Republican Health Care Reform Strategy - Doubledown to Repeal

The GOP reminds me of a compulsive gambler. A compulsive gambler keeps telling himself that his losing streak is going to end with his last bet. He doesn’t want to quit playing while he’s losing. He knows his luck will change; he just has to hang in there until it does. It usually doesn’t. He stops gambling only when he doesn’t have a penny left to bet with.

The GOP is handling Obamacare just like the compulsive gambler deals with a losing streak. The public may not love Obamacare (mostly because they don’t know what Obamacare is…really). But, most of the public wants to keep Obamacare and improve it. The GOP wants to repeal it and by GOD they aren’t going to change their minds about that.

A couple of years ago most of the Republican lead states decided that they would not expand Medicaid to close the gap between the state’s existing Medicaid program and the Public Exchange. Most states cut off Medicaid below the minimum income to qualify for the Public Exchange. The federal government committed to pay 100% of the cost of expanding Medicaid for the first 3 years and 90% of the cost thereafter. You have to make more than 138% of the Federal Poverty Level in order to qualify for the Public Exchange. Everyone who earns 138% of the FPL or less will be covered by Medicaid. Many states didn’t qualify people up to 138% of the FPL, some states cut off Medicaid if you earn more than 25% of the FPL (about $6,000 for a family of 4). The federal government would pay for the cost of Medicaid for everyone whose income falls between each state’s existing Medicaid maximum income and 138% of the FPL.

However, most Republican lead states like my state of South Carolina, refused to accept the additional federal funding. Consequently, about 11 million people will not have health care coverage in those states. Many of those people will use hospital emergency rooms when they are sick. That cost will be in the billions and will drive up the cost of health care for everybody.

Now you would think that the GOP would accept the federally funded Medicaid expansion if not so that 11 million people have adequate health care, then in order to prevent higher health care costs. But, most of the Red States said no.

Now that Obamacare is up and running successfully and the majority of Americans do not want to repeal Obamacare, why are the Red States not expanding Medicaid? Why are GOP congressmen still calling for the repeal of Obamacare?

Is this a winning strategy or will the GOP lose like the compulsive gambler?

I think they will lose if they keep resisting Obamacare but I could be wrong. Most Americans don’t understand Obamacare, the Public Exchange and Medicaid Expansion and refuse to learn about them. If they did understand, I think they would disapprove of the GOP’s strategy. If enough of them don’t do their homework and know only what the neighbor tells them or what they hear on Fox News then the Republicans may get away with their strategy.

What do you think most Americans will do?

Retirees, Not Millionaires, Will Pay For Extension Of Unemployment Benefits

I read the bill recently passed by Congress which extends the payroll tax cut and unemployment benefits. The Republicans demanded terms that were unrelated and unacceptable to the Democrats and a few moderate Republicans. First the Senate then the House Republicans finally agree to extend the benefits and cuts for two months so that they had more time for debate. The Democrats accepted some of the Republican terms in order to get the temporary extension.

The Republicans wanted to require that all unemployment recipients take a drug test every month as is already required of some welfare recipients. I can't imagine my Mom having to submit a urine sample every time she picked up free food when we were on welfare. Congress compromised, the extension allows (instead of requiring) each state to determine if it will test all recipients for drugs and whether to deny benefits if drugs are detected. Florida required its welfare recipients to pass a periodic drug test. Only 4% tested positive but they spent more money than they saved by testing everybody. I’ll bet the incidence of drug use among temporary unemployed persons is lower than 4%. This is, in my opinion, a way of vilifying the unemployed. A favorite pastime of the self-righteous.

In order to pay for the extended benefits the Democrats wanted to tax people who earn more than one million dollars per year. Republicans disagreed with taxing the Rich - the Republicans demanded that retired persons who earn more than $88,000 a year pay more for Medicare in order to pay for the extension of unemployment compensation and tax cuts. Therefore, I will be paying more for Medicare so that millionaires don't have to pay more income tax. The bill doesn’t state how much more I will pay for Medicare but I am already paying twice the base amount so my guess is that they will probably triple the base amount.

Raising the cost of Medicare for fixed income retired persons instead of raising taxes on those that work and especially those that can afford it is immoral. I don’t really mind that I now pay $1,200 more each year for Medicare because I spent (not earned) more than $88,000 of my IRA savings. And, I don't mind paying $2,400 more for Medicare if everyone is paying a share based on their ability, but the cost is not being shared by all. Only retirees who make more than $88,000 will pay more -multi-millionaires will contribute nothing. I hate any politician who would rather charge the elderly more for their healthcare insurance than increase the tax rate of people who earn more than $1,000,000 per year.

Based on a past proposed rate hike, a person making $1,000,000 per year would not pay an additional tax. The additional tax would apply only to the earnings over $1 million. A person making $2,000,000 per year would pay an additional $5,000 or (0.25% of their total income). Instead, retirees who spend $88,000 of their savings will probably pay an additional $1,200 (1.4% of their income). That doesn’t seem fair to me but it sure makes sense to our congressional Republicans

146 million Americans live in poverty -less than $22,000 for a family of 4; less than $10,000 for a single person. The majority of these are employed or are members of a family with one or more employed people. Most of the people in poverty are working but earn less than $10 per hour. While the working class is making less this year than the year before, the average CEO earns 36.6% more this year than last year. The 10 highest paid CEOs earned a total of $770 million this year. Next year they are expected to earn more than $1 billion but they will not share in paying for the extension of unemployment benefits. I will.

Remember this when you vote in the next election.