Friday, September 20, 2013

A Government shutdown is not leverage



Is the United States the greatest country with the best medical care in the world? An affirmative answer to this question is incongruent with allowing a large population of US citizens to subsist on little to no health care.  Albeit a clumsy effort, the Affordable Care Act attempts to address this incongruence. Either we act like the greatest country in the world, or continue on a hypocritical path. 

A primary argument of detractors to the Affordable Care Act focuses on the increased costs and expense borne by taxpayers. Based on this reasoning, the Act has foisted billions onto the national debt that will subsequently be saved with its repeal. This is a fallacy in that these costs already existed, paid by consumers, state and federal governments.  Prior to passage of the Affordable Care Act, a similar amount of costs were passed onto consumers as a hidden tax through: laws preventing hospitals from turning away people in distress; 4000% variances for the same joint replacement surgery; excessive and sometimes unnecessary prescription costs covered by the faceless healthcare insurer, unseen or unconcerned by the consumer; and lack of preventative care leading to increased Medicaid, Medicare and Social Security Disability claims. Unable to avoid or unwilling to limit these costs, hospitals and insurers pass these costs onto those that do have the ability to pay. 

No doubt, the final form of the Affordable Care Act and its implementation have serious faults.  The Federal Government provides affordable healthcare to hundreds of thousands of individuals which looks nothing like the Affordable Care Act. Historically, government engineered markets have not proven successful. With that, while the Affordable Care Act recognizes the variance of markets between regions and states, providing States funding if only they follow rigid rules (and some yet completed rules) fails the test of ask me to do it or do it yourself, but don’t ask me to do it and then tell me how. Finally, the bungling attempt to solve the problem of ensuring everyone truly participates and has sufficient healthcare coverage, resulting in a Supreme Court ruling. All of these are serious faults with the Affordable Care Act in its current form.

Even so, attempting to defund the Affordable Care Act in order to starve it is near sighted and misguided.  The Affordable Care Act is a law.  Laws can be changed.  Opponents to the Affordable Care Act have been unwilling or unable to come up with reasonable changes or a reasonable replacement. The current leadership in the White House and Senate will not allow repeal, but may agree to changes. Instead, opponents threaten to shut down the entire Government like a petulant child threatening to take their ball and go home. Ignoring the fact Congress has not passed a budget in 4 years, one of its main purposes, the current Continuing Resolution is not directly related to the Affordable Care Act.  Further, neither is the upcoming battle over the debt ceiling.  Though not as easily measured as within appropriations in the federal budget, complete repeal of the Affordable Care Act would return society to imbalance and insidious hidden taxes tantamount to the cost of the Act itself.

*Matthew R. Jewell -  Currently a Contracts Manager for a large organization; former financial planner and holder of Series 6 & 63 Securities, Life and Health Insurance Licenses; Bachelor's Degrees in Mathematics and Economics from the University of Detroit Mercy and Master's of Business Administration from Wayne State University

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