Sure, the cost of Obamacare health plans is higher, especially the cheapest bronze plans which are going up 15%. But that’s not the only thing wrong with Obamacare. Here are 14 more ways Obamacare is a disaster, as reported by the Federalist.
- Premium Increases
- Exchange Subsidy Roller Coaster
- Reducing the Quality of Insurance
- Slashing Quality of Employer-Provided Insurance
- Here Come the Trial Lawyers!
- Enrollees Are Older and Sicker than Average
- People Dropping Exchange Coverage Are the Ones Exchanges Need Most
- The Exchanges Benefit Big Business at the Expense of Smaller Businesses
- Policy Cancellation Déjà Vu
- Medical Research Has Tanked
- Medicaid Still Provides Terrible Care for the Poor
- The Deficit Will Increase $131 Billion in the Next Ten Years
- Fewer Jobs for Low-Wage Workers
- More Economic Woes Ahead
The last two stuck out to me, because they have to do with jobs.
Obamacare’s employer mandate requires employers with 50 or more full-time employees—“full time” defined as 30 hours or more per week—to provide their workers with health insurance or pay a fine. Critics claimed this would lead to an increase in part-time work leading up to the mandate’s imposition, but many liberal economists insisted part-time work was not increasing. Then Jed Graham of Investor’s Business Daily dug into the data and found that work hours had declined for employees in industries where the average hourly wage was $14.50 or less.
Graham showed that part-time work appeared stable because the decline in hours for low-wage workers was offset by an increase in hours for higher-paid workers. As Graham states, “Overall, in these low-wage industries which employ 30 million rank-and-file workers, the average workweek shrank to 27.3 hours per week in July …. For low-wage industry workers… the recovery in the workweek from a then-record low 27.5 hours in mid-2009 began to reverse in the latter half of 2012, and it’s been pretty much all downhill since then.” Employers appear to be limiting the work hours of employees who are least likely to have employer-provided insurance. Given the low wages, there are likely many workers in this group who are in need of full-time hours.
The employer mandate is causing even more damage as its January 1, 2015 imposition nears. In August, the Federal Reserve Banks of Dallas, New York, and Philadelphia released survey data on how businesses in their regions were responding to the costs of Obamacare. Businesses that had or were expecting to increase part-time employees, outsourcing, and prices far exceeded the number that that had or intended to reduce them. More business also had or intended to reduce the total number of workers and/or wages in response to Obamacare than expected to increase them.
Obamacare is a job killer. And it hurts low-wage workers the most. Imagine what would happen if Obama did an executive order to raise the price of low-wage workers for employers – another incentive to get rid of them. What a disaster.