Obamacare: Exceptions Leading to Failure

December 26, 2013

By: Kelly Diamond, Publisher

Obamacare was supposed to be the crown jewel of the Obama administration.  But as time has passed and the law incrementally unfolds, it is becoming clear that this precious stone is really just worthless gravel.

The only thing propping up the ACA right now are a bunch of executive orders and exceptions!

ACA Exceptions ExemptionsThere’s an adage used by some libertarians which goes: “Statism: Ideas so awesome, they have to be mandatory”.  As it turns out, the ideas that ooze out of the rotting gash known as the U.S. Federal Government aren’t quite as self-selling as the wheel or electricity.  That’s why government either makes participation mandatory (or lack of participation criminal) or assumes a monopoly over certain services so that only certain people can get an alternative.

The ACA (i.e. Affordable Care Act) is obviously no exception… except for all its recent exceptions!  First we needed to pass the law before reading it so that we could find out what was in it.  Then certain corporations were exempt from having to participate.  Then unions were exempt.  Then we got an extension because the website was a failure. 

The deadline for enrollment was Monday, December 23rd, 2013.  Four days prior to this crucial date, millions more received their very own exemption: a hardship exemption to be specific.  Originally, this exception was reserved for people who were homeless, bankrupt, or victims of domestic abuse.  Now added to the roster of hardship exemptions are those who lost their once affordable plan due to Obamacare itself.  So victims of Obamacare are now eligible for a one year stay on any penalties for non-enrollment. 

As the Wall Street Journal puts it: “…HHS rushed out a bulletin noting that exemptions are available to those who “experienced financial or domestic circumstances, including an unexpected natural or human-caused event, such that he or she had a significant, unexpected increase in essential expenses that prevented him or her from obtaining coverage under a qualified health plan.” A tornado destroys the neighborhood or ObamaCare blows up the individual insurance market, what’s the difference?”

If people who are being kicked off their previous plans are finding the exchange’s alternatives to be such a hardship that they qualify for an exemption, it’s pretty difficult to continue denying rate-shock. 

There’s an “under 30” catastrophic plan that opened up.  Proponents of Obamacare begrudgingly allowed it, but because it is subject to less mandates it is 20% cheaper than other exchange policies (albeit more expensive than its pre-ACA counterpart on the open market) and therefore ineligible for subsidies.  It’s also cheaper because the assumption is people under 30 are a lower risk than those over 30.

The nature of insurance, by definition, is that it is a hedge: a hedge that you WON’T get sick.  Well, imagine everyone’s surprise when this category was opened up to 55 year olds!  The “math” behind Obamacare (which in itself requires government subsidized benefit-of-the-doubt) relies upon a certain population purchasing various tiers of insurance.  So when the anticipated number of people aren’t enrolling in each tier, the numbers no longer work.  55 year olds aren’t supposed to be buying low-risk policies at cheaper rates… but they are.

Part of what made Obamacare “work” (if in fact it was ever going to work as it was passed) was the individual mandate.  Well, clearly, those lines have been obscured.  Time will tell how that will affect the economics of Obamacare, but one thing is for sure: the whimsical alterations to Obamacare will affect the premiums in 2015.  Add to this recent exemption the following: “Earlier this month he ordered insurers to backdate policies to compensate for the federal exchange meltdown, and before that HHS declared that it would not enforce for a year the mandates responsible for policy cancellations. Mr. Obama’s team has also by fiat abandoned the small-business exchanges, delayed the employer mandate and scaled back income verification.”

Obamacare is collapsing into its own untenable footprint.  More people are without insurance than with it.  As this law unrolls, more exemptions and exceptions are being issued by executive order.  That alone is constitutionally questionable since Obamacare is THE LAW.  Can the executive really disagree with the law and order that people not follow it?  Or turn a blind eye to those who don’t follow it?  Or decriminalize the lack of adherence to it?

It’s a sad testament to American society that President Obama can say that the crux of the law hasn’t been disrupted or that the law is working, and that there are people who believe this.  The law at this point is utterly unrecognizable when juxtaposed with the original act that was passed/deemed into law. 

It’s an even sadder reflection of our system and how broken it must be that Representatives and Senators don’t debate the finer point of bills prior to passing them, but instead leave the citizenry to be the unsuspecting guinea pigs for their political experiments.  Clearly they knew enough about the bill to exempt themselves. 

The debate surrounding Obamacare is no longer about whether people should have access to affordable healthcare or health insurance.  That ship has clearly sailed from the Obamacare dock.  The debate now is about whether Obamacare is any good?  The Congressional Budget Office (CBO) at one point had some promising analysis (albeit making some best-case scenario assumptions).  What would the CBO say now?  Is this still a debt neutral policy?  Is this really going to bring down the net cost of health insurance? 

12 thoughts on “Obamacare: Exceptions Leading to Failure”

  1. REAL healthcare will start when citizens start hanging out in the fruits and veggie rather then the chips and cookies section of the grocery store. When fast food is a once in a while choice rather than every day. When kids are taught what is healthy to eat and what is not (ex white flour, gluten enhanced foods, sugar, etc.) and then served healthy food during their impressionable years as their only alternative. When people reject GMO foods. If these things would happen, demand for medical services will decrease and so will prices. You’ll find that many European countries actually practice this and are often critical and amazed at the ignorance, and obesity, of the average American. Obamacare is not about health care, it’s about a corrupt government making money (taxing medical practices) off an ignorant and gullible society who think healthcare is something you get at a doctors office. Most medical practices are about treating symptoms and not the cause. Yes we need hospitals, but we need Americans getting smarter about taking care of themselves more than anything. If medical care practices were about cause, you would see more holistic medicine and education rather than the pharmaceutical-based, symptom treating industry we have today.

    1. Doctors are in the “getting sick” business, not in the getting and STAYING well business. I think it’s a natural corruption that occurs when you have tort laws that have turned the medical trade into the art of ass-covering AND you have pharmaceutical companies raiding and lining the pockets of every policy maker and are given the mic of the media to spread their slanted fear tactics.

  2. After reading. Your last diatribe on Obama care I realize that you are totally out of touch with how obMa care will be funded not to mention the fact you think the cost of care will go down. This makes me think the rest of you advice is pure bullshit so unsubscribe me to this drivel

    1. I never said the cost of CARE will go down. I don’t believe that at all… where are you getting this. Look at the title for crying out loud, I think the damn thing is destined for failure. There’s no indication that costs for anyone are going down… even those who are subsidized are having to drive for hours to get to a care provider in network. Perhaps you should point out what I wrote that you interpreted as being “pro-Obamacare”…

  3. Pingback: The Worst Tax of 2014

  4. Jack Worthington

    The collapse of the economy is nothing to fear, just be prepared, and it will bring with it the opportunity to rid ourselves of the criminal politicians that have perpetuated this dishonest, commie/socialist, crooked operation. The French cleaned house in the 1790’s and no reason we cannot do the same. Hope the military and police step aside when the revolution arrives as these scoundrel politicians are not worthy of the sacrifice of one drop of blood.

  5. It seems that Obamacare is turning out into a disaster. I won’t comment on it because in Canada (and in the province of Quebec where I’m living) we have our own mess. The conditions are different, however. The only question I’d like to ask is, America being the country where health care is the most expensive, is it possible to imagine a health care system that all Americans could have access to without suffering monetary hardship ?

    1. What contributes to the costs is the question right? Well, here’s an interesting example: child birth in a hospital (uncomplicated, no anesthesia) costs approximately $15,000; child birth at a birthing center with a midwife costs approximately $7,000; home birth with a dula or midwife costs under $5,000. SAME birth… so why the $10,000 disparity in costs? Tort, unions and regulations. Healthcare didn’t always cost this much… Health insurance is totally abused (elective C-Sections, urgent care visits for the sniffles, etc.) and we are no longer allowed to offer lower premiums to people who are healthy… they offset the costs for the unhealthy.

      Treat health insurance like car insurance: lower premiums for healthier individuals… and with tailored products that cover what the individuals actually want coverage for!

  6. Pingback: GWP on ObamaCare | The Detonator

  7. Jack Worthington

    Either obumma is impeached, convicted and removed from office or the politician who refuse to remove him must be terminated.

  8. Pingback: Obamacare: Exceptions Leading to Failure | Alternative Risk Investment News Trends on Gold, Money, Currency Markets and Financial Freedom

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top



Privacy Policy: We hate SPAM and promise to keep your email address safe.


Enter your name and email to get immediate access to my 7-part video series where I explain all the benefits of having your own Global IRA… and this information is ABSOLUTELY FREE!