Negotiating Healthcare with Leverage

Front Page, National Scene, Opinion/Editorial

     

Creative Commons photo

 

     In a recent tweet, President Trump said, “If ObamaCare is hurting people, & it is, why shouldn’t it hurt the insurance companies & why should Congress not be paying what public pays?” Good question: Why, indeed?

     Under Obamacare’s regulation, medical costs have risen sharply, and insurance companies have been subsidized by government to offset the rising cost. Even with the government subsidy, insurance companies have been leaving the Obamacare exchanges. Eliminating the insurance subsidy would certainly hurt the insurance companies, but it would also hurt the people they serve. Therefore, hurting the insurance companies seems unlikely, but why should Congress not pay what the citizens pay?

     The short answer was provided by George Orwell more than seventy years ago in his book Animal Farm. A sign was posted that said, “All animals are equal, but some animals are more equal than others.” Congress believes they are more equal than the people they are supposed to serve. Congress believes it is above the law. It is that simple, but is it legal?

     In 2013, Obama allowed Congress to classify themselves as a small business, making them eligible for the small business exchange, where they receive an employer contribution through the Office of Personnel Management. This has often been referred to as the Congressional exemption to Obamacare. Clearly this exemption is unconstitutional because Congress is not a small business, and Congress did not appropriate funding for their subsidy from the Office of Personnel Management. Without the small business classification, Congress would have been directed onto the individual exchange which prohibits an employer contribution. More importantly Congress would have had to pay for their insurance like everyone else. There would have been no taxpayer subsidy for Congress.

     To qualify as a small business under Obamacare, an employer must have less than fifty employees. Congress has thousands of employees so the entire scam is based on fraud. Clearly President Trump could end the scam by instructing the Office of Personnel Management to eliminate the employer contribution for Congress. Taking such action would provide an incentive for Congress to address healthcare honestly and would be a move in the right direction with regards to “draining the swamp.”

     It remains to be seen if President Trump will take this action, but mentioning it has caused considerable discussion in Congress. Democratic Senator Chris Murphy used twitter to respond, “This is a clear threat to Congress: pass my health bill or as punishment I will end health care for you, your staff, & your constituents,” Murphy tweeted. Of course, Murphy is lying. There was no threat to end his healthcare. The threat was to make him pay for it. Murphy added moments after, “I would argue this is a very serious moment. President making personal threats to us and our constituents if we don’t pass his bill.” Clearly Senator Murphy does not understand President Trump’s use of leverage. Perhaps President Trump should have responded, “It is not a threat; it is a promise.”

     Not all responses were negative. Representative Ron DeSantis said, “I think the president would be absolutely within his rights to cancel the Obama rule (congressional exemption) that conferred this subsidy on Congress.” DeSantis also said killing the exemption would give lawmakers an incentive to get a health care plan approved. DeSantis is not alone.  Several Republicans have been criticizing the provision for years.

Congressman Ron Desantis  (Creative Commons photo)

     From the lack of congressional action on healthcare, it should be clear that Congress has no intention of repealing Obamacare even though they have been promising to do so for seven years. However, President Trump appears to be sincere in his desire to resolve the issue and has not given up despite having to deal with the pathetically inept and deceitful Congress. Congress would like to move on to tax reform, but President Trump has not finished negotiating on healthcare. In fact, the White House Counselor Kellyanne Conway said, “The president will not accept those who said it is, quote, time to move on.”

Creative Commons Photo

     The President has a leverage in the congressional exemption for Obamacare, and he is not likely to give it up easily. Consider this quote from President Trump’s book The Art of the Deal. “The worst thing you can possibly do in a deal is seem desperate to make it. That makes the other guy smell blood, and then you’re dead. The best thing you can do is deal from strength, and leverage is the biggest strength you can have. Leverage is having something the other guy wants. Or better yet, needs. Or best of all, simply can’t do without.” Congress wants the Obamacare exemption but President Trump controls it.

Until next time…

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Eight Track Players and Obamacare

Front Page, Government and Politics

 

     Ever since the Affordable Care Act (Obamacare) became the law of the land, Republicans have been promising to repeal it. In fact, most have included the repeal of Obamacare as part of their political campaign to get elected in the first place.  Now that they have a president willing to sign their repeal legislation, they are dragging their feet and are not providing the legislation to repeal Obamacare.  In typical Republican fashion they are waffling.  They now inform us that they need to keep the good part, but they fail to tell us what the good part is.

     Is the good part ever-increasing premiums? Is the good part not keeping your plan or your doctor?  Perhaps they think keeping basement-living adult children on their parent’s plan until they are 26 years old is the good part.  Frankly, I do not believe there is a good part unless you are one of the many welfare recipients who receive benefits through the plan’s Medicaid provision.  It is often claimed that Obamacare has added 30 million new insurance recipients since the plan was approved in 2010.  However, they seldom mention that 20 million are receiving their insurance through Medicaid, and hard working Americans are paying for it.

     It is time to remind your elected representatives that now is the time to repeal Obamacare. It is time for government to get out of the insurance business.  Congress should provide the legislation needed to repeal Obamacare and replace it with a free market system.  If there is a good part of Obamacare, the free market will provide it.  It is uncanny how the free market provides what consumers want and does not provide what the consumers do not want.  For example, the last time I looked for an eight-track player at Wal-Mart I was surprised to find they did not have one, but they had plenty of mp3 players, Bluetooth speakers, and sound bars.  That is how the free market works.  Apparently people do not want eight-track players in much the same way as they do not want Obamacare.  The same people who do not want eight-track players also don’t want to pay for mental health insurance, dental care for welfare recipients, breast pumps, and other Obamacare mandates.

     Apparently some members of Congress do not understand the concept of insurance because they cling to the pre-existing coverage requirement in Obamacare. They apparently falsely believe you should be able to buy fire insurance after your house burns to the ground. I understand that politicians are risk averse (although not when lining their pockets), but it is as John Paul Jones said, “It seems to be a law of nature, inflexible and inexorable, that those who will not risk cannot win.”

Until next time…

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