Wyoming Liberty Group
In the Grim Face of Obamacare: Will Wyoming Protect Health Freedom?
Obamacare is now a reality. Wyoming’s families and businesses will now be subjugated into compliance with a massive change to our health care system, the magnitude of which supersedes that of Medicare and Medicaid combined. As Medicaid expands and the public option pushes private insurance out of the way, reimbursements for medical practitioners will fall to Medicaid-Medicare levels across the board. As the smallest health insurance market in the country, we will quickly be gobbled up by government-run health insurance. Like the first in a row of 50 domino bricks, the state of Wyoming will be the first to fall under the federal government’s pressure to socialize health care.
You do not have to read more than sections 222-224 of the Obamacare bill to realize what this means. Reimbursement rates within the public option will follow Medicare, a program that, under the same law, is going to lose $500 billion and see reimbursement rates plunge. The question is not whether Wyoming –once seized by tax-paid health care — will be able to attract new medical practitioners. The question is instead whether or not we will be able to keep any practitioners in our state. Is there any professional out there, in any career, who would keep working if all his clients suddenly started paying him 30 percent less than they do today?
Wyoming had a chance to stand up and defend itself against Obamacare. The state legislature had a chance to put a shield between on the one hand the state’s hard working families, entrepreneurs and medical professionals and on the other hand the power-grabbers in Washington, DC. The state legislature could have passed the Health Freedom Amendment. But it chose not to. Despite the ominous signs that Washington, DC was going to push as far as it ever could to impose Obamacare on the American people, the Wyoming state lawmakers chose to do nothing.
Instead, it is now states like Idaho and Virginia that take the lead in protecting the people against this reckless “health reform”. They have gone all the way to protect their residents with health freedom amendments.
But the Obamacare reform is not only going put our state’s health care system on life support. It is also going to impose a slew of new taxes. One example, reported by Bloomberg News:
Obama’s budget proposes to allow the existing 15 percent tax rate on dividends and capital gains to rise to 20 percent in 2011 for the same high-earners. Layering a 3.8 percent Medicare tax on top of that would mean a new top rate on dividends and capital gains of 23.8 percent. The top tax rates on interest and rental income would rise to as high as about 44 percent.(i)
It is a safe bet to say that Obamacare will still run a deficit, despite all its new taxes. One reason is that every entitlement program since the dawn of government has ended up costing more than initially projected. Another reason is that the cost of medical technology, from high-tech equipment to pharmaceuticals, has risen faster than GDP since at least 1960. Quality costs.
Obamacare will not change that. It will make quality go away, though, once the public option and Medicaid have taken over the health care system. The federally run health insurance program will succumb under the pressure to keep health care costs down. The result will be system-wide rationing and denial of care. That pressure will be far stronger than the pressure from the American people to get health care when they need it. Another news report from Bloomberg indicates that the federal government is rapidly approaching the end of its line of credit:
The bond market is saying that it’s safer to lend to Warren Buffett than Barack Obama. Two-year notes sold by the billionaire’s Berkshire Hathaway Inc. in February yield 3.5 basis points less than Treasuries of similar maturity, according to data compiled by Bloomberg. Procter & Gamble Co., Johnson & Johnson and Lowe’s Cos. debt also traded at lower yields in recent weeks, a situation former Lehman Brothers Holdings Inc. chief fixed-income strategist Jack Malvey calls an “exceedingly rare” event in the history of the bond market. While Treasuries backed by the full faith and credit of the government typically yield less than corporate debt, the relationship has flipped as Moody’s Investors Service predicts the U.S. will spend more on debt service as a percentage of revenue this year than any other top-rated country except the U.K. America will use about 7 percent of taxes for debt payments in 2010 and almost 11 percent in 2013, moving “substantially” closer to losing its AAA rating, Moody’s said last week. (ii)
Other states are doing their best to protect their residents and their right to health care freedom. They may not be able to protect their residents against the new taxes, but at least they can do damage control. The smaller the market for Obamacare, so to speak, the less disastrous its impact will be on the economy.
Will the legislators in Wyoming step up to the plate now, when Obamacare has become the law of the land?