I’m sure you realize that I will be updating the information on the new tax laws soon. I haven’t decided if I will rewrite the 9 blogs that covered the House and Senate version or just “X” off the parts that didn’t make it to the signed version.  (I’m leaning towards the latter- with only two or three posts to cover the individual and business tax provisions.)

But, I do want to specifically address the nails that the GOP and TheDonald have attempted to put on (what they hope to be) the carcass of PPACA [aka Obamacare].

The first attack – as we’ve discussed- is that TheDonald ensured that the subsidies that the insurance companies were providing those folks who earn only 400% or less of the Federal Poverty Line will no longer be reimbursed by the government.

What that really means is that the insurance companies take a big hit. ($9 billion is certainly NOT chicken feed.) Because the law DEMANDS the subsidized insurance. The act was less than perfectly clear how the government would issuing the reimbursements to the insurance companies, so TheDonald is taking the tack that the government won’t.

Which only means that the insurance rates for those who make MORE than 400% of the poverty line (I am presuming that means most of us) has to go up. Because someone has to pay the insurance company enough money so it can afford to provide the benefits we expect from insurance.

Why only those making more? Because the actual price those who make 400% or less of the poverty line is set. If those rates rise, then the subsidies rise to cover the higher costs. Which is why, for 2018, so many folks were complaining about the rates the insurance companies were offering. Because now every single person buying health insurance has to subsidize the poor, since the government is not doing so.

To make things worse (this is the second attack), the new tax law removed the requirement that everyone obtain health insurance or they would be subject to a fine. Not that the fine was adequate,  but it did collect some money– and didn’t leave the big hole that now obtains in our health care system.

Remember that PPACA removed the ability of an insurance company to penalize anyone for pre-existing conditions? Feel that glimmer of recognition? Yup. Because now, folks can game the system. They can wait until they really are sick to purchase insurance. Without paying higher premiums or a penalty for their gamesmanship.

Which, by the way, was EXACTLY what the GOP claimed would happen under PPACA/Obamacare.  Which didn’t- until they removed the penalty for non-coverage. Now,folks will simply wait until they desperately need the insurance before buying it. Which burdens the insurance company and makes it tough for them to earn a profit.

It really gets worse, if you believe in the  GOP principle of less federal government control and smaller deficits.  After all, these two actions (the non-reimbursement of subsidies and the removal of penalties for non-coverage) have rendered PPACA to become a government-only program.  Without a penalty, pretty much only those who are getting a subsidy or those on Medicaid will stay enrolled.  As of now, those folks between the ages of 18 and 65 that are covered by  private, non-subsidized insurance form exactly the same percentage as obtained back  in 2005.  Yet, those with public or subsidized insurance almost doubled…from 11% to 19.5%.  (Both these data are provided by the National Center for Health Statistics.)

Add this to the deficit-billowing the tax cuts provided the corporate sector and the “Ritchie Rich” of the US (costing the US Treasury some $1.5 trillion), we see those principles only apply when the GOP is not inpower.  (I get it- “Do as I say, not as I do”.)

Yup.  That’s exactly how the US can promote business growth, isn’t it?

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