This Week's Obamacare Lies

“Misinformation is the enemy of Obamacare.” So said HHS Secretary Sebelius. That’s funny. I thought misinformation was part of the plan. In fact, the more I read about it now that the propaganda phase has commenced, the more I’m sure that misinformation is the plan.

Almost every day lately, there has been a new article about Obamacare in which some Obamacare proponent tries to confuse and mislead the public so the public can’t see what this jerk-off plan is going to cost them. There are several tactics being used in this regard and they are all fraudulent:

● You Can’t Compare: Now that the rates are coming out, people have noticed that these rates are much higher than what they have been paying. The response to this has been to tell people that no matter how bad the rates may appear compared to what you pay now, you really can’t compare the rates under Obamacare to the rates you currently pay because “you’ll be receiving so much more coverage.” Hurray! Isn’t that wonderful?

No. To the contrary, forcing someone to buy more than they want and then bragging about how much more they got is obnoxious bullsh*t. It’s like arguing that yes, you were raped, but we bought you dinner afterwards with your own money! Isn’t that great?!

The truth is that it is perfectly valid to compare what you are being forced to pay against what you were paying the prior year because you didn’t ask for the additional coverage being forced upon you. The claim that we really can’t compare because of this different levels of coverage is pure propaganda.

● It Doesn’t Really Cost That: With people suffering from sticker shock, another tactic is to tell people that the rates aren’t what you’ll really being paying because you’ll get a subsidy! Wee! This claim typically goes something like this: “While the rates may appear higher than some people are paying now, most will get significant subsidies to help them pay for it. For example a typical subsidy is $2,672.”

This is bunk. To back up the claim that most will get a subsidy, they point to a Kaiser study which concluded that 48% of people who currently buy their own insurance will be eligible for tax credits that would offset these premiums. 48% is not “most.” Moreover, this study only talks about people who buy their own insurance. That’s only 16% of the population. So they are basically saying that 8% of the public is “most.” Further, this study was just based on income and it ignores a key factor: if you are offered insurance through work, then you aren’t eligible for a subsidy. So forget it McDonald’s worker if you think Obamacare is going to give you a penny to cover your costs.

Additionally, the subsidy numbers are bait and switch. Pay careful attention: remember that the promise is that 48% of the individuals who currently buy their own insurance will get the subsidy. But the subsidy amount they keep citing is for an average family of four on the sliver plan. That’s apples and oranges. So how much is the subsidy for individuals? They don’t tell you. They never tell you. And the reason is that it’s really, really low. So essentially, these articles are saying this: “Here are the costs, but don’t worry because some people will get a large appearing subsidy, but that won’t be you and we won’t tell you what you’ll get.” Moreover, the subsidies they are talking about are for the silver plan, which is a lot more expensive than the basic plan, yet the costs they cite to are always the cheapest (bronze) plan.

● Low Ball The Estimate: Always citing the cheapest plan is another tactic they use. And not only that, but the cheapest of the cheapest, whether or not it is widely available. Colorado just came out with their estimates and the numbers ranged from $177 a month to $774 per month for individuals (over $1,000 for individuals on group plans). Immediately, Obamacare propagandists began using the $177 figure. Only, no one is going to get that. The rate varies according to where you live and the $177 rate is in Greeley (pop 92,000). In rural Grand Junction, you will be paying a minimum of $237.

What you pay will depend on who your provider is. And for most people, you are looking at $250-$400 a month. That's a far cry from $177. And when you realize that you also will be responsible for more than you'll ever incur as a deductible and co-pay, this becomes a rotten deal.

Interestingly, the fine for not playing along with Obama is 1% of your income. If you somehow got the magic rate of $177, then you would pay $2,124 for the year. Doing a little math, that means that your breakeven point, where it makes economic sense to buy insurance rather than pay the fine is if your income exceeds $212,400.

● IchtsNa on the EductibleDa: Speaking of the deductibles... last week, Obama delayed yet another part of his law. This is the part that caps the out-of-pocket costs the policy holder must pay at $6,350 for individuals and $12,700 for families. Without that provision, many people will face a “double cap,” under which the insurance company imposes one cap for doctor and hospital services and another for drugs. In effect, the above numbers could well be doubled.

Putting all of this together, they are lying to you about being incapable of comparing plans across years, they are low-balling the estimates, they are inflating the subsidies and pretending that everyone will get them, when they won’t, and they won’t tell you how to calculate them. They aren’t telling you that the deductibles are so high that you’ll pretty much pay anything you are likely to incur unless you end up in the hospital for an extended stay... and they aren’t telling you that if that happens, you can get massive discounts and have charities pay for large chunks of it in any event. Essentially, they aren’t tell you that you are a fool if you buy this.

So why do this? Won’t people find out the truth when they apply? Yes, but the goal of the bait and switch is to get you into the store so the salesman can pressure you to make a bad decision. At that point, they have different kinds of misinformation, false logic and pressure they can use to trick you into parting with your money:

“You know, you’re getting a better deal than other people...”
“You know, it wouldn’t cost much more to step up to a higher tier plan...”
“You know, if you leave that employer, you could get subsidies...”
“You know it’s a crime not to have insurance...”
“Why pay a fine and get nothing when you can pay just a little bit more and get next to nothing insurance...?”

That’s why they want you to know nothing at this point. Misinformation and confusion is part of the plan.