Health Care System Overhaul

Now that repeal of Obamacare is within striking distance, Obamacare’s supporters are aghast at over 20 million people potentially losing their overly expensive health insurance.
If Republican politicians cannot overcome this objection, they will never move forward with repealing and replacing Obamacare. U.S. Senator Lamar Alexander, Chairman of the Senate’s Health, Education, Labor, & Pensions (HELP) Committee anticipates it will take several years to transition out of Obamacare to a patient-centered health system. Through the new patient-centered health system, individuals will be allowed to purchase their own private insurance across state lines with any insurance company you may chose without government interference.
Why would Republican politicians balk at fulfilling a promise on which they have campaigned successfully since 2010? The answer lies in the swamp which President-elect Trump promises to drain – Washington, DC. Remember every industry in the health sector acceded to Obamacare in 2010 because it would permanently divert funds from the rest of the economy into the health sector.

WASHINGTON, DC – JANUARY 07: Speaker of the House Paul Ryan (R-WI) signs legislation to repeal the Affordable Care Act, also known as Obamacare, and to cut off federal funding of Planned Parenthood during an enrollment ceremony in the Rayburn Room at the U.S. Capitol January 7, 2016 in Washington, DC. President Barack Obama has promised to veto the bill. (Photo by Chip Somodevilla/Getty Images)
Some of those industries were taxed to fund the new spending. They went to work immediately to repeal those taxes, while retaining the spending. As the newly elected Congress prepares to start work in January, those industries are lobbying hard to maintain this objective. Their goal is not to repeal and replace Obamacare, but to repeal taxes specific to each industry and leave us with deficit-financed Obamacare.
The capital markets expect a unified Republican federal government to go back to the GOP’s traditional big-spending ways: The yield on the 10-year Treasury note has increased from 1.83 percent the day before the election to 2.40 percent today. This is mostly driven by President-elect Trump’s promise to spend on infrastructure and the market interprets this positively for economic growth.
The freed up tax dollars from health-care spending along with the GOP promise to cut social programs like Medicare, Medicaid, social security, food stamps and student loan subsidies will go a long way toward the GOP promise to balance the budget.

The math is also daunting. The most recent House GOP budget plan, for instance, promised to balance the budget over a decade by cutting spending by $6.5 trillion — roughly 13 cents of every dollar spent — over the next 10 years. But their budget plans have kept the Pentagon, veterans programs and interest payments immune from cuts, so they’ve doubled down on cuts to the Medicaid health program for the poor and disabled, along with cuts to domestic programs like education, farm subsidies, housing vouchers and scientific research.

The Capital market is already reacting positively to the new reforms and the diverted spending with continue a business growth pattern already reflected in the treasury bill. The yield on the 10-year Treasury note has increased from 1.83 percent the day before the election to 2.40 percent today since the day of the election. The Market interprets this positively for economic growth.

The question came up, “where does Congress get their health insurance?” Congress is covered under the Federal Employee Health Benefits Program (FEHBP). It has drawn praise both from conservatives and liberals, including President Obama, who held it up as a model for his own health care proposals.

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Health Care System Overhaul