ObamaCare and the subsidy slurry
HHS Secretary Kathleen Sebelius - who once defended ObamaCare by claiming the insurance industry was in a "death spiral" anyway - finally admitted that ObamaCare is driving up insurance premiums today. But it's OK, she says, because the government will toss out subsidies to the low-income folks who can't afford their Obama insurance. Ditto for business enterprises that can't cope with those ObamaCare costs. And don't forget about that massive Medicaid expansion, which will be largely subsidized by federal taxpayers (according to the Administration's promises) but still dump billions in new obligations on state governments.
This is all consistent with the usual socialist method of hiding costs, and abject government failures, by mixing them into the great slurry of federal taxes and subsidies. Nothing is itemized, so the chumps out in flyover country don't know what anything really costs. They just get handed a fat tax bill for all that "free" stuff, and watch the government print huge piles of money in the basement of the Treasury to keep those monster deficits floating. When the deficit finally stops floating, they'll be told monster tax increases are obligatory. And if they object to federal spending before it hits the systemic meltdown stage, they'll be told the most valuable and popular services must be slashed to pay for the first dollar of spending cuts. We all just got a rather stern lesson in that with Obama's Sequestration Terror, didn't we?
So middle-class taxpayers will pony up higher insurance premiums under ObamaCare, and subsidize the higher premiums paid by the poor. The effect will be distributed unevenly between states - some will get walloped by 80 or 100 percent average cost increases, while others will make out fairly well. That means taxpayers in the chump states get to subsidize the "winners." The remaining shortfall will be billed to our children with deficit invoices, forcing the young to subsidize the old - and even at the present time, Sebelius admitted ObamaCare is a much better deal for older Americans.
And when the whole ridiculous system falls apart, as I believe it was always designed to do, we'll be told the only hope is to socialize health care costs even further, through single payer government-run health care. Then everything will be "free"... for certain people... right up until it isn't.