Repealing O-Care Mandate Is Like Demolishing The First Floor Of A 20-Story Building

By Dick Morris on July 26, 2017

The “skinny” ObamaCare repeal bill that will come before the Senate, if passed, will lead to total destruction and, in effect, repeal of ObamaCare.

The proposal being pushed by the GOP leadership would end the dual mandates: That everybody must have insurance and employers have to provide it. The bill would also repeal the medical device sales tax.

While the repeal will only effect a part of the overall ObamaCare program, it will topple it nonetheless. It is like demolishing the first floor of a twenty-story building: The rest will fall down of its own weight.

Once everybody does not have to buy insurance, many healthy and young people will decide not to — particularly if the Cruz Amendment is defeated and they would have to buy soup-to-nuts insurance with high premiums and coverage they neither want, need, or can afford. With these young, healthy people leaving the pool, premiums will rise further driving more and more younger and healthier people out of he ObamaCare pool.

The total collapse — implosion really — of the entire Obamacare program is sure to follow shortly.

6.5 million people had to pay a fine for failing to have insurance last year and the fines averaged $500 each. A total of more than $3 billion was collected in fines. Those who paid up did not get any insurance but had to pay $500 for the privilege.

If the mandate is lifted, these folks will applaud and probably reward the politicians who repealed it. But it will also leave about 12 million people who now have insurance without any. It will force Congress to pass a replacement bill, likely with bi-partisan support. The catalyst will be the anguished howls of constituents who have lost their coverage.

The only failure in the new path is that the Medicaid entitlement will remain in force. Republicans must unite to end this budget buster. The Medicaid entitlement must be terminated and the programs turned over to the states with caps on annual spending. States can then crack down on fraud and enact utilization controls (like co-payments) to bring the program within their financial reach. Otherwise, all cities will go the way of Detroit and all states the way of Illinois.

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