Last week’s news that the Obamacare employer mandate deadline has been postponed a year was followed by this week’s announcement that health care markets will not be required to verify consumer’s income and health insurance information in order to get coverage.
In short, what was already arguably the worst legislation in history is falling apart at the seams.
Setting aside the fact that no component of the ACA grants the Obama Administration the authority to just alter the law as it sees fit, the desperate scramble to make Obamacare workable is yet further evidence that it is not.
The delay of the employer mandate, which stipulates every business that employs 50 or more workers must provide health insurance benefits, is being lauded by Democrats as a necessary tactic to give businesses more time to prepare. It isn’t hard to see the truth here. The Obama Administration is worried that the economic turmoil sure to come with Obamacare’s increased regulations and costs on employers will have a negative effect on Democrats’ 2014 congressional and senatorial elections.
Democrats know they have little hope of reclaiming a majority in the House, but are nervous about losing control of the Senate. With more bad news on jobs numbers out last Friday – the Bureau of Labor Statistics monthly report showed no drop once again in nation’s 7.6% unemployment rate - Democrats are doing whatever they can to ease the blow from the largely unpopular Obamacare law..
Perhaps more economically detrimental than the delay of the employer mandate is the 600 brand new pages of regulations (on top of the hundreds already built in), the most egregious of which delays the requirement that states verify its applicants for Obamacare’s benefits. Instead, “the federal government will rely more heavily on consumers’ self-reported information until 2015,” the Washington Post reports.
This leaves the door wide open for fraud and corruption. Without a verification system in place to determine who qualifies for Obamacare’s benefits based on income levels and current insurance situation, each state will basically have to take applicants’ word for it.
The Wall Street Journal recalls a similar government boondoggle: “’Remember liar loans,’ the low or no-documentation mortgages that took borrowers at their word without checking pay stubs or W-2s? Obamacare is now on the same honor system, with taxpayers in tow. People are supposed to receive subsidies only if their employer does not provide federally approved health benefits. Since the Department of Health and Human Services now won't require business to report those benefits or enforce the standards until 2015, it says it can't ask Obamacare's ‘exchange’ bureaucracies to certify who qualifies either.”
Obamacare is terrible for the economy, job growth, and small businesses. Not to mention the incredible adverse effect it is having on those who already have insurance; 58,000 Californians will soon lose their existing coverage as major providers are choosing to leave the market rather than take a loss on Obamacare’s regulations.
What has gotten lost in the recent employer mandate delay news, is the fact that the individual mandate deadline for health insurance coverage remains January 1, 2014. This creates a whole new problem for those who don’t yet have insurance, but won’t receive it from their employers for at least another year. This means people are being forced to buy an expensive product, even while their insurance benefits from work are being reduced or eliminated for the time being.
On top of consistently poor Obamacare favorability ratings from the public since its inception, a new poll indicates overwhelming support for delaying the individual mandate along with the employer mandate. In fact, the HealthPocket survey shows only 12% of Americans want the individual mandate to go into effect at the original 2014 deadline. The reality is the American public continues to strongly dislike the Obama Administrations takeover of the American healthcare system.
With both the employer mandate and verification process being delayed, it’s a safe bet the individual mandate will be soon to follow as President Obama and Democrats struggle to fix an unfixable law.