Category Archives: Jobs

Big Hospital’s Obamacare Hypocrisy

As Republicans prepare legislation to repeal Obamacare, the health care industrial complex has raised a host of concerns. Notably, two hospital associations recently released a report highlighting the supposed negative implications of the reconciliation bill Congress passed, and President Obama vetoed, in January 2016.

While the hospitals allege that repealing Obamacare would decimate their industry, their report cleverly omits four inconvenient truths.

1. They Pushed Bad Ideas Because They Expect Bailouts

In August 2010 at an American Enterprise Institute forum, then-Medicare actuary Rick Foster engaged in a discussion with Chip Kahn, president of the Federation of American Hospitals, about the effects of Obamacare. The non-partisan actuary asked Kahn a simple question: Why did his industry agree to a series of so-called productivity adjustments, which lower hospitals’ Medicare reimbursement rates every year forever, in exchange for a one-time increase in their number of insured patients?

Kahn gave a simple, yet cynical, reply: “You could say, did you make a bad deal, and fortunately, I don’t think I’ll probably be working after 2020 [Laughter.]….I’m glad my contract only goes another six years. [Laughter.]”

Fast-forward those six years to last fall, when the Congressional Budget Office (CBO) analyzed the effects of various Obamacare provisions on hospital margins. The report concluded that even under the best-case scenario—in which hospitals achieve a level of efficiency non-partisan experts doubt they can reach—the revenue from Obamacare’s coverage expansions will barely offset the negative effects of the productivity adjustments. Under the worst-case scenario, more than half of hospitals could become unprofitable by 2025, and the entire industry could face negative profit margins.

Responding to the CBO report, the Federation of American Hospitals put out a statement from none other than Chip Kahn, wailing that “Medicare cuts are taking a punishing toll on the hospitals that serve all of us.” Translation: “Save me from my own stupidity—and the bad deal I cut six years ago!”

Kahn knew full well in August 2010 that Obamacare would eventually decimate his industry, through the cumulative effect of year-over-year reductions in Medicare payments. The laughter during his comments demonstrates Kahn thought it was one big joke. He and his colleagues cynically calculated first that they wouldn’t be around when those payment reductions really started to bite; and second that Congress would bail the hospitals out of their own bad deal—essentially, that hospitals are “too big to fail.”

2. Hospitals Supported Raiding Medicare to Pay for Obamacare

Last year’s reconciliation bill essentially undid the fiscal legerdemain that allowed Obamacare to pass in the first place. In the original 2010 legislation, Democrats used savings from Medicare both to improve the solvency of Medicare (at least on paper) and to fund the new entitlements.

The reconciliation bill would have repealed the new entitlements, and—in a truly novel concept—used Obamacare’s Medicare savings to…save Medicare. Instead, the hospital industry wants to continue the budget gimmickry that allows Medicare money to be spent twice and used for other projects.

3. Hospitals Believe Entitlements Are for Them, Not You

Last year, researchers from MIT released a major paper using the Oregon Health Insurance Experiment—in which winners of a random lottery won the right to Medicaid benefits, while others did not—to calculate the utility of Medicaid coverage. The study found that most beneficiaries valued their coverage at between 20 and 40 cents on the dollar. In other words, if given the choice between Medicaid coverage valued at $3,000 and cash in the amount of $1,500, most beneficiaries would take the cash.

In theory, individuals receiving cash contributions in lieu of Medicaid coverage could improve their health in all sorts of ways—buy healthier food, obtain transportation to a higher-paying job, move to a better apartment closer to parks and recreation. But who would object to giving patients cash to improve their health instead of insurance? You guessed it: Hospitals.

Hospitals view Medicaid as their entitlement, not their patients’. That’s why hospitals have worked so hard for Obamacare’s Medicaid expansion. It’s also why they wouldn’t support diverting money from coverage into other programs (e.g., education, housing, nutrition, etc.) that could actually improve patients’ health more than insurance, which has been demonstrated not to improve physical health outcomes.

4. Insisting Health Care Is Their Personal Jobs Program

Hospitals will claim that repealing Obamacare will cost industry jobs, just as they pushed for states to expand Medicaid as a way to create jobs. But economic experts on both sides of the aisle find this argument frivolous at best. As Zeke Emanuel, a former Obama administration official, has noted: “Health care is about keeping people healthy or fixing them up when they get sick. It is not a jobs program.”

Likewise, conservative economist Katherine Baicker has questioned “The Health Care Jobs Fallacy.” All spending will create jobs, one way or another. After all, if you’re looking to keep people employed, paying them to dig ditches and fill them in again will do the trick. But Baicker notes that it’s a far different thing to argue that health care represents the bestand most efficient use of resources—better than, say, building roads and bridges, lowering taxes, or even repaying the deficit.

The health-care sector seems to believe they have a God-given right to consume at least one-sixth of the economy (and growing). Rebutting hospitals’ argument—that they, and only they, can create jobs—might represent the first step in lowering health costs, which would help non-health sectors of the economy grow more quickly.

This post was originally published at The Federalist.

Medicaid Expansion and the Economy

Last week, the White House released a report outlining the economic benefits to states of expanding Medicaid. The report continues a line of argument the Obama administration has used in encouraging states to expand Medicaid under the Affordable Care Act, the president’s health-care law.

The administration faces several obstacles in attempting to sell this argument to reluctant states.

The first is the argument I outlined yesterday—namely, the “poverty trap” exacerbated by several elements of Obamacare. In addition to concluding that the law as a whole will reduce the size of the labor force by the equivalent of approximately 2.3 million full-time workers in 2021, the Congressional Budget Office specifically has found that “expanded Medicaid eligibility under [the law] will, on balance, reduce incentives to work.” For instance, while individuals who exceed the threshold for Medicaid eligibility will likely become eligible for subsidized premiums on insurance exchanges, they would also become subject to thousands of dollars in premium payments and cost-sharing—all because of a potentially small increase in income. CBO has found that these kinds of “cliffs” discourage work.

Second, the Obama administration has rejected requests from states to impose work or job-search requirements in conjunction with the Medicaid expansion. While the administration has claimed to offer flexibility to states when it comes to altering the Medicaid benefit, it has steadfastly refused to consider any mandatory work or job-search requirement. Given the CBO’s analysis, the administration faces a rhetorical challenge in explaining how expansion can benefit the economy yet simultaneously reduce incentives to work—particularly as it declines to give states the ability through work requirements to mitigate against those disincentives.

Additionally, the White House report solely examines the benefits of increased federal funding to states without examining the source of that funding. Most notably, the health law included more than 18 tax increases, which according to the most recent CBO estimates will raise over $1 trillion in revenue—with obvious dampening effects on state economies. 

Perhaps most importantly, various economists, including Harvard’s Katherine Baicker, have dismissed the notion that health care should serve as an economic engine. While the administration claims states that expand Medicaid will grow their economies, it has made no attempt to argue that expansion represents the most economically efficient use of those dollars—that the funds could not be better used building roads, returned to citizens, or even remain in the Treasury to reduce the federal deficit. In that sense, then, the administration might do well to heed one of its own former officials—Ezekiel Emanuel, former official in the Office of Management and Budget: “Health care is about keeping people healthy or fixing them up when they get sick. It is not a jobs program.”

This post was originally published at the Wall Street Journal’s Think Tank blog.

CBO’s Dynamic Scoring and Obamacare’s “Poverty Trap”

Congressional Budget Office Director Keith Hall testified before the House Budget Committee last week about how dynamic scoring–considering macroeconomic effects of legislative proposals–affects the agency’s work. It could have a major effect on entitlement spending proposals.

Most of the debate over dynamic scoring has focused on the economic impact of tax cuts and government spending. Dr. Hall’s testimony highlighted a less discussed but equally important related element: the way that means-tested government programs lower economic growth by effectively raising marginal tax rates. For instance, a single mother making $20,000 per year might pay not only 15 cents in taxes for every additional dollar of income raised; her eligibility for food stamps, Medicaid, and the Earned Income Tax Credit might also be reduced or eliminated. The Urban Institute’s Gene Steuerle has calculated that these programs amount to a “poverty trap” for families of modest means by taking away as much as 80 cents out of every dollar in added income through a combination of higher taxes and reduced government benefits.

CBO has conducted two analyses related to Obamacare that showed that the health law would exacerbate this—discouraging work and reducing the size of the labor force. The first analysis, released in August 2010, found that the law would reduce the U.S. work force by about half of one percentage point–the equivalent of approximately 800,000 workers by 2021. The second, released in February 2014, roughly tripled that estimate to 1.5% to 2% of the labor force, or about 2.3 million workers in 2021.

I have written previously about CBO’s analysis of the Affordable Care Act and the impact of dynamic scoring under the agency’s previous director, Doug Elmendorf. In his testimony last week, Dr. Hall said that the reduction in government revenues caused by the way Obamacare discourages work is likely to lower the cost of repealing the law.

As Dr. Hall noted, these are early days for CBO’s obligations of dynamic scoring for major legislation. But to the extent that debates over dynamic scoring focus on whether tax cuts or economic stimulus measures “pay for themselves” through greater economic growth, they miss an important issue. The poverty trap that government policies have created — and possibly was exacerbated by Obamacare — by providing a disincentive for people to take on initiatives that might raise their incomes impedes economic growth and hinders the ability of millions of Americans to achieve their dreams.

This post was originally published at the Wall Street Journal’s Think Tank blog.

CBO, Transparency, and Obamacare’s Deficit Impact

Before a House rules change in January, CBO generally had not applied “dynamic scoring” to major legislation, or considered likely macro-economic effects when analyzing a bill’s potential impact on the deficit. On Friday, in response to follow-up questions from a January congressional hearing, CBO said that had it conducted such an analysis of Obamacare, it would have found that the bill reduced the federal deficit by less than its original projections.

In short: Because CBO believes the health-care law will discourage work, it would lower federal revenues—but the agency did not consider the revenue impacts of these effects in 2010, when it projected that the law would reduce the federal deficit.

Although CBO does not usually estimate macroeconomic effects of major bills, it has done this. In 2013 the agency “relaxed” its score-keeping convention with respect to immigration legislation in the Senate, concluding that the bills under consideration would increase the labor supply and economic growth and thus federal revenues. Both the 2013 Senate immigration bill and Obamacare would have altered the U.S. workforce by millions of workers. That CBO went to great lengths to estimate the macroeconomic and fiscal effects of Senate legislation never enacted but has yet to do so with Obamacare raises questions about the agency’s policies for scoring legislative measures.

CBO has conducted two analyses of the health-care law’s impact on labor markets, but these did not say that the law’s effects on the labor force would impact its potential deficit reduction. The first analysis, released in August 2010, said that Obamacare would reduce the workforce by about half a percent, or approximately 800,000 workers, by 2021. The second analysis, released in February 2014, roughly tripled that estimate, to 1.5% to 2% of the labor force—the equivalent of approximately 2.3 million workers in 2021. CBO could have publicly stated that these labor-force changes, and the related revenue effects, would negatively affect the deficit, even if it could not specify by how much.

CBO said last summer that it would no longer produce estimates for the fiscal impact of the health law as a whole. It also declined to release a score of legislation repealing the law before last month’s House vote. In a blogpost last June, Mr. Elmendorf wrote that CBO and the Joint Committee on Taxation “have no reason to think that their initial [March 2010] assessment that the ACA would reduce budget deficits was incorrect.” But the agency’s statement on Friday illustrates that the 2010 deficit assessment was incomplete and could be incorrect. CBO appears to have no intention of correcting this flaw or revealing Obamacare’s true fiscal impact.

CBO’s statement Friday was released to select congressional offices the same day Keith Hall was named as Mr. Elmendorf’s replacement. As CBO’s past analyses of Obamacare’s impact on the labor market received much press fanfare, the down-playing of this information seems straight out of “The West Wing.”

One hopes that under Dr. Hall’s leadership CBO will address a few issues, including a revised score of Obamacare that accounts for the legislation’s impact on labor markets and a broader discussion about the need to consider macroeconomic effects when analyzing bills as large in size and scope as the 2,700-page health-care law. CBO is accountable to Congress and taxpayers; it can act accordingly starting with more transparency.

This post was originally published at the Wall Street Journal’s Think Tank blog.

Morning Bell: How Obamacare Discourages Work and Marriage

We were told that Obamacare was supposed to be compassionate toward the needy in America.

While President Obama and his fellow liberals may have held the best of intentions while ramming Obamacare through Congress, the law’s policies are far from compassionate toward the uninsured and Americans with low and modest incomes.

In fact, the law perpetuates some of the country’s worst trends that trap people in poverty. It includes disincentives for individuals to marry and for Americans of low and modest incomes to work. Discouraging work and marriage will only perpetuate poverty and income inequality, not alleviate them.

Discouraging Work

The way Obamacare calculates federal premium subsidies and cost-sharing subsidies includes several “cliffs.” A person might qualify for a hefty subsidy at his current income, but if he gets a raise and makes a little more, that Obamacare subsidy disappears.

At these cliffs, individuals and families will actually benefit more by working less because additional earnings could cause them to lose thousands of dollars in taxpayer-funded subsidies.

Families facing these kinds of poverty traps may ask the obvious question: If I will lose so much in government benefits by earning additional income, why work?

Rather than encouraging hard work, initiative, and entrepreneurship, Obamacare instead undermines these essential American values.

Discouraging Marriage

Obamacare contains not one, but two penalties on marriage—one for families with low and moderate incomes and another for families with higher incomes. By continuing failed policies that undermine the institution of marriage, Obamacare will accelerate a root cause of income inequality in the United States.

Here’s an example. A 50-year-old non-smoker making $35,000 per year would qualify for a sizable insurance subsidy, according to the Kaiser Family Foundation’s insurance subsidy calculator. The individual’s premium would be capped at 9.5 percent of income, resulting in an insurance subsidy of $2,065 paid by the federal government.

However, if this 50-year-old is married to another 50-year-old who also makes $35,000 per year, the couple would receive no insurance subsidy at all. This couple would incur a marriage penalty of $4,130 in one year—equal to the $2,065 that each individual could have received if they were not married.

As Urban Institute fellow Gene Steuerle has said: “Our tax and welfare system thus favors those who consider marriage an option—to be avoided when there are penalties and engaged when there are bonuses. The losers tend to be those who consider marriage to be sacred.”

Obamacare sends a clear message that reliance on government is preferable to these traditional American values—work and marriage.

Our health care policy should not be undermining these foundations of society. For a more commonsense approach to health care reform, check this out.

This post was originally published at the Daily Signal.

Report Reveals Obamacare’s Side Effects: Higher Costs, Fewer Jobs

What will Obamacare mean for American businesses? Higher costs, according to a report released yesterday from consultants at Mercer.

Here are the preliminary results from Mercer’s annual survey of large employers about the impact of Obamacare:

Costs Continue to Rise: Despite the moderating effects of the recession in dampening consumer demand, “employers expect health benefit cost per employee will rise by 4.8 percent on average in 2014.” Recall that then-Senator Obama promised in 2008 that his health plan would lower health costs by an average of $2,500 per family.

Obamacare’s Mandates Hitting Many Businesses: “About a third of all large employer health plan sponsors (those with 500 or more employees) do not currently offer coverage to all employees working 30 or more hours per week, as will be required under the [law] beginning in 2015. Industries that rely heavily on part-time workers will be the hardest hit by this rule. About half of respondents in retail and hospitality currently do not offer coverage to all employees working 30 or more hours per week.”

Obamacare Will Raise Costs by at Least 2 Percent for Majority of Firms: “When asked to consider the impact of higher enrollment and new [Obamacare] fees…about half of the employers surveyed say they will spend at least 2% more on health benefits in 2014 – over and above the normal increase in cost. Another third are unable to predict. Only about a fifth of employers are confident that [Obamacare] will have little or no impact on spending in 2014.” The Mercer consultants also pointed out that Obamacare could impose additional costs on businesses once the delayed employer mandate takes effect in 2015.

More Workers Will See Their Hours Cut: “Some employers will minimize the number of newly eligible employees by cutting back on hours for at least a portion of their workforce – 11% of all large employers say they will do so.”

The impact of Obamacare on the American economy is well-documented, and growing. It’s why Congress needs to stop Obamacare now.

This post was originally published at the Daily Signal.

Hospital Finds Obamacare Harmful to Its Health

Last night the Newark Star-Ledger reported that Obamacare is causing one large New Jersey hospital to lay off workers:

Barnabas Health, the second-largest private employer in the state, said today it was forced to lay off employees because of pressures brought about by healthcare reform….“Healthcare reform, in combination with Medicare cuts, more patients seeking outpatient care and decreasing patient volumes,” a spokeswoman for Barnabas said in a statement. “As a result, we have made the difficult decision to reduce our workforce.”

This move was both predictable and predicted. Even though hospital industry lobbyists supported Obamacare three years ago, the law contains Medicare provisions that will decimate the industry over the long term. As Heritage Foundation President Jim DeMint wrote earlier this week:

ObamaCare’s reductions in Medicare spending could undermine the health system for millions of seniors. According to the non-partisan Medicare actuary, the law’s arbitrary spending reductions could cause 15% of hospitals to become unprofitable by 2019, and as many as 40% of hospitals to become unprofitable in the long term. These hospitals could face the choice between shutting out seniors or shutting their doors for good.

Nancy Pelosi famously said we had to pass the bill to find out what’s in it. Hospitals, whose Washington lobbyists endorsed the law, are now finding out that Obamacare will harm them significantly—and hospital workers are finding out Obamacare could cost them their jobs.

Expanding health insurance coverage even as hospitals lay off staff—potentially reducing, not increasing, access to care—isn’t reform. For this and many other reasons, Congress needs to stop Obamacare now and focus on creating health care solutions that work.

This post was originally published at the Daily Signal.

Morning Bell: Obamacare’s Dirty Dozen Implementation Failures

Last week, the Obama Administration attempted to spin its announcement of a one-year delay in Obamacare’s employer mandate as an effort to implement the law “in a careful, thoughtful manner.” Don’t be fooled. Even Democrats have admitted the law has turned into a massive “train wreck,” with delays, glitches, and problems aplenty. Here are a dozen more Obamacare implementation failures.

1. The CLASS Act: ABANDONED, THEN REPEALED

One Democrat famously called this new long-term care entitlement “a Ponzi scheme of the first order, the kind of thing that Bernie Madoff would have been proud of”—and so it proved. In the fall of 2011, the Department of Health and Human Services (HHS) admitted CLASS could not be implemented in a fiscally sound manner—and Congress eventually repealed the program outright.

2. Exchanges: MISSED DEADLINES

Most states resisted Obamacare’s call to create insurance exchanges, choosing to let Washington create a federally run exchange instead. However, a Government Accountability Office report released last month noted that “critical” activities to create a federal exchange have not been completed, and the missed deadlines “suggest a potential for challenges going forward.”

3. HHS mandate: DELAYED; UNDER LEGAL CHALLENGE

Last year, the Administration announced a partial delay for Obamacare’s anti-conscience mandate. However, many employers have filed legal actions against the mandate, which forces them to fund products they find morally objectionable or pay massive fines.

4. Small business plan choice: DELAYED

The Administration announced in April that workers will not be able to choose plans from different health insurers in the small business exchanges next year—a delay that liberal blogger Joe Klein called “a really bad sign” of “Obamacare incompetence.”

5. Child-only plans: UNINTENDED CONSEQUENCES

drafting error in Obamacare has actually led to less access to care for children with pre-existing conditions. A 2011 report found that in 17 states, insurers are no longer selling child-only health insurance plans, because they fear that individuals will apply for coverage only after being diagnosed with a costly illness.

6. Basic health plan: DELAYED

This government-run plan for states, created as part of Obamacare, has also been delayed, prompting one Democrat to criticize the Administration for failing to “live up” to the law and implement it as written.

7. High-risk pools: UNDERPERFORMING; FUNDING LOW

This program for individuals with pre-existing conditions faced higher costs and lower enrollment than advertised. Though it was originally projected to cover up to 700,000 individuals, only about 110,000 have enrolled—yet the Administration had to halt new enrollment and take other radical measures to prevent the $5 billion program from running out of money.

8. Early retiree reinsurance: BROKE

The $5 billion in funding for this program was intended to last until 2014—but the program’s money ran out in 2011, two years ahead of schedule.

9. Waivers: UNINTENDED CONSEQUENCES

After the law passed, HHS discovered that some of its new mandates would raise costs so much that employers would drop coverage rather than face skyrocketing premiums. Instead, the Administration announced a series of temporary waivers—and more than half the recipients of those waivers were members of union health insurance plans.

10. Co-ops: DEFUNDED

Congress blocked additional funding to this Obamacare program in January, and with good reason: In one case, a new health insurance co-op was called “fatally flawed” by Vermont’s state insurance commissioner.

11. “Employee free choice”: REPEALED

This provision, which would have allowed certain workers to use contributions from their employers to buy exchange health plans, was repealed in April 2011, as businesses considered it too complex and unworkable.

12. Medicaid expansion: REJECTED BY MANY STATES

Last year, the Supreme Court made Obamacare’s Medicaid expansion optional for states, ruling that Obamacare as written engaged in “economic dragooning” that puts “a gun to the head of states.” Many states are resisting Obamacare’s call to expand Medicaid, knowing that expansion will saddle them with additional, unsustainable costs.

As these examples demonstrate, it’s not just the employer mandate that’s flawed—it’s the entire law. Recognizing these myriad, massive failures, Congress should hold the line and refuse to spend a single dime on Obamacare implementation.

This post was originally published at the Daily Signal.

The Massive Costs of the Latest Obamacare Waiver

Policymakers are still recovering from yesterday’s shocking admission by the Administration that it can’t implement Obamacare’s employer mandate without destroying jobs.

The announced one-year delay in enforcement brings with it an immediate revenue loss. But by further encouraging firms to drop coverage now—allowing businesses to privatize gains and socialize losses—the change could cause federal spending on Obamacare exchange subsidies to soar.

The Congressional Budget Office (CBO) estimated in May that the employer mandate would raise $10 billion in revenue in its first year. (Because the employer mandate is a tax penalty, firms will pay the penalties the following year—penalties for 2014 will be paid in 2015; penalties for 2015 will be paid in 2016, etc.) That $10 billion in employer mandate revenue projected for fiscal year 2015 will almost certainly disappear.

Then there’s the separate question of whether, when, and how employers will drop their health insurance plans and dump their workers on the exchanges. Here’s what we know on that front:

  • In its most recent economic forecasts in February, the CBO estimated that unemployment would average 7.8 percent in 2014. That number is nearly three percentage points higher than the CBO’s estimate of 2014 unemployment at the time of Obamacare’s passage. Because unemployment will be higher than the CBO first projected when Obamacare passed, firms will have more incentive to drop health insurance now, while labor markets are more competitive and workers have fewer employment options.
  • The CBO now projects that, if firms do drop health coverage, insurance subsidies on exchanges will average $5,290 per enrollee next year. By comparison, shortly after Obamacare passed, the CBO projected subsidies would average $3,970 in 2014. In other words, the projected average subsidy for 2014 has grown by one-third since the law passed.
  • As we documented last week, since Obamacare’s enactment, the CBO has increased the number of projected uninsured and decreased the number of individuals projected to retain their employer coverage.

Over the past several years, numerous studiespapersbriefsreportsemployer questionnairesconsultant presentationssurveysop-edsinterviewsquotes, and comments from Democrats suggest that employers will drop coverage in significant numbers, resulting in trillions of dollars of added federal costs. Even Jon Stewart, in an interview with Health and Human Services Secretary Kathleen Sebelius last year, would not believe that employers would keep offering coverage:

Is the penalty more than the [cost of] insurance?… Is there a consequence other than a fine or shame—cause I know the shame thing’s not gonna work.

Instead of facing a decision to pay more than $10,000 for a worker’s insurance policy or pay a $2,000 per-employee penalty, employers next year will now be able to raise their workers’ wages to compensate them for the loss of their health plans. And the cost of that choice—which some would argue is so obvious as to not be a choice—could result in skyrocketing federal spending.

This post was originally published at the Daily Signal.

It’s Official: Administration Admits Obamacare Is a Job-Killer

Bloomberg News reported this evening that the Obama Administration is set to announce a one-year delay in enforcement of Obamacare’s employer mandate, a move the Treasury Department recently confirmed in a blog post.

However, the problem is not just Obamacare’s employer mandate—the real problem is Obamacare itself. The same individuals who said Obamacare would create jobs, not destroy them, are now the same ones who will say the Administration can “fix” the employer mandate, if only given another year to do so. Conservatives should not be fooled, appeased, or assuaged. Instead, today’s developments should provide every incentive for the American people to redouble their efforts to repeal, defund, and dismantle ALL of this bureaucratic, unworkable law.

The idea that selectively enforcing one provision of the law could “solve” all the problems inherent in Obamacare is absurd on its face. In fact, the Administration’s position raises more questions than it answers:

  • If the employer mandate will prove so devastating to businesses that it can’t be enforced in 2014—following three years of implementation work—why should it be enforced at all?
  • Will delaying implementation of the employer mandate encourage more firms to drop coverage entirely and dump their workers on to Exchanges, raising the cost of taxpayer-funded subsidies by trillions?
  • What about individuals who can’t afford to buy health insurance, yet will be forced to do so under Obamacare? Will they get an exemption from enforcement as well?

It is hard to understate the impact of today’s devastating admission from the Administration that, after three years, it still cannot implement Obamacare without strangling businesses in red tape and destroying American jobs. That said, it is still not too late for Congress to do the right thing, and refuse to fund what the Administration has now—finally—admitted is a job-killing train wreck.

This post was originally published at the Daily Signal.