Obamacare's a Bad Joke for American Taxpayers

Gallup Poll analysts are using its latest survey results to figure out just what Obamacare has produced in enrollments. The Gallup-Healthways Well-Being Index measured the share of adults without health insurance, which shrank from 17.1% at the end of last year to 15.6% for the first three months of 2014. Gallup equates this to 3.5 million new insured Americans under Obamacare. But, the administration says 7.1 million have signed up for subsidized private plans through new insurance markets, while 3 million previously uninsured people gained coverage through the law's Medicaid expansion. Why the big difference? The administration's numbers include people who switched or were dropped from their previous coverage, as well as people who have not paid their first month's premium, and who would therefore still be uninsured. The administration is also counting sign-ups dating back to October, although enrollment in the first few months was relatively low and would not really affect the Gallup conclusion. So, it is probably safe to say that the Obama administation numbers are artificially inflated, perhaps by as much as 200%. ~~~~~ At the same time, Congress is having to deal with another Obama decision about Obamacare. Several Democrats - including some lawmakers whose re-election bids are vulnerable in this year's midterm races because of their vote for and support of Obamacare - are joining Republicans in calling for the Obama administration to stop proposed cuts to the Medicare Advantage program. Administration officials plan to announce the 2015 rates for the program, perhaps today, and this could be a sensitive issue because both parties are seeking the votes of senior citizens who tend to turn out in high numbers in midterm elections. Republicans say Medicare Advantage is a valid private alternative to Medicare because it allows seniors to enroll in plans offered by private insurers, who are then directly paid by the government. Until now, Democrats have complained that the plan receives a disportionate amount of money compared to the Medicare program. But, more important to President Obama is the fact that Obamacare is being partially financed by $200 billion in cuts to Medicare Advantage over 10 years. Democrat opponents include Senators Mark Pryor of Arkansas and Mary Landrieu of Louisiana, considered two of the Democratic Party's most vulnerable senators seeking re-election. But some powerful Democrats are also speaking out, including Senators Charles Schumer and Michael Bennett. Earlier this year, 19 Democrats joined with 21 Republicans to sign a letter urging the Medicare Administrator to protect Medicare Advantage, passed under President George W. Bush to give seniors more healthcare plan options from private insurers. Twenty-eight percent of seniors now participate in the plan, but insurers say they will be forced to pass on higher costs to seniors or cut benefits if their rates are reduced, and some plans may drop out altogether. The impact could vary significantly around the country. The industry says the cuts come as Medicare Advantage reductions programmed under Obamacare are ramping up, with the goal of compensating for prior years in which the plans were overpaid. But it also includes a new tax on insurers, so industry officials fear the combined impact will be much higher. The Medicare Advantage issue is already coming up in early primaries, with Republicans who vowed to make Obamacare the key issue this election cycle tying Democrats to the proposed Medicare Advantage cuts. The tactic has already worked in a Florida special election, defeating the Democrat and keeping a Republican in the congressional seat after the incumbent's death. Louisiana Senator Landrieu opposes the cuts, but her GOP opponent has attacked her over them, saying that her vote helped get Obamacare approved and bring about the cuts that she now opposes. The insurance industry is also fighting the White House's proposed cuts, with insurers rolling out a public relations campaign with the message that "seniors are watching" Washington. But the Obama administration says the cuts will pay back "overpayments" to the program, which has resulted in Medicare Advantage receiving more benefits than Medicare. Meanwhile, the Centers for Medicare and Medicaid Services say that the cuts will strengthen the program by rooting out waste, and enrollment in Medicare Advantage will remain stable, even with the cuts. However, the nonpartisan Congressional Budget Office estimates that Obamacare would reduce Medicare Advantage payments by $156 billion over a decade. In February, the Department of Health and Human Services announced tentative cuts that most analysts calculated to be around 5%, which would reduce payments to insurers by $7 billion next year alone. According to Ana Gupte, an industry analyst : “It’s a big deal. It’s huge,...2015 earnings are very, very dependent on what the rates look like.” Last year, similar pressure on Medicare Advantage payments caused “reductions in benefits, increases in out-of-pocket costs and changes in provider networks,” according to healthcare industry experts. ~~~~~ But, dear readers, rather than abandoning the program, in 2013 more seniors signed up for Medicare Advantage, whose membership grew by 9%. So, putting aside the bungled job the Obama administration has done in launching Obamacare, despite its refusal to give real enrollment numbers, despite its attempt to destroy the greatly preferred choice-based American healthcare system, 28% of senior Americans are still trying to connect to the private healthcare system through Medicare Advantage - while Obama and company are trying to force the preferred private program out of business by reducing payments to it and taxing it to fund the unpopular public Obamacare program. The Congressional Budget Office originally estimated that Obamacare would cost $1 trillion. That estimate is now at $1.072 trillion for the first 10 years and an additional $2.85 trillion for the next 10 years. These costs will be added to the national debt, unless Obamacare pays for itself, something no expert believes will happen. If we take the Obama figure of 10 million enrollees, Obamacare will cost taxpayers about $100,000 for each initial enrollee for the first 10 years and $306,000 over the entire first 20 years. But, if we take the Gallup enrollee figure of 3.5 million enrollees, Obamacare will cost taxpayers about $400,000 for each initial enrollee for the first 10 years and $1,100,000 over the entire first 20 years. That ought to make Americans feel a whole lot better about President Obama's Obamacare as they prepare to pay their annual federal tax bills.