Obamacare Stumbles Out Of The Gate

Although nothing about the law is working as advertised, open enrollment for Obamacare will kickoff tomorrow.  Starting October 1, Americans will be able to sign up for private health coverage through exchanges, the majority operated all or in part by federal government bureaucrats.

The health insurance plans sold through the exchanges will take effect January 1, 2014.  Americans who fail to obtain health care insurance next year will be forced to pay a tax (penalty) to the Internal Revenue Service, those lovable, cuddly folks who routinely bully taxpayers.  

Experts expect major problems as the roll out begins.  Software glitches have already been identified, insurance pricing quirks threaten to spook consumers, the government website designed to help Americans navigate the plans is replete with errors, according to health care industry leaders.

In recognition of the impending train wreck, the Obama Administration months ago delayed the employer mandate, which required businesses to provide workers with health insurance this year. The requirement was shoved to 2015, after the 2014 mid-term elections.

In another concession, the Obama Administration decided on its own to reduce the tax for those who opt to remain uninsured.  They have to cough up $95 per adult in the household, plus $47.50 per child. That is a far cry from the $2,000 penalty the administration originally included in the law.    

Despite these stumbles, President Obama continues to flog his healthcare reform, holding campaign-style, carefully staged events with hand-picked crowds. However, the president is hedging his bet, admitting there may be some hitches in the introduction.

Obama and his Democrat disciples have reason to be wary.  If Americans encounter delays, errors and sticker-shock, it will hand Republicans a red-hot issue to hammer the party of donkeys during the upcoming elections for the House of Representatives and the Senate.

It is not inconceivable that a poorly executed start could spell doom for Obamacare.  The roll out comes 11 days after the House of Representatives voted along party lines to de-fund Obamacare.  As expected, the Senate reversed the decision, but the final outcome seems far from settled.

Against this backdrop, Americans are struggling to make sense of the new law.  Polls show many do not have the foggiest notion about the enrollment process, coverage or costs.  A Wall Street Journal/NBC News poll found nearly 70 percent of the uninsured don't understand the new law.

More than 40 percent of the uninsured do not even realize they have to buy insurance, according to a recent USA Today/Pew Research poll.  This people are supposed to be the beneficiaries of the law which extends health coverage to every American. 

Worse for Democrats, their reliable dupes in the unions have recently broken ranks.  The powerful Teamsters, AFL-CIO, United Food and Commercial Workers (UFCW) and others have demanded Democrats make changes in the law that negatively impact unions.

Already unpopular with a majority (54%) of Americans, a false start for Obamacare would impact the implementation of the remainder of the law.  Enough pressure could force Democrats to gut major portions of the reform to save face with their uniformed, lemming-like base.

The first major hurdle for Obamacare is to enroll seven million Americans by March 31.  For the system to work, nearly half of those enrollees (2.7 million) need to be healthy young adults between the ages of 18 and 35 to make it feasible for private insurers to assume the additional risks.

If the governments fails to reach that goal, the nonpartisan Congressional Budget Office warns that insurance costs could spike. There is no gloomier scenario for President Obama, who repeatedly has assured Americans their insurance rates would fall with his health law.

Meanwhile, there has been no delay in unfurling new taxes. The majority of the taxes won't take affect until next year, including a hefty new levy on the purchase of health insurance, aimed at raising $8 billion in 2014 and mushrooming to $14.3 billion in 2018.

The more Americans experience Obamacare, the more likely the uproar will grow.  As word-of-mouth spreads, many of the uninsured may simply choose to pay the tax (penalty) rather than endure the aggravation.  That may lead well intentioned Americans to wonder why the law was enacted.

The president and Democrats have bet the farm on Obamacare.  They may find out they are left with the barnyard stench of a failed program that will cling to them for not just one election, but for decades.