Freedom Line Blog

Even though it’s been delayed for a year, Obamacare’s employer mandate is still giving business owners cold sweats.

North Georgia Staffing, a family-owned boutique staffing agency, currently employs 18 full-time workers and 400 temporary workers. Next year it plans to add another 200 temps.

The problem facing Debbie and Larry Underkoffler, the owners, is whether to extend the same insurance coverage to all workers or pay a $2,000 per employee fine, they told Fox News.

The projected fine would be $400,000, while giving all workers an Obamacare-approved plan would top $2 million.

The Underkofflers’ case is particularly galling because prior to any government mandate they already provide their workers – both full-timers and temps – with access to health insurance.

Yet under Obamacare’s system of mandates and penalties, it makes better financial sense for the Underkofflers to dump their temporary workers on Georgia’s federally-run exchange and pare back benefits for the full-timers. In both cases, workers are projected to pay more for health insurance and get less.

All this makes perfect sense, however, if you agree with Obamacare’s primary goal of increasing the number of people with health insurance by regulatory fiat.

North Georgia Staffing, supporters would argue, is laudable but an outlier. Most temporary workers don’t have health insurance. The way to (somewhat) pay for the cost of covering them is to either (1) make employers eat the price increase, or (2) use the fines when they refuse to (partially) fund the federal subsidies temps will use to buy insurance on an exchange. If that means that some owners and workers will pay more for less, it’s a worthy sacrifice to increase access to health insurance for others.

That’s the baseline policy argument for Obamacare’s employer mandate. No doubt it doesn’t poll as well as “If you like your doctor and insurance you can keep it,” but at least it’s the truth.

If anyone is looking for another reason to criticize the Obamacare website rollout, here it is.

“Rather than open the contracting process to a competitive public solicitation with multiple bidders, officials in the Department of Health and Human Services’ Centers for Medicare and Medicaid accepted a sole bidder, CGI Federal, the U.S. subsidiary of a Canadian company with an uneven record of IT pricing and contract performance,” reports the Washington Examiner.

An open, competitive process would have revealed that CGI was fired in 2011 by the Ontario government for failing to deliver on time “a new online medical registry for diabetes patients and treatment providers.”

In other words, CGI – the firm responsible for creating a health insurance portal to service 36 American states – couldn’t deliver a much less complicated system for 1 Canadian province. The service was so bad that the Ontario government still refuses to pay any outstanding fees it owes to CGI.

Remember when liberals screamed bloody murder about the no-bid contracts awarded by the George W. Bush administration to defense contractors?

Well, it’s time to mount their high horses again and demand accountability.

I’m looking at you in particular, Jon Stewart.

Tom Bevan thinks so.

“Any corporation that allowed a COO to mismanage a new product line as important to its image as the Affordable Care Act is to Obama’s would be contemplating their severance package,” writes the Executive Editor of RealClearPolitics.

“The fact that Republicans haven’t called for Sebelius’ scalp should tell Democrats all they need to know about how much conservatives think she is hurting Obamacare’s cause. If the president cares about rescuing his signature policy initiative, he should consider putting it under new management right away.”

Though cathartic, I’m not sure Bevan’s idea helps the GOP all that much.

True, if Obama fired Sebelius it would touch off a huge confirmation battle over her successor as Secretary of Health and Human Services, the agency overseeing Obamacare’s implementation. But since Democrats control the Senate, confirmation would be won eventually.

Better, I think, to schedule a series of high-profile congressional hearings to grill Sebelius, her deputies and the contractors responsible for the glitch-heavy federal insurance exchange website. Sebelius is fast-becoming the bureaucratic face of Obamacare – let her try to defend it.

The tone coming from House GOP members should be sharp but measured. Already, Speaker John Boehner has used a line that would be devastating to repeat to every pro-Obamacare witness at every hearing:

“How can we tax people for not buying a product from a website that doesn’t work?”

Then there are the simple questions Sebelius couldn’t answer in a cringe-inducing appearance on The Daily Show.

Host Jon Stewart – an Obamacare supporter who thinks America deserves a single-payer system – got no good answers from Sebelius about why Healthcare.gov stinks and businesses get a one year mandate delay but individuals do not.

In response, Sebelius said – without a shred of evidence – that the site is getting better, and that individuals can delay the mandate, so long as they pay a fine.

If that’s the best she can do with a friendly host, imagine the possibilities under good cross-examination at a House hearing.

No, Obama shouldn’t fire Sebelius until House Republicans get a chance to turn up the heat.

Healthcare.gov, Obamacare’s federally-run, error-prone health insurance exchange, costs north of $500 million, according to the best information available.

To put this in perspective, compare that amount to the operating budgets of some of the tech industry’s biggest names:

·    Facebook operated for six years before passing the $500 million mark in 2010

·    Twitter operated for five years on $360.17 million in total funding

·    Instagram used $57.5 million before being bought by Facebook last year

·    LinkedIn has raised $200 million, while Spotify has raised $288 million

Despite the huge funding disparities, however, all of these private sector firms fielded much better online products than the glitch-filled, click-and-crash monstrosity offered by the Obama administration.

After more than a week of operation, Healthcare.gov is doing little more than waste people’s time.

Defunding never looked so good.

In a wide-ranging indictment of Britain’s National Health Service (NHS), Philip Klein describes just how easy it is for government-run health care to turn into a nightmare.

“One of the most recent scandals has its roots in the 1990s, when the NHS established a set of best practices for providing care to patients at the end of their lives. Known as the Liverpool Care Pathway, it has since been applied to hundreds of thousands of people,” writes Klein.

“Last November, the Mail reported, an independent review found that 60,000 people were put on the pathway without their consent and a third of the time families weren’t even informed. Thus, they had no idea that their close relatives were removed from life support equipment and were being denied nourishment. In extreme cases, nurses shouted at relatives who attempted to give their dying loved ones sips of water. According to the Mail, hospitals were given incentive payments for putting more people on the pathway – effectively, the government was providing bonuses for ending people’s lives earlier.” (Emphasis added)

After a huge outcry, NHS is abandoning the Liverpool Care Pathway, admitting that “Caring for the dying must never again be practiced as a tick-box exercise and each patient must be cared for according to their individual needs.”

This is welcome news for those saved from murder, but it is cold comfort for the 60,000 Britons who were intentionally killed by their caregiver.

As this example from the world’s most famous single-payer health system attests, death panels are a logical extension of government-run health care. Cost-benefit calculations can easily be made to discard individuals for the sake of the faceless collective; especially when the doctor, the actuary, and the bean counter all work for the same government.

Interestingly, Senator Bernie Sanders (I-VT) didn’t mention any of the horrors Klein catalogues in his op-ed to Britons explaining why Obamacare is a “good first step” toward a single-payer system like NHS.

No wonder.

Disfiguring the truth seems to be one of the primary skill sets at Covered California, the state’s Obamacare-aligned insurance exchange.

When the online platform launched on Tuesday, it erroneously stated receiving 5 million hits. A day later, that number was revised down to 645,000.

“Someone misspoke and thought it was indeed 5 million hits. That was incorrect,” said a Covered California spokesman.

This isn’t the first time the Golden State’s Obamacare exchange has been caught misstating the truth.

Earlier this year it misleadingly announced that individual insurance premiums in 2014 would be lower than they are today. The news was quickly circulated as a refutation of the criticism that Obamacare’s heightened coverage requirements will necessarily result in more expensive plans.

But Covered California’s own press release showed that the exchange was comparing apples to oranges. Instead of comparing individual insurance rates from 2013 to 2014, it compared small business rates from 2013 to individual rates in 2014. This sleight-of-hand had the effect of creating a more favorable (i.e. higher) baseline from which to compare Obamacare’s higher individual rates.

In other words, it was a distortion meant to persuade people that Obamacare does the opposite of what it actually did.

And now Covered California is issuing “incorrect” opening day numbers that artificially inflate its popularity.

Call me a cynic, but I think I see a pattern here…

It took United Airlines offering to bailout the Pentagon, but it looks like the privately funded Navy-Air Force college football game will be played as scheduled this Saturday.

On Tuesday, Obama administration officials at the Department of Defense had suspended all athletic contests at the three service academies because of the government shutdown.

But after an outcry over the cravenly political move, United Airlines offered to fly the entire Air Force football team for free to Annapolis. That, apparently, shamed Pentagon officials into letting the game go on as scheduled.

It’s good to see that college kids training to defend our nation won’t be used as pawns by liberals trying to score political points over the funding impasse. But it’s still distasteful that this disgusting strategy was used in the first place.

First the Obama administration barricaded veterans from visiting the open-air World War II monument.

Then it ordered the forced closure of a privately-funded colonial farm.

Now comes word that the Department of Defense is ordering the service academies to suspend all intercollegiate athletic events during the government shutdown because of “optics.”

On Tuesday, a soccer game between the Naval Academy and Howard University was postponed indefinitely due to an order from DOD.

Up next may be the nationally televised football game between Navy and the Air Force Academy scheduled for Saturday.

“The potential revenue loss to the Naval Academy Athletic Association would likely exceed $4 million,” a Naval Academy spokesman told the Capital Gazette. “That money comes from ticket sales, sponsorship, parking and concession revenue. The largest revenue stream is the payout NAA receives from CBS Sports Television.”

The worst part about this – The athletic program at Navy is completely funded by private donors. Air Force could make the trip without using any government money as well.

In other words, all expenses for Saturday’s game could be held without congressionally appropriated funding, yet the political officials running the military won’t allow it to happen.

When asked for DOD’s rationale, Navy’s Athletic Director said he was told it was about “optics.” “It’s a perception thing. Apparently it doesn’t resonate with all the other government agencies that have been shut down,” he said.

This isn’t politics. It is ugliness pure and simple.

H/T: National Review Online

Unlikely? Sure. But nonetheless a group of pro-Putin Russians sent a letter to the Nobel Peace Prize committee requesting consideration for their country’s president.

“The group says Putin deserves the honor for his efforts in brokering an agreement for Syria to hand over its chemical weapons under international control, a plan the group says helped avert a ‘new world war,’” according to Breitbart.com.

Then the story stops being funny.

Drawing a contrast to President of the United States Barack Obama, the group’s leader says that Putin, “who is trying to stop the war and suggest a political solution, is more worthy of such a title.”

Now, of course Putin – the man who invaded South Ossetia during the 2008 Summer Olympics – is no peace-loving reincarnation of Ghandi. The lifeline he threw to Obama over Syria was nothing more than a canny power politics move that makes it easier for his authoritarian allies in Damascus to oppress their people with impunity.

Still, the argument that Putin deserves a fair hearing to receive the Peace Prize is at least plausible since the committee in charge of conferring it debased its standards by awarding its 2009 installment to Obama on the pretext that he might do something worthy to receive it.

Four years later, Obama was poised to start a war until Putin negotiated a European-style system of endless weapons inspections and diplomatic meetings. Had the roles been reversed, Obama supporters would be claiming their man made good on the Nobel’s committee’s prediction. But since history played out the other way, perhaps the American president can do the Norwegians a favor and mail their devalued token to Russia.

However tonight’s government shutdown/showdown plays out, tomorrow’s big news is likely to be how well the 51 ObamaCare insurance exchanges are performing.

Projections don’t look pretty, according to the New York Times.

A few of the low-lights include:

·    The District of Columbia will not be able to determine online whether people qualify for Medicaid or for a federal subsidy (the difference is crucial)

·    In Nevada, a Spanish-language version of the exchange’s website will not be ready until mid-November

·    In Maryland, small businesses will not be able to buy insurance for their employees until January

Rocky King, Oregon’s exchange director and winner of the Mr. Honesty award, tells the Times, “I have no idea what this thing’s going to look like on Oct. 1. We could crash and burn and have to close it down.”

We’ll know soon enough.

“Most of the 50 local governments with the largest pension debt have worker retirement liabilities that are greater than their annual tax revenue, according to a new report from the credit-rating firm Moody’s,” says the lead in a Washington Post story.

The emerging leader in the deepening pension saga is Chicago, whose “pension liabilities were equal to 678 percent of its revenues as of 2011,” notes US News & World Report.

Here are the others in the top (or is it bottom?) ten:

Rank Debt Issuer Pension Liabilities as Percentage of Revenue

1. Chicago 678.2 percent

2. Cook County (Ill.) 381.6

3. Denver County School District 1 341.6

4. Jacksonville, Fl. 326.9

5. Los Angeles 324.5

6. Metro. Water Reclamation District of Chicago 323.4

7. Houston 312.4

8. Dallas 292.5

9. Clark County (Nev.) School District 259.1

10. Phoenix 240.2

Referring to a yearlong delay in imposing ObamaCare’s individual mandate, Senator Joe Manchin, Democrat of West Virginia, told Bloomberg, “There’s no way I could not vote for it. It’s very reasonable and sensible.”

Indeed, it is. Conservative health policy experts James Capretta and Yuval Levin make a persuasive case on the merits for doing so. The core of their argument: It’s just plain fair.

Ever since the Obama administration decided to delay the employer mandate for a year Republicans have argued that the same relief should be extended to individuals and families.

Putting a one-year delay of the individual mandate into each of the next “must-pass” bills would give Republicans in Congress the leverage they need to put Democrats on the record.

Is shutting down the government more important than treating families at least as good as businesses? Is raising the debt ceiling?

If liberals want to bring government to a standstill to defend discrimination, let them.

Chances are, if Republicans pursue this strategy more red state Democrats like Manchin will also come to see the GOP’s delay proposal as “very reasonable and sensible.”

As Manchin points out, “If you know you couldn’t bring the corporate sector, you gave them a year, don’t you think it’d be fair?”

Sounds good to me, Senator. Time to convince a few more members of your caucus.

With ObamaCare’s insurance exchanges going online next week, there is suddenly an avalanche of information confirming that the law is bending the cost curve significantly upward for people already buying health insurance on the individual market.

The most famous example so far is conservative pundit Michelle Malkin’s notice that her high-end PPO policy is being eliminated by her insurance provider in order “to meet the requirements of the new laws,” i.e. ObamaCare.

Jim Angle of Fox News describes how a Kentucky family’s monthly premium is set to spike from $333 to $965. Humana, the family’s insurance provider, explains that “Increases aren’t based on your individual claims or changes in health status. Many other factors go in to your premium including: [ObamaCare] compliance, including the addition of new essential health benefits.”

Those “new essential health benefits” are a big part of what will make many plans bought by individuals and families unaffordable under ObamaCare.

As I write in this week’s column, the disruptive impact of ObamaCare on the self-employed is just one element of many that, taken together, articulates ObamaCare’s biggest lie.

Defund, repeal or replace – whichever it is, this law cannot be allowed to stand.

Sarah Kliff, a liberal health policy blogger at Wonkblog, explains why the Obama administration won’t delay the individual mandate like it has other elements of ObamaCare.

“…all the delays so have one thing in common: They erased political headaches for the law while barely denting the number of people that the health overhaul will cover in 2014,” writes Kilff. “The delays Republicans are asking for now would cause major political and substantive headaches for the law while sharply reducing the number of people it covers.”

The political headaches Kliff alluded to include vociferous opposition by businesses to the employer mandate. That’s because, once implemented, the employer mandate – the requirement to provide government-approved health insurance on any firm employing 50 or more full-time workers or pay a fine – will very likely result in shedding jobs to avoid compliance costs.

“This predictable employer response is a very good reason to want to postpone the mandate until after the midterm,” wrote Walter Russell Mead said when the employer mandate delay was announced this summer. “Nobody wants to run as an ally of the job-killing President whose policies led your voters’ employers to dump their health insurance.”

It’s both refreshing and appalling to see an ObamaCare cheerleader like Kliff admit that the only kind of acceptable delays are the ones that politically advantage the Obama administration.

No wonder opponents see the only real solution to ObamaCare’s metastasizing problems as repealing and starting over.

Here’s the immigration reform version of “we have to pass the bill so you can find out what is in it.”

Speaking to attendees at the Congressional Black Caucus’s annual conference, Esther Olavarria, the White House’s director of immigration reform, highlighted some provisions of the Senate’s bill that she would like the public to ignore.

Making it easier for illegal immigrants convicted of crimes to stay in the country got special attention.

In Olavarria’s telling, the Senate bill reverses a 1996 law that says any criminal conviction can serve as the basis for deportation. The new language would exempt convictions followed by a suspended sentence, meaning that deportation would not be an option if the offender gets probation instead of jail time.

Bear in mind, the conviction referred to is for a crime separate from illegally entering the country.

Thus, if passed, the Senate bill would not only excuse the foundational illegality of unlawfully entering the country, it would further protect from prosecution those who have been convicted, but not yet served jail time.

But if you haven’t heard about this controversial change in law, Olavarria explains why.

“We haven’t played [them] up because we want to be able to maintain them as we go through the legislative process,” she told the conference attendees. “The bill has a number of other important provisions that have stayed under the radar, and we’d actually like to keep them under the radar.”

That’s because the White House knows it can’t win an open and honest debate about granting illegal immigrants not one, but (at least) two free passes when it comes to breaking the law.

This subterfuge is yet another reason to scrap the Senate’s bill and start over.

H/T: The Daily Caller

Arguably, the most important part of Wisconsin Governor Scott Walker’s reforms of public employee unions was instituting an annual vote by members on whether or not to stay.

Two years later, Wisconsin’s unions are reeling.

“Under Governor Walker’s 2001 union-reform law, a majority of union members have to vote each year to recertify the union as their representative. If less than 50% of members vote to keep the union and pay union dues, the union effectively loses its ability to bargain for wages,” says an editorial in the Wall Street Journal.

It looks like there’s a rush for the exits.

“A spokeswoman for the Wisconsin Education Association Council, the state affiliate of the NEA, said recently, ‘It seems like the majority of our affiliates in the state aren’t seeking recertification…’”

To date, 13% of Wisconsin’s school districts and 39 state and municipal units have been decertified since the law went into effect.

Wisconsin’s experience confirms that, when given a choice, many public employees – and especially teachers – don’t see the value of belonging to a union.

Kudos to Governor Walker for giving them a forum to make that choice.

If you’re looking for talking points to defend the House GOP’s vote to defund ObamaCare today, look no farther than a report released by the chamber’s Government Oversight and Reform committee.

In it, several alarming abuses are described relating to the health law’s controversial “navigators” program. Navigators, CFIF readers will recall, are taxpayer-financed middle men.

Thanks to the House committee’s report, we now know that:

·    The Obama administration has failed to create adequate training standards for Navigators, even though the administration assumes most Navigators will lack prior knowledge of ObamaCare or health insurance markets.

·    Allowing organizations that receive Navigator funding to pay their employees based on the number of individuals they enroll creates an incentive for those employees to provide biased or incomplete information about ObamaCare to maximize enrollment.

·    Despite the statutory requirement that Navigators be free of conflicts of interest, the administration has decided that individuals employed by Navigator organizations will not have to disclose that they are paid per enrollee to individuals with whom they interact.

·    Neither Congress nor an independent entity reviewed the training materials for Navigators, despite the statutory requirement that Navigators provide “fair and impartial information.”

·    Moreover, the incentives that encourage Navigators to maximize enrollment raise the risk of massive fraudulent spending on Medicaid and exchange subsidies for individuals who do not meet eligibility requirements.

·    And get a load of this – Substantial risks remain because the administration decided not to require background checks and fingerprinting of individuals hired by Navigator organizations.

These are just a few of the many, MANY reasons to defund ObamaCare.

Check out the entire report here.

How’s this for gratitude?

A group of pro-amnesty activists chained themselves to the White House fence this week demanding that President Barack Obama stop deporting an estimated 1,000 illegal immigrants a day, reports USA Today.

The chain gang members are affiliated with the National Day Labor Organizing Network. Their specific demand is pretty breathtaking, even by liberal standards.

From their radical perspective, President Obama “has the power to reduce deportations, the legal authority to expand deferred action, and the political obligation to lead the national debate through bold action.” “Unless the President alters course, he risks cementing his legacy as having presided over the most anti-immigrant administration in history,” NDLON’s executive director said in a statement to the Washington Post.

Remember, this is the same president who unilaterally implemented the DREAM Act last summer through executive order, even though the bill has never been passed by Congress. By presidential fiat, up to 1.6 million illegal immigrants will not be deported as required by law.

But NDLON wants more. They claim that despite any explicit statutory or constitutional authority the president has the power to expand deferred action to all illegal immigrants, effectively granting amnesty to 11 million people.

To his credit, President Obama says it can’t be done. Doing so “would be ignoring the law in a way that would be very difficult to defend legally,” Obama told an interviewer on Telemundo.

Much like the administration’s decision last week not to grant an ObamaCare waiver to certain unions, the president’s refusal to double-down on lawless amnesty is an encouraging sign that some measure of respect for the rule of law is emerging at the White House.

Let’s see if it lasts.

The New York Civil Liberties Union and the Goldwater Institute are both warning of dire threats to privacy if ObamaCare’s financial incentives and penalties on doctors aren’t changed soon.

The health law’s ‘reforms’ “aim to turn doctors into government agents, pressuring them financially to ask questions they consider inappropriate and unnecessary, and to violate their Hippocratic Oath to keep patients’ records confidential,” writes Betsy McCaughey in the New York Post.

Topics include asking whether a patient is sexually active, and if so, with what number of partners. Whether a person has same-sex partners is also an area the feds want to know about.

And don’t forget to add in the required questions about a person’s drug history.

Combine this with all the routine yet highly sensitive health information people share with their doctor, and you’ve got the makings for a single-source document that could ruin someone’s life if made public.

To do this, ObamaCare uses financial pressure to compel doctors to participate. Answers go into federally mandated electronic health records. Highly portable, the records can be accessed and shared among regulators.

Resistance won’t be easy.

“Doctors and hospitals who don’t comply with the federal government’s electronic-health-records-requirements forgo incentive payments now; starting in 2015, they’ll face financial penalties from Medicare and Medicaid,” according to McCaughey. “The Department of Health and Human Services has already paid out over $12.7 billion for these incentives.”

And it’s just going to get worse.

Best advice: Try to convince your doctor to keep two sets of books. One that’s real; the other for the Feds.

ObamaCare: Bringing people together in opposition to their government.

Looking for a job? How about getting trained by a government contractor to “forge signatures and falsify data”?

National Review is reporting that a former employee at TerraCom, Inc., a cell phone provider under the federal government’s Lifeline program, was encouraged to use the tactics to help boost the company’s revenues from $32.6 million in 2011 to $52.3 million in 2012.

Though a drop in the bucket for a line-item that costs $2.189 billion, the revelation serves as a reminder for how bad the so-called “Obama Phone” program has been administered.

So does this: “Lifeline’s costs have increased by 166 percent in the past five years,” according to NR.

Hmm… that means the program, around since the 1980’s, dramatically spiked in 2009 and hasn’t stopped since. Any guess as to what – or who – is responsible?