ObamaCare costs are rising to out-of-control levels and now even its supporters can’t deny the hardships being placing on hardworking American families.
Chelsea Clinton, daughter of former President Bill Clinton and former Secretary of State Hillary Clinton, came out against the rising costs of ObamaCare. She’s caught on video blasting President Obama’s legacy for its “crushing costs” but chooses the wrong solution: government (specifically presidential action) artificially holding down rates:
"…cap on out of pocket expenses. This was part of my mom's original plan back in '93 and '94, as well as premium costs. We can either do that directly or through tax credits. And, kind of figuring out whether she could do that through executive action, or she would need to do that through tax credits working with Congress. She thinks either of those will help solve the challenge of kind of the crushing costs that still exist for too many people, who even are part of the Affordable Care Act and buying insurance…"
Chelsea is right that the costs of ObamaCare are crushing for those with it. As we’ve reported, Americans in most states face higher healthcare premiums this year under ObamaCare with increases 20 percent or higher in 17 of those states. Forty-one states saw average deductibles for ObamaCare plans increase and 17 of them experienced double-digit increases.
Even if a consumer gets help paying for her healthcare, that’s just one hurdle with ObamaCare. As Hot Air explains, there’s more to the story:
Yes, and part of that is not just the crushing cost of the insurance, but the crushing costs involved in getting past the huge deductibles in order to access it. When challenged about the former, ObamaCare’s defenders always insist that subsidies reduce the cost, which is actually inaccurate. They might reduce the effective price to the consumer, but the rest of the costs get borne by everyone else through taxation, so premium price hikes matter — a lot. When the subject of deductibles comes up, ObamaCare defenders usually just change the subject a lot rather than deal with the reality that they’ve made health insurance almost useless for most people in the system, but still saddled them with its costs.
If the Affordable Care Act lived up to its name and mission, taxpayers wouldn’t need to be on the hook for subsidizing rising premium costs and helping customers overcome high deductibles.
What’s apparent is that Chelsea Clinton and many progressives think the solution is robbing Peter to pay Paul. Paul only has so much to give and Peter’s needs will never end as the costs he faces continue to rise.
Furthermore, Chelsea misunderstands what happens when government attempts to central plan market forces. The law of unintended consequences kicks in. Trying to control costs by executive fiat will drive prices higher as providers know they have a guaranteed funding source from Washington. Tax credits have to be paid for by someone and that someone is taxpayers. There’s no way to wave a magic wand or pen to make an expensive, failing system better.