an oath to “first do no harm.” Too bad Obama didn’t adhere to that when he forced ObamaCare down the country’s throat.

But it’s the HOLY GRAIL of Authoritarian Liberalism!!

Getting to choose who lives and who dies. Getting to choose how you live. It was irresistible. They’d been slobber over the idea for 80 years.

Now they can decide when you are no longer of any use to the State. They can have the Food Police out there deciding that what you’re eating isn’t “healthy” enough for the State’s purposes. And they get to have the IRS to kick down your tax door if you don’t pony up!!

What’s not to like, if you’re a petty dictator and consider yourself so far above mortals in “enlightenment” and “compassion”??

After all, if you disapprove you must be and evil, mean, poor-hating “granny-off-the-cliff” arsehole! 🙂

Political Cartoons by Lisa Benson

Michael Ramirez Cartoon

To Be Fair

After emerging from a lunch meeting on Thursday with members of her party and Jack Lew, the White House budget director, Ms Mikulski said her colleagues were feeling “volcanic” about the prospect of a $3,000bn (aka 3 Trillion) deal to cut deficits and raise the debt ceiling that did not include any higher taxes, adding that it was “like Mount Vesuvius” in the room.

Harry Reid, the US Senate majority leader, added: “This can’t be all cuts, there has to be a balance.”  We have to screw someone!

Facing a possible revolt from within Democratic ranks, White House officials immediately dismissed the notion that the president would strike any agreement with Republicans to implement significant spending cuts – including reform of treasured government programmes such as Medicare and Social Security – without garnering any new revenue in return  (aka TAX INCREASES). They also invited Democratic leaders back to the White House for a second straight day of talks in an effort to shore up their support in the negotiations.

Democrats are still expected to back whatever deal President Barack Obama strikes with congressional Republicans, but Thursday’s discontent highlighted the delicate balancing act facing White House officials as they go back-and-forth between the parties in search of a compromise.

I’ve said it before and I’ll say it again, “compromise” to a Liberal means do exactly as I say, and only what I say,  and shut and sit down you idiot!

Mind you, on Dec 6th, 2010 Obama said raising Taxes in a recession was a bad idea. But that was a politically calculated move of the moment. Now 7 months later he has to forget he ever said and the media will be glad to oblige. Also, he ardent supporters will have forgotten it also. And if you remind the they will blow it off because they are of the moment only. What do we want now is all that matters.

Dec 6,2010 Whitehouse.gov: Make no mistake:  Allowing taxes to go up on all Americans would have raised taxes by $3,000 for a typical American family. And that could cost our economy well over a million jobs.

But now IF WE DON’T RAISE TAXES Armageddon is upon us!!! Run For the Hills!!!

Obama Now, in this moment (trying to appear to be a centrist instead of the left wing ideologue because he’s running for re-coronation):

“Regardless of what you feel about the particular policies — some of you may have supported the wars or opposed the wars; some of you may have agreed with the Recovery Act; some of you may be opposed — regardless of your views on these various actions that were taken, the fact is they all cost money,” he said. “And the result is that there’s simply too much debt on America’s credit card.”

He added, “Neither party (Just the Republicans!) is blameless for the decisions that led to this problem, but both parties have a responsibility to solve it.”

But when the Republican propose, the Democrats dispose. So again, it comes down to kiss the Democrats ass or else. Now that’s a compromise!! 😦

“The one thing we can’t do — cannot do — is decide that we are not going to pay the bills the previous congresses have already racked up,”

But we can threatened and scare seniors with false claims of not paying their bills to stoke up the class warfare and fearmongering.

If you take in $200 billion a month and Social Security cost $50 billion the only reason you’d wouldn’t pay that first is if your try to extort and exploit people.

“We can’t just close our deficit with spending cuts alone, because if we take that route it means that seniors would have to pay a lot more for Medicare, or students would have to pay a lot more for student loans,” he said.

And what will cuts in these programs that have to be made to make any kind of deficit reduction even possible do to them?

Or if you do nothing and they crash and burn on their own in less than 10 years?!

You guessed it!

But don’t tell the President, he’s running for re-coronation so he doesn’t want to say it, even if it is the truth.

He’s trying to look “fair”. 😦

And we have the tried and true Democrat strategy of “Vote for me the other guy’s an asshole!”. The fact that I might be an even bigger asshole doesn’t enter into equation.

“If we only did it with cuts, if we did not get any revenue (TAX INCREASES!!) to help close this gap between how much money is coming in and how much money is going out  (yeah just not spending too much isn’t enough meat for your base is it), then a lot of ordinary people would be hurt and the country as a whole would be hurt. And that doesn’t make any sense. It’s not fair.”  (Oh there’s that word “fair”!!! ooh it makes me all tingly!)

And you morons keep spending more than you take in we ALL get hurt. But that’s not important right now… So says the Guy who was going to be the Great Uniter of the country and govern for all the people, not just Democrats. 😦

“fairness” and “compromise”. Bend over here comes the greatest enema of all time!

Adhering to the standard Democratic talking points, Time managing editor Rick Stengel told CNN’s Wolf Blitzer during the 6 p.m. EDT hour of The Situation Room that if tax rates go up in 2013, it’s “not a tax hike,” demanding that “this is something that Republicans have to get used to.”

On the CNN poll, one thing no one at CNN is mentioning, is that question #23: Do you want Cut, Cap and Balance? Sixty-six percent of the American people want it. Question #25: Do you want a balanced budget amendment? Seventy-four percent! This is CNN’s own poll and they’re not reporting it tonight. (MRC)

So bend over here it comes!!!!

Political Cartoons by Steve Kelley