The is a scene in the movie City Slickers in which one man on horseback is trying to explain to his friend how to program a VCR. A friend joins the discussion and says, “He doesn’t get it. He’s never going to get it!”
I may have mentioned that I have degrees in math and economics and an MBA in finance. The good news is that you do not need any of those degrees to understand the numbers behind the failure of O-Care. However, an advanced understanding of prestidigitation or legerdemain–I had to look that one up–would be helpful.
I was watching the Clinton News Network (CNN) anchor as he tried to explain to his audience, “Pay no attention to the announcement that the average healthcare premiums in 2017 are estimated to increase according to the following formula:
Increased monthly premium amount per individual = your (weight x height)/IQ x (the number of letters in the name of your state + plus the number of the cable channel for CNN). If you don’t want to do the math, suffice it to say that it is a BIG number.”
The anchor went on to say, and this is the really funny part, “This will not impact the average family because almost eighty percent of those rate increases will be subsidized.” He then sat down with two of his colleagues, Jane and Dick, who were seated at a table with the Monopoly game board opened before them. “It will work like this,” he said. “Suppose that Jane owns the Baltic Avenue property, and she has one house on that property. If I land on Baltic Avenue, I have to pay Jane rent of $16. However, if instead of a house, Jane had a hotel on Baltic Avenue, and I landed there, I would owe her rent of $450.”
So in simple terms, you are playing ObamaCare Monolpoly. Let’s assume that Obama has hotels on all of his properties, If you have ObamaCare you are going to land on one of his properties every month. So you ask, “What about the subsidies?” It works like this. You land on Jane’s property, the one with the hotel, and Jane shouts, “Rent! You owe me $450.”
You pay her the $450, and you say, “But now I don’t have enough money to buy a Stronger Together t-shirt.”
And here is what Jane does when the third Monopoly player, Dick, had his back turned. Jane stole $400 of Dick’s money and gave it to you. So the way the math sorts itself out is that instead of paying $450 of rent, you actually only pay $50, and Dick pays the other $400 that you owe. Jane is happy. You are happy. And Dick has been taken to the cleaners.
And that, boys and girls, is how ObamaCare claims to be solvent.
Let’s address one other topic before class ends today. Let’s say that the US collects $1,000,000 of taxes this year to pay for its spending. (I used a really small number because the actual figure makes my head hurt.) However, the US actually spends $1,300,000; $300,000 more than it collects–deficit spending. (And you thought I did not learn anything in my Econ classes.). So, if the US says it is going to spend another $200,000 to subsidize ObamaCare, where does it get that money? It gets it in one of two ways. Either it taxes all of us more to make up for the additional $200,000 (including the person who thinks they just received an ObamaCare subsidy), or it borrows the money.
So we, you and me, either fund the subsidy–like Dick did for Jane, or the government does a little accounting, and adds the $200,000 to the deficit by spending money it doesn’t have. And that, boys and girls, will make the $19,000,000,000,000 US debt even greater.
If I was playing Monopoly against Dick and Jane, and I saw what Jane did to Dick, I would tell Dick, and then I would make Jane take a time-out.
So when the television anchor tells you that the increased rates for ObamaCare will be affordable because of the subsidy, you should yell, “Not so fast, Skippy!” And then you should make the ObamaCare acolytes take a long time out.
Make healthcare great again.