March 24, 2012

Walter Dellinger — listing 5 Obamacare "myths" — begins with "The 'individual mandate' forces everyone to buy health insurance."

Dellinger, a former acting Solicitor General, has filed a brief on behalf of the Senate and House Democratic leadership in the case that will be argued before the Supreme Court next week.

Let's look carefully at how he purports to debunk this "myth":
The law states that, beginning in 2014, individuals must ensure that they and their dependents are covered by health insurance. Taxpayers who do not meet this requirement will have to pay a penalty that the law calls a “shared responsibility payment.” It begins at $95 for the first year and never exceeds 2 1/2 percent of anyone’s annual taxable income.

A large majority of Americans, of course, have health insurance through their employers, Medicare or Medicaid and are already in compliance with this requirement. Given the relatively modest payment required of those who choose not to maintain insurance, no one is being forced to buy a product they don’t want.

The challengers argue that the mandate is a binding requirement that makes anyone who goes without insurance a lawbreaker. The government has determined, however, that those who pay the penalty, like those who are exempt from the penalty, are not lawbreakers. As a practical matter, the so-called mandate is just a relatively modest financial incentive to have health insurance.
First, the "myth" refers to whether people are forced to buy insurance, not whether people are "made" into "lawbreakers." It's odd that he's introducing this "lawbreaker" concept. Second, what exactly has "the government... determined"? Dellinger is making it sound as though getting labeled a "lawbreaker" is some problem that the government is saving us from, but I think he only means that the government has given people an out — that people who don't buy are not breaking the law as long as they pay the "penalty." But the term "penalty" implies that you've done something wrong.

Are people who care about being law-abiding supposed to feel free not to buy insurance and simply pay the penalty? Presumably, Dellinger is saying yes, as if people who feel the rules apply to them are just being silly. For example, do you feel "forced" to follow the speed limit? Would Dellinger say you're not forced, because you have the option of paying speeding tickets? I don't think he would, and I'm sure he wouldn't assert that you're not even breaking the law when you speed as long as you pay your speeding tickets!

But perhaps Dellinger would say that what's different about the Obamacare penalty is that it's such a small amount. By contrast, speeding tickets are much more painful than the benefit of speeding, and after a few of them, you lose your license entirely. The Obamacare penalty is an attractive option. It's a way of life. It's pretty much just a little tax to swallow. The option of actually buying insurance will be forgone. It would make more sense to say you're forced to pay a new tax than you're forced to buy insurance. And what a tiny little tax! "It begins at $95 for the first year and never exceeds 2 1/2 percent of anyone’s annual taxable income."

So Obamacare doesn't work to get the uninsured insured, it just gives the federal government a new source of revenue. Meanwhile, these uninsured folks can buy insurance at whatever point they want, right? Whenever they acquire a condition that makes them want to have insurance, they can take advantage of private insurance companies that never got the benefit of the "penalty" these people were paying to the federal government all these years. So this scheme will destroy private insurance companies and is really a way to leverage in, by steps, a completely government-controlled health-care system.  Or have I arrived at another "myth" that Dellinger can rescue me from?

Nope. The closest thing on his list is #4: "The law is socialist." But here, Dellinger says it's not "the New Deal approach of having a monolithic government agency be the single provider of a good or service." (Whoa! Did he just accidentally call the New Deal "socialist"?)
Instead, the law adopts a new approach, one conservatives have long supported, of using providers in the private market to deal with social and economic problems.
Initially, yes, but it's not going to work, and many people suspect we're simply entering Phase 1, which seems more acceptable, but it's built to fail — that's the plan — and when it does, at Phase 2, the American people will accept the "socialist" solution, which they would not have accepted at the outset, because there will be no way to restore the private insurance business destroyed in Phase 1. Now, I have heard this conspiracy theory stated many times — e.g., by Rush Limbaugh — and I am certain Dellinger knows it. And yet it does not appear on his lists of myths. The inference is clear:

It's not a myth!

203 comments:

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Bender said...
This comment has been removed by the author.
Bender said...

(damn formatting problems)

March 26 argument --

JUSTICE KAGAN: The nature of the
representation you made, that the only consequence is the penalty, suppose a person does not purchase insurance, a person who is obligated to do so under the statute doesn't do it, pays the penalty instead, and that person finds herself in a position where she is asked the question, have you ever violated any federal law, would that person have violated a federal law?
GENERAL VERRILLI: No. Our position is that person should give the answer "no."
JUSTICE KAGAN: And that's because --
GENERAL VERRILLI: That if they don't pay the tax, they violated a federal law.
JUSTICE KAGAN: But as long as they pay the penalty --
GENERAL VERRILLI: If they pay the tax, then they are in compliance with the law.
JUSTICE BREYER: Why do you keep saying tax?
GENERAL VERRILLI: If they pay the tax penalty, they're in compliance with the law.
JUSTICE BREYER: Thank you.
GENERAL VERRILLI: Thank you, Justice Breyer.
JUSTICE BREYER: The penalty.
GENERAL VERRILLI: Right. That's right.

Unknown said...

paying for their own catastrophic coverage with huge deductible, it makes sense in 2014 to let the policy lapse and pay the fine or 2.5% of taxable income. matawan income tax services

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