September 3, 2009

Obamacare’s five flaws

Heritage Foundation expert Nina Owcharenko dissects "five major faults with the health care bills" being pushed in the House and Senate.

1. The public "option." Both proposals would create a government-run insurance plan which proponents claim would foster honest competition among private insurers. But how can there be fair competition when one of the players -- Washington -- is both writing the rules and playing the game? What's more, this scheme could lead millions of Americans to lose their private health insurance.

2. Centralized regulation. Both the House and Senate bills would result in sweeping and complex federal regulation of health insurance. This would take oversight away from states and concentrate it in Washington -- and this oversight is best left at the state level.

3. Greater dependency on government. Both bills would expand existing government health care programs and introduce massive new taxpayer-funded subsidies to buy health insurance. This would leave millions of Americans dependent on government for their health care.

4. Employer mandate. The plans would force employers to provide coverage for all employees or face a massive tax. These "play-or-pay" mandates will raise prices, stifle economic growth and particularly hurt low-wage earners.

5. Individual mandate. Both bills require that all Americans purchase health insurance. Those without coverage or whose plans don't meet the new federal standards would face tax penalties. Special interests are sure to "lobby intensively to expand the legally mandated health benefits, medical treatments and procedures, and drugs that all Americans must buy under penalty of law."

Taken together or individually, these flaws would inflict serious damage on an industry that represents one-sixth of our nation's economy. . . . [Full Story]
ARRA News Service

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