By David Beilstein
March 6, 2013
Per: Jonah Goldberg, ObamaCare has problems—as if you didn’t know.
The program was allocated $5 billion, but some estimate that it would take $40 billion to fund the effort. Such surprises are becoming routine. The New York Times has reported that many small and midsize firms may be opting out of Obamacare entirely. “The new health-care law created powerful incentives for smaller employers to self-insure,” Deborah J. Chollet of Mathematica Policy Research told the paper. “This trend could destabilise small-group insurance markets and erode protections provided by the Affordable Care Act.”
It turns out that Obamacare actually makes self-insurance less of a gamble because you can always throw workers on public exchanges without penalty. Naturally, the administration’s response is to look for ways to tighten the ratchet and make self-insurance harder. It’s a typical response. The shortcomings of a wildly ambitious law only justify more regulatory strong-arming.