The Gap Between Over-Promise and Sad Reality Continues to Mount for ObamaCare

| HealthCare | Douglas Holtz-Eakin
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  • The Administration announced that the President would bypass the Senate and make a recess appointment of Don Berwick.

o This means that the head of one of the largest agencies in the government – one that disburses over $800 billion each year – equivalent to being among the top  20 economies on the globe – without the Democrats ever calling a hearing.

o It’s nearly unprecedented for an Administration to recess appoint a nominee that has not even come up for a hearing. The obvious conclusion is that the White House does not want to talk about ObamaCare. It is dangerous to health care, economically damaging, and deeply unpopular.

o The White House even buried the announcement in a blog post.

  • The start-up of the first important “reform” – state high risk pools – is riddled with problems.

o The high-risk pools are underfunded – one reason that 20 states opted out of the program.

o Pennsylvania is still looking for an administrator for its risk pool program, even though HHS already approved the state’s risk pool contract.

o Ohio’s governor evidently informed Hill staff that information on HHS’ new federal website regarding the state’s pool is incorrect, and that coverage for initial enrollees will not begin until September 1 (more than two months late for the implementation date of June 21).

o The federal official in charge of the risk pool program said at a press event that it was unlikely funding would run out because “many people won’t be able to afford to participate in the program since premiums will range between about $140 and $900 a month.” Either the program will start to help people and go broke or not help anyone. Great plan.

Bottom Line: Much of the focus has been on ObamaCare’s large fiscal impact starting in 2014. The bad news starts immediately and the Administration should not be allowed to hide it.