Bluegrass Beacon – Obamacare: Public policy malpractice

BluegrassBeaconLogoReviews on cable news and social media of retired Kentucky Gov. Steve Beshear’s response on behalf of the Democratic Party to President Donald Trump’s first – and powerful – speech to a joint gathering of Congress aren’t great.

Speaking while seated in a diner with a small group of attendees who appear largely impassive in a let-us-know-when-we-can-get-back-to-the-pie-and-coffee sort of way, Beshear’s canned and casual approach made it seem more like he was headed to a backyard barbecue than offering a serious response to the commander-in-chief’s weighty address.

“Small and stunty,” panned liberal MSNBC commentator Rachel Maddow.

However, “to be fair to Beshear, going after that Trump speech is like taking the stage after a U2 set with nothing but a ukulele in your hands,” radio talk-show host Buck Sexton tweeted.

If life hands you a ukulele, at least find an effective composition to play.

Nothing is ever as effective as truth – especially in these days of fake news and alternative facts.

Alas, it seems all Beshear can locate is “Obamacare’s Concerto for Ukulele and Liberals in F (for Failure) Minor” as he remains stuck on maintaining that 22 million more Americans, including a half-million Kentuckians, “now have health care that didn’t have it before.”

At least 14.5 million of those Americans – including more than 400,000 Kentuckians – got their coverage through the misnamed Affordable Care Act’s expansion of Medicaid eligibility, which simply means that all previously uninsured citizens on Medicaid now have is a card in their pockets identifying them as government-program beneficiaries.

No assurance of actual care exists.

But that’s just one of the problems with off-key claims by Beshear and his fellow Obamacare supporters. Consider also:

  • Obamacare provides a costly barrier to needed care.

A Families USA study shows that premiums for high-deductible plans purchased through Obamacare’s exchanges are increasing by double-digit amounts and more annually – 116 percent in Arizona last year alone – resulting in one in four of those customers skipping doctor’s appointments and medical tests while struggling to pay the bigger invoices.

How does this add up to better care or lower costs?

  • Labor-force participation is dropping in states using Obamacare to expand Medicaid.

While Beshear spoke of unemployment-rate drops, fiscal experts are more concerned about Obamacare’s impact on discouraging people from even looking for work.

Georgetown University researcher-turned government analyst Tomás Wind reports that “expanding Medicaid is associated with a 1.5 to 3 percentage point drop in labor force participation” in states that chose to join in the expansion.

  • Obamacare perversely drives up costs then punishes individuals who work extra to pay for it.

People who’ve taken extra jobs to cover double-digit increases in premiums for policies obtained through Obamacare’s exchanges risk abruptly losing thousands of financial-aid dollars.

Tort reformer Ted Frank of the Manhattan Institute Center for Legal Policy used the Kaiser Foundation’s Health Insurance Marketplace Calculator to show how a 62-year-old earning $46,000 in a high-cost area suddenly loses the $7,836 tax credit that helps cover his premium if he earns just $22 more.

Hans Bader of the Competitive Enterprise Institute in noting Frank’s example writes that while it makes sense to “gradually phase out” subsidies for those whose incomes rise and who need less government help, Obamacare takes a “far more extreme and indefensible” approach.

“It suddenly takes away thousands of dollars in subsidies when many people earn a few extra dollars – blindsiding many of them in the process,” Bader writes. “… That leaves them much worse off than if they had never earned that extra income, potentially leaving them poorer for taking on a second job to pay the costs of their health insurance.”

It’s so severe that our 62-year-old will have more take-home pay if he earns $46,000 than if he reaches $55,000.

Frank’s conclusion: “This is just public policy malpractice.”

Jim Waters is president of the Bluegrass Institute for Public Policy Solutions, Kentucky’s free-market think tank. Read his weekly Bluegrass Beacon column at www.bipps.org. He can be reached at jwaters@freedomkentucky.com and @bipps on Twitter.

Bluegrass Beacon: Set the table for a school-choice buffet

BluegrassBeaconLogoPresident Donald Trump’s administration is taking some cues from the productive Kentucky Legislature.

After a frenetic first week of the 2017 session of the Kentucky General Assembly during which seven bills were passed, the new Trump administration offered a proportional amount of accomplishment during its first five days in the White House.

Trump took 15 major actions in his first five days, including steps toward ending Obamacare and withdrawing the nation from the Trans-Pacific Partnership – a victory for Kentucky farmers, who grow more than 87,000 acres of tobacco annually.

I called for both actions in this column during the recent election season.

The Obama administration embedded its hatred of the tobacco companies into the 12-nation TPP deal, excluding these firms from protections available to all other industries against foreign governments taking property without compensation or seizing assets in the name of “public health.”

While the deal contained some attractive tax and tariff cuts, it’s unacceptable to single out a specific industry and its legal product based on ideology and the running amok of political correctness.

Still, it’s important for our nation’s security and for Kentucky farmers and manufacturers to maintain a strong, open trading relationship with willing countries.

As Frederic Bastiat, the great 19th century free-market French economist, believed: “If goods don’t cross borders, armies will.”

Democrats who lost the Kentucky House on the same night they turned over the keys to the White House complain about the feverish pace of it all.

Yet most of the legislation debated and passed in Frankfort during the first week in January – right-to-work, repeal of costly prevailing-wage mandates on public construction projects, making part-time politicians’ pensions transparent and pro-life bills – had been debated and passed by the state Senate for years.

School-choice legislation also fits that scenario.

It’s likely this session won’t end before Kentucky becomes the 44th state with a charter-school law and perhaps also the 18th state to turn tax-credit-friendly donations into scholarships allowing children from countless numbers of families access to a private education.

Louisville Rep. Phil Moffett’s charter-school legislation would offer Kentucky’s kids the opportunity to attend schools that will allow them, in many cases, to break the cycle of generations of poverty, illiteracy and failure.

Opponents continue to offer recycled claims about how empowering parents to choose the school that best fits their children’s educational needs somehow is a vast right-wing conspiracy to destroy public education.

But wait a sec’.

Charter schools are public schools.

Along with the reality that policies like Moffett’s bill haven’t caused an implosion of public education in those 43 other states is the expectation hardworking taxpayers have when they fork over their hard-earned dollars – $10.1 billion designated for K-12 schools in the commonwealth’s current biennial budget.

They want their money used for educating children, not propping up failing systems or sustaining jobs programs for adults.

While discussing his bill at a recent education forum in an inner-city church in West Louisville, Moffett told the largely minority crowd: it’s time to take a cue from its neighbor to the North.

Indiana is changing its approach – “to thinking about public education, not public-school systems,” the former GOP gubernatorial candidate said.

The shift has resulted in many more options for Hoosier State parents – from charter schools to vouchers to tax-credit scholarships and even individual tax credits for private-school enrollment and tax deductions for homeschooling families.

The Hoosier State has one of America’s biggest school-choice buffets and fastest-growing economies.

Kentucky will take major steps toward setting its table with the same kind of spread with similar results when it gets back in the kitchen on Feb. 7.

It can’t happen fast enough.

Jim Waters is president of the Bluegrass Institute for Public Policy Solutions, Kentucky’s free-market think tank. Read his weekly Bluegrass Beacon column at www.bipps.org. He can be reached at jwaters@freedomkentucky.com and @bipps on Twitter.