Tag: Healthcare

Photo Explaining Obamacare’s Perverse Incentives Is Worth a Thousand Words »

Health insurers in Obamacare’s exchange plans have perverse incentives to attract healthy patients and deter sick ones from enrolling. This is because the law forbids insurers from charging premiums that reflect applicants’ likelihood of incurring high medical costs. Although there are risk-mitigation mechanisms to overcome this, they appear to be inadequate. If this photo does not tell…
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High Taxes, Lack of Federal Bailout Make Vermont Cancel Single-Payer Plan »

Vermont Governor Peter Shumlin has cancelled his longstanding plan to impose government-monopoly health care in the Canadian border state: Tax hikes required to pay for the system would include a 11.5 percent payroll tax as well as an additional income tax ranging all the way up to 9.5 percent. Shumlin admitted that in the…
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CROmnibus and Cronyism for Blue Health Plans? »

Despite the end of Obamacare’s “bailout” for health insurers, some of our friends who seek to repeal and replace Obamacare insist on finding a crony capitalist under every bed and in every closet. Yuval Levin, at National Review Online, appears to have been the first to identify an adjustment to an insurance regulation, buried in the…
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Student Debt and Default Explode While U.S. Department of Education Fiddles »

A new report from the U.S. Department of Education’s Office of Inspector General (OIG) examined what steps it had taken from fiscal years 2011 through 2014 to improve student debt and loan repayment rates. In a nutshell, a big fat nothing—and taxpayers will be stuck paying off tens of billions in bad loans as…
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How Obamacare Hurts Its Beneficiaries: Two Vignettes »

Last week, the mainstream media ran two stories about two Obamacare “beneficiaries” who were actually victims. The first was about a woman whose husband was already extremely sick, and was subject to the risk of being unable to buy health insurance in the individual market if he lost his employer-based benefits. That was a…
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Hiring in Ambulatory Clinics Back on Track; Other Health Jobs Lagging »

Last Friday’s employment report from the Bureau of Labor Statistics caused some joy in the land: 321,000 jobs were added in November. My Forbes colleague Bruce Japsen cheered about an “Obamacare jobs bump” in health services. If true, this would be an example of Bastiat’s broken-window fallacy: Broken windows create employment for glaziers, so the government should…
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Professor Gruber Strikes Again »

According to a recent post by Scott Vorse on Brietbart’s “Big Government” website, MIT economics professor Jonathan Gruber, already in hot water for saying that “the stupidity of the American voter” was politically indispensable in getting Congress to pass the Affordable Care Act, previously had advised former NYC mayor Michael Bloomberg on tobacco tax…
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Gallup: Obamacare Hurting the Middle Class »

Gallup reports that more Americans are delaying medical care because of cost. It is now 33 percent of respondents, versus only 19 percent in 2001. Some would love to blame this on consumer-driven health plans, which shift medical spending from premiums, which run through insurers’ bureaucracies, to patients’ direct control. However, this increase in…
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Consumer-Driven Plans Increase Share of Employer-Based Benefits »

Consumer-driven health plans seized five more points of market share in the employer-based benefits market, according to Mercer’s latest report: Mercer survey finds average total health benefit cost per employee rose 3.9% in 2014; Enrollment in high-deductible, consumer-directed health plans (CDHPs) jumps from 18% to 23% of all covered employees following a surge of new…
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“Cadillac Tax” Will Hit 38 Percent of Employers in 2018 »

The “Cadillac tax” is the excise tax on high-value health plans, which goes into effect in 2018. If the value of health benefits exceeds $10,200 for an individual or $27,000 for a family, the excise tax will be 40 percent. A new report from the American Health Policy Institute breaks down the effect on employers. As…
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