health exchanges


Obamacare’s Creation of Instability in Insurance Subsidies

I have a new column up at e21 on the recent CBO study that shows the strange inequalities that will result in the health insurance options for certain families:

CBO’s analysis confirms a crucial point about ObamaCare which remains poorly understood, which is that the law creates a massive inequity in insurance subsidies for working families with low wages.... The problem is that the subsidies inside the exchanges will far exceed the tax subsidy for employer-paid premiums at the lower end of the wage scale.

However:

CBO believes that other preexisting labor laws will make it very difficult for employers to selectively dump their workers into the exchanges.... But what if CBO is wrong and employers are able to find ways around the existing rules to create a two-pronged approach to coverage, with high-wage workers staying in tax-preferred employer plans and low-wage workers migrating to the exchanges?

You can read the rest of the article here.

posted by James C. Capretta | 10:40 am
Tags: Obamacare, health exchanges, CBO
File As: Health Care

Inside the Obamacare Spin Zone

Over at National Review Online, I have a new column up looking inside the Obama administration’s claims about progress at the state level implementing the “health exchanges” meant to form much of the new health care system:

According to the administration’s spin, some 28 states are “on their way” toward establishing the exchanges, so everything is apparently well under control. In other words, nothing to worry about here. Full speed ahead! 

But is that really what’s going on here?

Because, even if one were to accept the White House’s accounting (which one shouldn’t), that would mean that 22 states — roughly 40 percent of the country — are not “on their way” toward erecting the Obamacare exchanges. Isn’t that a problem? Further, upon closer inspection, it’s clear that many of the 28 states that are supposedly “on their way” really aren’t “on their way.”

You can read the full column here.

posted by James C. Capretta | 6:43 pm
Tags: Obamacare, health exchanges
File As: Health Care