As the U.S. government shut down continues, many of us fail to understand what the real issues are. Are they even real issues?
I’m reminded of a Human Resources class that was part of my MBA program. The professor said that sometimes union leaders had to call for a strike. If they negotiated without a strike, union members might think they could have gotten more. If they call for a strike, then if they win anything, workers feel that the strike was worth it and the union bosses are great.
I think that is similar to what is going on right now. Both sides are looking for a way to claim victory. One political pundit predicted that Trump will cave and claim victory. More likely is both sides will “cave” and claim victory. I think that is called negotiation.
We have to be realistic. What is really at stake?
According to the Washington Examiner (a moderate right leaning paper),
Obamacare, or as the 2010 Affordable Care Act is known, established state-level marketplaces in which individuals making less than four times the federal poverty level could purchase subsidized insurance via premium tax credits for qualifying enrollees.
But Democrats passed enhanced premium tax credits under former President Joe Biden as part of the American Rescue Plan during the COVID-19 pandemic, capping the cost of health insurance to 8.5% of income for anyone who purchased a plan on the exchange, subsidizing insurance coverage even for those in the top income brackets.
As I understand it, Democrats want to extend the credits. Republicans say the cost is too high. According to the Washington Examiner, the Congressional Budget Office predicts 4 million Americans will not be able to afford insurance without subsidies. The cost has been $34 billion in the first two years.
People who make less than 400% of the poverty level will still get lower premiums. It is those at the higher income brackets that will see big increases. The article gives an example of a couple living in Washington, D.C. making $85,000 per year. Their cost for premiums would increase by $1887 per month. That seems incredible to me. Looks like there should be room to negotiate and lower the total cost while helping those who need it.
How has this happened? I’m revising my book. The new title will be Health Politics Exposed. The subtitle will be How Politicians Increased the Cost of Healthcare in America.
The first step in solving any problem is understanding the problem. I probably won’t be giving any solutions, but I will expose the problems. I plan to post some chapters to allow my subscribers to read and comment before publication. Subscribe now and help me make this book a success.