Obamacare: Young People Get the Shaft, Low-Income Young People Get Medicaid

A recent study indicates that health insurance premiums could rise by as much as 40 percent as a result of President Obama’s healthcare law.  Young, healthy men would be the most negatively affected by this changed.

The Washington Examiner explains why Obamacare won’t become attractive to young people any time soon:

[T]he typical 26 year-old male with low medical expenses would have to decide next year whether he would rather pay roughly $1,700 (or more) extra for compliant health insurance as opposed to going uninsured. This is in addition to rent, food, student loan payments, credit card debt, transportation, entertainment expenses, and so on. And keep in mind, this is under the rosy scenario, as supporters of the law are holding up California as a model.   Some young Americans may decide to purchase the insurance under such circumstances. But will enough of them do so to make Obamacare functional? I remain skeptical.

Obamacare’s Medicaid expansion makes the picture even grimmer for young adults and especially low-income adults.

Heritage’s Ed Haislmaier explains that young adults in states that choose to adopt the Medicaid expansion could be trapped in low-wage and part-time jobs.  “The program creates perverse incentives that make it advantageous to have employees go into Medicaid – and stay there.”

What are these incentives?  Who would really want to sign up for a failed Medicaid program that doesn’t improve health outcomes? 

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Sens. Coburn and Burr Fight the Medicaid Expansion

Obamacare’s Federal Medical Assistance Percentage (FMAP) uses the bait of taxpayer dollars to incentivize the states to adopt a massive Medicaid expansion.   In light of the federal debt that will soon surpass $17 trillion dollars, additional federal spending is extremely imprudent.  If left unchecked, Medicaid spending is estimated to cost $4.3 trillion over the next ten years.  Moreover, the promise of federal support and federal taxpayer dollars for the Medicaid expansion is just another false promise.

That’s why Senators Tom Coburn (R-OK) and Richard Burr (R-NC) have introduced a bill called the Preventing an Unrealistic Future Medicaid Augmentation Plan (FMAP) Act of 2013 (S. 963).  The bill would repeal FMAP so that the states are no longer falsely led to believe that federal funding will ever come through for the Medicaid expansion.

Sen. Coburn’s message to the states was:

This bill sends a basic message to governors and state legislatures considering expansion:  don’t count on the enhanced federal funding for Medicaid expansions, because Congress has overpromised what it cannot deliver. Realistically, the funding will not be there and the check will bounce

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How to Stop a Train Wreck from Happening

Conservatives have long known that Obamacare would never work, and liberals are reluctantly but increasingly conceding it as well.

But here we are.

It’s May of 2013, and time is not standing still.  Obamacare is already a disaster.  There are limited but very important opportunities to prevent Obamacare from being implemented in 2014.  Full repeal is of course the goal, but there are other options for pulling the rug out from under this dreadful law.

Rep. Matt Salmon (R-AZ) is seizing these opportunities to stop Obamacare from causing irreparable damage to our health care system.  He has offered two pieces of legislation that will help defeat Obamacare.  The first is The Medicaid Expansion Repeal and State Flexibility Act, and the second, introduced yesterday, is the Federal Repeal of Expensive Exchanges Act

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The States Should Reject the Medicaid Expansion

As Josh Robbins reminds us, we must not forget that preventing the implementation of Obamacare is our last line of defense against the healthcare law before it goes fully into effect in 2014 resulting in greatly diminished quality of care and massive costs.  Rather than trying to bail out one part of Obama care by “shuffling money between accounts,” Congress should repeal the law in full.

There are two steps that conservatives can take to prevent the implementation of the Obamacare.  Robbins explains:

Conservatives can battle this implementation of Obamacare on two fronts: 1) showing the federal government cannot be relied upon to provide the funding for states to cover this massive expansion of government health care; and 2) explaining that Medicaid does not work. 

What is alarming is that in the state of Montana, special interest groups are going to great lengths to get federal money.  Their wishful thinking leads them to believe the feds are going to keep their promises. 

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The Forgotten Obamacare Implementation Battle

While some in Congress are spending their days figuring out how to bailout the Obamacare federal high risk pools by shuffling money between accounts, there is an ongoing battle over the implementation of the Obamacare Medicaid Expansion in which conservatives can actually score some real wins.

Governors and state legislatures are making decisions right now as to whether they’re going to accept massive amounts of federal spending, as well as increase spending on their own, for the Obamacare Medicaid Expansion.  States led by Democrats have unsurprisingly fallen in line with the expansion.  Several Republican governors, most notably Governors John Kasich (OH) and Rick Scott (FL), have been lured in by the dubious promise of free federal money.

Click here to see what your state will spend with the Obamacare Medicaid Expansion

Conservatives can battle this implementation of Obamacare on two fronts: 1) showing the federal government cannot be relied upon to provide the funding for states to cover this massive expansion of government health care; and 2) explaining that Medicaid does not work. 

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