Obamacare: The Frog and The Scorpion

(From: The Stalwart Enterprise. Author: Phil Zieber)  For those unfamiliar with the adage: A frog and a scorpion are at a river’s edge and want to get to the other side. The scorpion, recognizing his dilemma, entreats the frog to allow him to ride upon the frog’s back because he cannot swim. The frog says, “I can’t agree to that. You’re a scorpion and will surely sting me as I swim; and then I will drown.” But the scorpion reasons that it would be ridiculous for him to sting the frog because, in this case, they would both drown. After some chiding, the frog relents and the two begin their voyage across the river. About midway, the scorpion stings the frog and before they both descend the frog pleads, “You said you wouldn’t sting me?” To which the scorpion replies, “But, I’m a scorpion. It’s who I am.”

There are those who believe that fully implemented Obamacare will bring about a renaissance in American healthcare; it will be somehow more accessible, more humane and better for all concerned. As the components of this impending mandate reveal themselves with time, the American public is about to discover what a nefarious usurpation of power they have agreed to, and what a tragic mess it will make of the most envied healthcare product in the world.

According to Dr. Scott Gottlieb, Attending Physician at NYU and Resident Fellow at the American Enterprise Institute, we’ve only seen subtle changes thus far, but very soon (strategically delayed until post 2012 Presidential election cycle) many of us are about to get a stark lesson in indirect taxation.

By 2014, according to the Patient Protection and Affordable Care Act, the states will be mandated to set up a marketplace where people can purchase government approved healthcare plans. These state exchanges will likely offer only three choices, a bronze, silver and gold plan, but the difference will not be in the thoroughness of coverage provided. The extent of care will be the same among the three, but a bronze plan will have a higher co-pay and higher out-of-pocket cost to the consumer, thus a gold plan will be lower on co-pay and lower on the out-of-pocket costs.

According to Gottlieb, to assist in the purchase of these plans, the government will provide a consumer subsidy based on a person’s income (Here we go.). If you have a family of four and make about $40,000 a year, you’ll receive $12,000 toward the purchase of healthcare that costs roughly $14,500 in the state exchanges (state costs will vary due to population and demographics). The catch is, that above an income level of $60,000 per year, the subsidy payment begins to drop rather dramatically. In excess of $90,000, there will be NO subsidy and the consumer will pay for mandated healthcare outright. For those who were once covered by employer sponsored health plans, and perhaps paid a portion with pre-tax earnings, many will find themselves paying for new health plans, with after-tax earnings, completely unsubsidized. How about a $1000 dollar a month, veritable tax increase to make you appreciate “hope and change?”

Where quality is concerned, Gottlieb contends that reimbursement rates for physicians will settle at or below current Medicaid levels which may degrade services and availability. Doctors will have a financial incentive to economize care for certain conditions because of minimal compensation. Age marks instituted by bureaucrats may make early testing for certain conditions like prostate cancer or alzheimers unqualified for compensation, and thus the cost burden will fall entirely upon the consumer. This is a good deal for whom?

Obamacare is the perfect disguise for left-wing designs on power, wealth redistribution and personal liberty. We stand at the river’s edge about to take on hazardous cargo. Consumer beware — It’s who they are.

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