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Monday, December 05, 2016

Paul Krugman: The Art of the Scam

Republicans have promised to repeal Obamacare, but they haven't told us what their replacement would look like. Why not?:

The Art of the Scam, by Paul Krugman, NY Times: ...While many Americans say they disapprove of Obamacare, large majorities approve of the things the Affordable Care Act does, notably ensuring that people with pre-existing medical conditions can still buy insurance. And there’s no way to achieve these things without either a major expansion of government health programs — hardly a Republican priority — or something very much like the law Democrats passed.
Worse yet, from the Republican point of view, Obamacare has worked. .. And Americans newly insured thanks to Obamacare are highly satisfied with their coverage.
So what can the G.O.P. offer as an alternative? We know what Republicans want: a free-for-all in which insurance companies can discriminate as they like, with minimal regulation and drastic cuts in government aid. Going there would, however, cause millions of Americans — many of them people who voted for Trump, believing that their recent gains were safe — to lose coverage. The political blowback would be terrible.
Yet failing to repeal Obamacare would also bring heavy political costs. So the emerging Republican health care strategy, according to news reports, is “repeal and delay” — vote to kill Obamacare, but with the effective date pushed back until after the 2018 midterm elections. By then, G.O.P. leaders promise, they’ll have come up with the replacement they haven’t been able to devise over the past seven years.
There will, of course, be no replacement. And there’s likely to be chaos in health care markets well before Obamacare’s official expiration date, as insurance companies exit markets they know will soon collapse. But the political thinking seems to be that they can find a way to blame Democrats for the debacle.
It’s all very Trumpian, if you think about it. An honest memoir of the president-elect’s business career would be titled “The art of the scam.” After all, his hallmark has been turning a profit on failed business projects, because he finds a way to leave other people holding the bag.
In this case, the effort to replace Obamacare will clearly fail miserably in terms of serving the American people... But it could nonetheless be a political success if the public can be convinced to blame the wrong people.
You might think that this would be impossible, given the obviousness of the ploy. But given what we’ve seen so far, you have to take seriously the possibility that they’ll get away with it.

    Posted by on Monday, December 5, 2016 at 10:19 AM in Economics, Health Care, Politics | Permalink  Comments (39)


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