In response to Senate testimony provided by Health and Human Services Secretary Kathleen Sebelius, Max Baucus, the Democrat Senator from North Dakota, used the phrase “train wreck” to describe the implementation of Obamacare (to which Sebelius could offer no reply.)
Obamacare supporters were once composed of liberals, unions, Hollywood celebrities, and the Democrat party in total since the law was passed strictly along party lines. However, the supporters are defecting from the Obama camp over Obamacare in droves as October 1st approaches.
- Warren Buffet – “…I would much rather see another plan [and] …that’s what the American public wants to see…the American public is not behind this bill.”
Warren Buffet is a Democrat, one of the richest men in America, and an Obama supporter. He now says that Obamacare will not work because it is misguided on principle.
Labor unions were another major supporter of Obama and actively worked for the passage of Obamacare.
- Richard Trumka (AFL-CIO President)- “Obamacare is…the right direction but…we made some mistakes.”
- Terence O’Sullivan (Laborers’ International Union President) – “If the Affordable Care Act is not fixed…then I believe it needs to be repealed.”
There have been 14 laws “tweaking” Obamacare. Obama bypassed Congress five times delaying the implementation of Obamacare. Yet, the unions still want it fixed. The unions, staunch Democrat supporters, want Obamacare repealed.
- Howard Dean (Former Governor of Vermont and Democratic Presidential Candidate) – “There does have to be control of costs in our health-care system. However, rate setting — the essential mechanism of the IPAB (Independent Payment Advisory Board)— has a 40-year track record of failure.”
Let that one sink in for a moment. One of the main components of Obamacare has a 40 year track record of failure! Twenty-two Democrats are now supporting efforts to repeal the IPAB. Democrats now want to eliminate the cost control mechanism for Obamacare that is supposed to pay for itself.
Thirty-three Senate Democrats helped passed a bill in the Democrat-controlled Senate to repeal the 2.3% tax on medical devices. Repealing the tax would eliminate a source of funding that was supposed to pay for the deficit-neutral bill.
Thirty-three Senate Democrats now want to defund a portion of Obamacare.
The question is: why do Democrats want to stop Obamacare now?
Start with failed promises. Based on the law, people will be forced into the healthcare exchanges if they are considered high risk, which also means they cannot keep their doctor either, starting in 2014. People will lose their healthcare coverage if their employer chooses to drop coverage, cut hours, or if they simply force employees onto the healthcare exchanges. Despite Obamacare, the number of people who will be uninsured will be above 30 million for the next ten years.
Then there is the cost of implementing Obamacare.
If you use the Democrats’ initial estimate of $940 billion (because it has been the lowest estimate), there is still not enough money to pay for it. That equals an average cost of $94 billion dollars a year for 10 years.
The individual mandate tax is the major source of funding, since it impacts everyone in the U.S. labor force (who would have to buy insurance or pay a tax for not having insurance for one month or more in any year.)
The thirty three Democrat Senators have now realized the numbers do not add up.
In terms of what is required to be paid because of the mandate, it is whichever amount is higher – the flat dollar amount ($95 for 2014) or the percentage of income (1% for 2014, which would probably be the higher amount.)
The Urban Institute (with independent analysis by MIT economist Jonathan Gruber) conducted a study saying that approximately 7.3 million people (2 percent) would have to pay this tax. Politico.com and ThinkProgress.org agreed with their study.
So, in 2014, when the flat amount is $95, the individual mandate would generate approximately $760 million dollars. That leaves approximately $93.2 billion dollars to be raised for the year 2014. Where is that money coming from? Not the employer mandate that starts in 2015, not the excise tax that does not start until 2018 or 2019 (depending on your source), and not the medical device tax.
Even using the $695 amount, the mandate would only generate approximately $5.6 billion dollars. That would leave $88.4 billion dollars to be raised for the year 2014 to pay for Obamacare.
The average income under Obama has dropped to about $50,000. So, a 1% tax would be $500. Multiply that by 8 million, and the individual mandate generates approximately $4 billion. That would leave approximately $90 billion dollars left to be raised for the year 2014 to pay for Obamacare.
These Democrats have realized that Obamacare will not be paid for at any point. These Democrats have started working with the Republicans to defund and repeal portions of Obamacare. There are thirty three Democrat votes in the Senate that are now swing votes.
All the Republicans have to do is make the case for them to get rid of this “train wreck” of a law.
Photo credit: terrellaftermath