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4/9/14, "House Republicans Push Another Corporate Bailout Disguised as Partial-Repeal of Obamacare," Daniel Horowitz, Madison Project blog
"When observing the actions of political class Republicans it’s
important to remember what makes them tick. It’s not that they are
liberal or moderate; it’s that their ideology is power. When
conservative policies will benefit them politically and assuage their
donors and lobbyists, they will jump on board the constitutional
bandwagon. But as soon as there is a schism between their
puppet-masters on K Street on conservative policy, they are completely
off the reservation. Nowhere is this more evident than with Obamacare.
While other issues such as corporate welfare, amnesty, and Common
Core are blatantly embraced by the corporate interests, Obamacare is
more complicated. On paper, big business opposes many parts of
Obamacare. But that is the point. They oppose the parts of the bill
that directly affect their bottom line (at least with the shortsighted
focus on the near term), but have no problem with the rest of the bill
that distorts the market and raises costs on individuals. Indeed, much
of the insurance industry was in on Obamacare from day one.
Hence, that is why none of us are surprised that GOP leadership has quietly given up on Obamacare. This is not just about strategy, it’s about core beliefs. Look no
further than the Chamber of Commerce’s official position that they
desire to fix Obamacare.
Accordingly, this is why Republicans and even some Democrats have
enthusiastically embraced repeal of the medical device tax. Undoubtedly, it is a pernicious job-killing tax, but it is unanimously
opposed by the business community. Juxtapose that to repeal of the risk
corridors (the insurance company bailout for those who participate in
Obamacare but inevitably incur losses from the mandates), championed by Senator Marco Rubio (R-FL), and you won’t find too many followers.
Today, we will witness the latest example of (GOP) leadership’s tendentious
treatment of big business in the Obamacare debate. The House will
quietly vote on a bill sponsored by Democrat Rep. John Carney (D-DE) and
Republican Rep. Devin Nunes (R-CA) (H.R. 4414),
which would exempt all expatriate health insurance plans from
Obamacare. Expatriate plans are robust high-end forms of insurance for
executives, primarily in big corporations, working overseas and in need
of global access to healthcare. The bill is co-sponsored by a random mix of moderate Republicans and Democrats.
Carney and Nunes sent a letter to their colleagues noting that these
plans are offered by Cigna, Metlife, Aetna, and United Health. This is
not surprising because Cigna provides health insurance to large
companies with many top executives working overseas. Perforce, all of
the special interests groups who oppose full repeal or defunding of
Obamacare have swooped in on this bill. The American Benefits Council and the Chamber of Commerce quickly circled the wagons around this bill, which had not undergone any committee hearings or markups and was randomly passed under suspension.
While there is some debate among conservatives about partial repeal
bills, even those conservatives who support a partial repeal strategy
should only support game-changing bills that both bring relief to the
consumer and help disrupt the viability of the entire law. For example,
in the case of the 1099 tax-reporting provision, it benefited all
businesses and alleviated them from an onerous burden. The 1099
provision required companies to report all vendors from which they
purchased $600 worth of goods or services within a year on their annual
tax report. Moreover, instead of bailing out Democrats from the
political wrath of a deleterious provision, we extracted concessions
from them by limiting the individual subsidies for purchasing insurance.
The expatriate reform, on the other hand, is a parsimonious tweak
(yet full repeal for one special interest) that serves no purpose but
ameliorating the law, making some Democrats look good, and playing into
the insidious and selfish strategy of big business and the insurance
companies. Moreover, Republicans have not attached any other concession
to this bill like they did with the 1099 repeal.
In the case of Cigna, they spent millions promoting Obamacare;
now they are looking for a bailout specifically for their corporate
clients. There’s no reason we should help them out. It’s no surprise
that Rep. Andy Harris (R-MD), a conservative House member and lifelong
physician, allegedly accused leadership of being in the pockets of big insurance companies.
The Wall Street Journal continues
to lambast conservatives for opposing partial-repeal measures, but they
are too shortsighted to see how these bills are geared towards bringing
relief to Obamacare lobbyists, not consumers and taxpayers at large.
Those who think that the intra-party battle of 2014 is merely about
strategy are not paying attention. Establishment Republicans have never
stood for limited constitutional government and free markets except for
when it overlaps with corporate interests. Don’t be fooled by the
ubiquitous public opposition to Obamacare within the party. If
conservatives fail to win this year’s primaries, a GOP majority will not
be committed to repealing Obamacare."
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