The Graham-Cassidy Scam
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2017-09-25 07:00 by Karl Denninger
in Health Reform , 272 references Ignore this thread
The Graham-Cassidy Scam
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It appears that Graham-Cassidy, the latest "repeal and replace" load of nonsense out of the Republican Party, is doomed.

The option to pass such "one party only" supported bills expires on September 30th in the Senate.  That's when the reconciliation option runs out, at which point standard rules in the Senate apply -- if there is a filibuster you need 60 votes to proceed, and obviously you won't get them without at least some people crossing the aisle.

Graham-Cassidy, in summary, would take Medicaid and turn it into a block grant -- in other words, a pile of cash to the states to allocate for health care however they wish.  It does a handful of other things as well, including getting rid of the individual mandate, but the 900lb gorilla in the china shop is the block grant change.

This will do several bad things, and leaves open one potential good thing, which is why the bill is doomed.

The "bad things" include institutionalizing ridiculous health care spending on Medicaid.  We currently blow crazy amounts of money on that program, and on health care generally. Turning it into a block grant simply moves the problem.

But it is in fact that moving of the problem that really scares people.

You see with block grants the money is the States' to do with pretty-much as they wish.  If they can provide a much better program for indigent people for less money then they get to pocket the rest of the cash, and it's not a small amount of cash either!

This, in the end, is why it will not be passed -- it would take just one state to decide to start enforcing anti-trust law or conditioning business licenses on posted prices and non-discriminatory billing and the entire house of cards that comprises the medical scam would come crashing down instantly.

Right now the states have little or no fiscal reason to do so when it comes to these two programs.  They do have a reason to do it when it comes to their pension costs, but they can (and are trying!) to evade that decision by instead screwing the pensioners.

But if you take the billions that a state gets for Medicaid, turn it into a block grant, and the state can keep whatever it doesn't need once it serves all its residents then there suddenly is a very powerful incentive to crash the cost of medical care in that state by 50-80%.

Simply conditioning business licenses and tax registrations at the state level on open, published and non-discriminatory pricing becomes an extremely powerful fiscal tool that would lead to billions of federal dollars that could be spent on whatever a state wanted once its Medicaid recipients are taken care of.

There's a non-zero chance one or more states would do exactly that -- which cannot be allowed to happen, because if it does happen with one state it will spread fast to all of them as the business incentive to locate a company in that state will become overwhelming and any state that does not go along will be economically eviscerated within just a few short years.

And that, my friends, is why this bill is doomed -- and so are you.

Your only defense is to not need "health care" at all and then to reduce your income to a level sufficient to become immune to the fines and Obamacare "forced payments" by using the maximum subsidy to buy whatever "policy" you can get for a near-zero cost.  In doing so you withdraw consent from the health care scam and it's perfectly legal to do so.  If you need actual care then get on a plane, bus, train or in a car and cross a border, accepting that if the option to do doesn't exist due to exigent circumstance you'll take the alternative (which might well be death) instead.  What you actually wind up "buying" (for free, incidentally; this costs me about 50 cents a month to do) is a catastrophic policy in that it has a very high deductible but if you get in a nasty car wreck or have some other immediate and horrible incident you can finance the deductible and it will cover the rest, and since it costs you personally an effective zero dollars it all works out.  The only trick in a non-Medicaid expansion state is that you have to "make" about $15 large to access this; if you are under that then you run "naked" with no insurance at all (since you can't get on Medicaid without under-18 children.)

I'm not making $100 large+ a year when the government demands I turn over 15% of it pre-tax so I can pay some drug addicted and/or ridiculously obese person's health care bill, then pay taxes on the rest on top of it.  That's simply not going to happen since I have to work 5x as hard as I do now but have an effective tax rate of more than 50% all-in, so I wind up with less than twice as much at the end of the day but work five times as hard to achieve it.  By taking this approach not only do I not pay for the worthless "insurance" I also pay a near-zero effective income tax rate as well.

In short if the government won't stop stealing and you don't have the stomach for an actual fight then **** 'em -- stop working to the extent you need to in order to not pay, fix your health through lifestyle and withdraw from their game, giving 'em all a big fat middle finger.

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User Info The Graham-Cassidy Scam in forum [Market-Ticker]
Themortgagedude
Posts: 10327
Incept: 2007-12-17

saint louis
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Who wrote the bill for them? I imagine if you know that you can piece together why this was written to fail. I imagine Graham doesn't want it passed even. McCain volunteered to take the bullet because he doesn't face re-election again. It allowed everyone to take the appropriate side for their next election. We are all being played.

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I think its time we ask ourselves if we still know the freedoms that our founding fathers intended for us. Ronald Reagan 1964
Whitehat
Posts: 130
Incept: 2017-06-27

New York City
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Healthcare employment has become a new form of welfare from what is observed in the NYC market. It is probably the same everywhere else. Very large numbers of females, including single mothers are employed in many of the most bloated positions along with many other positions. Since medical facilities are close to home and offer flexible schedules, this is useful to females with children. Lots of other protected groups also work in healthcare and get good benefits. Once you get the protected groups in the system any attack on its mode of functioning is an attack on them especially in the age of image advertising. Healthcare is being sold as the new diversity support system of the community. Once you add the word community, you can never challenge it. You have a protected class serving another protected class especially in poorer neighborhoods. Unions such as the SEIU will go bonkers over any potential cuts and probably play the racism card. It should be noted that many members of the SEIU which are often minority are excellent, dedicated, hard working people, just do not understand the issue and are led by others with an agenda. Had to say this as personal experience and observation would give any honest person a high respect for their ethic. Sadly, they will get caught up unfairly in other people's agendas.

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There are two ways to be rich: One is by acquiring much, and the other is by desiring little.
Badmoonrising
Posts: 186
Incept: 2009-09-02

State of Disrepair
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Yup, it's a scam all right, but what isn't when it comes to just about everything the gov is involved with.

My story on healthcare, I haven't been to a doctor in 10 years. I eat healthy and exercise daily. Been on my wife's health plan through her employer. I asked to be dropped from the plan years ago, but they won't unless we are divorced. Her plan cost the two of us approx $8500 a year. If she was on the single plan, her work would cover 90% of the cost.

Yeah, we're all getting screwed for sure. Welcome to the machine...
Themortgagedude
Posts: 10327
Incept: 2007-12-17

saint louis
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If I'm Trump I play this one out. I'm convinced this bill was written to fail. That the Republicans don't want to own healthcare but they can't afford to not look like they are trying. If I'm Trump I demand McConnell bring it to the floor for a vote. Make a speech that demands it. Let the stupid **** McConnell count his votes. They'll be 49-51 for it. And then behind the scenes I cut a deal with Joe Manchin to endorse him for his Senate run. Then you're 50-50 and Pence breaks the tie. Watch those little SwampRats scurry for cover at that point. :) You might need another DemoRat so you might want to cut a deal with the ND and Montana Senators as well.

All this is said assuming that Trump wants to own this himself. And I'm not sure that he does.

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I think its time we ask ourselves if we still know the freedoms that our founding fathers intended for us. Ronald Reagan 1964
Twincam
Posts: 46
Incept: 2014-10-06

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I'm paying $82/mo for a $10K deductible with Medishare.

Apparently, the desire to avoid paying for abortions, contraceptives, lifestyle diseases and obesity isn't valid unless backed by religious conviction.

My real healthcare plan: Keto, moderate exercise and crossed fingers.
Tickerguy
Posts: 150044
Incept: 2007-06-26
A True American Patriot!
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Medishare is not really a health insurance plan. It's a horse**** scam wrapped in Christian rhetoric, in that it is contractually obligated to deliver ZERO to you, ever, period.

People supporting that garbage not only are being robbed they're FEEDING THE MONSTER in the medical system. I find such to be double-stupid for that reason.

Abortions are cheap (on a comparative basis) and so are contraceptives. What's NOT cheap is Type II Diabetes, congestive heart failure and similar, and every ****ing church I've seen sponsoring one of these things is full of fat-ass carb-guzzling fools who rack up plenty of said medical expenses.

Finally, 50 cents beats 80-some bucks a month, has a lower deductible AND has a hard contractual guarantee of payment IF something catastrophic goes wrong.

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Winding it down.

Twincam
Posts: 46
Incept: 2014-10-06

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You're right, it's not insurance and they state this fact openly. I don't care for the Christian rhetoric either.

Maybe it is an elaborate scam that never pays out, but I haven't found evidence of this.

While under no contractual obligation to pay, they also have no obligation to keep fatties in the risk pool. Smokers aren't covered at all. They charge fatties higher premiums and claim to drop them if they show no progress in losing weight.

My motivation at the time was avoiding the ACA penalty. In the coming months, my income may look a lot like yours, in which case, I'll probably take your route.
Rotoranger
Posts: 4
Incept: 2013-12-31

Richmond,Virginia
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Found this YouTube video about the Oklahoma Surgical Center ......

Why Health Care Costs So Much | Dr. Keith Smith and Stefan Molyneux

https://www.youtube.com/watch?v=m4Y8vGuB....
Ckaminski
Posts: 4237
Incept: 2011-04-08

Mass-Hole!
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Quote:
it's not insurance


None of it is.

It's a subscription to medicine.

Tickerguy
Posts: 150044
Incept: 2007-06-26
A True American Patriot!
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The Christian scams aren't even that.

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Winding it down.
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