Another unintended consequence of Obamacare

Federal subsidies for Obamacare insurance policies are mandated spending. That means that anyone who applies for the subsidy - anyone - and if they qualify, will receive it. But what happens if dozens of cities, towns, and some states, push their retired workers from seriously underfunded health insurance plans on to the subsidized federal plan? You get a massive explosion in costs to the American taxpayer. New York Times: Unfunded retiree health care costs loom larger than ever for localities across the country, and the health law's guarantee of federal subsidies to help people with modest incomes afford coverage has made the new insurance markets tantalizing for local governments. A study issued this year by the Pew Charitable Trusts found 61 of the nation's major cities wrestling with $126 billion in retiree health costs, all but 6 percent of that unfunded. "The Affordable Care Act does change the possibilities here dramatically," said Neil Bomberg, a program director...(Read Full Post)