Category Archive 'Entitlement State'

27 Sep 2013

Henninger: Obamacare’s Collapse Will Discredit the Entitlement State

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Daniel Henninger
argues, in the Wall Street Journal, that we have nothing to worry about: Obamacare is going to collapse of its own weight.

The public’s dislike of ObamaCare isn’t growing with every new poll for reasons of philosophical attachment to notions of liberty and choice. Fear of ObamaCare is growing because a cascade of news suggests that ObamaCare is an impending catastrophe.

Big labor unions and smaller franchise restaurant owners want out. UPS dropped coverage for employed spouses. Corporations such as Walgreens and IBM IBM are transferring employees or retirees into private insurance exchanges. Because of ObamaCare, the Cleveland Clinic has announced early retirements for staff and possible layoffs. The federal government this week made public its estimate of premium costs for the federal health-care exchanges. It is a morass, revealing the law’s underappreciated operational complexity.

But ObamaCare’s Achilles’ heel is technology. The software glitches are going to drive people insane.

Creating really large software for institutions is hard. Creating big software that can communicate across unrelated institutions is unimaginably hard. ObamaCare’s software has to communicate—accurately—across a mind-boggling array of institutions: HHS, the IRS, Medicare, the state-run exchanges, and a whole galaxy of private insurers’ and employers’ software systems.

Recalling Rep. Thomas’s 1999 remark about Medicare setting prices for 3,000 counties, there is already mispricing of ObamaCare’s insurance policies inside the exchanges set up in the states.

The odds of ObamaCare’s eventual self-collapse look stronger every day. After that happens, then what? Try truly universal health insurance? Not bloody likely if the aghast U.S. public has any say.

Enacted with zero Republican votes, ObamaCare is the solely owned creation of the Democrats’ belief in their own limitless powers to fashion goodness out of legislated entitlements. Sometimes social experiments go wrong. In the end, the only one who supported Frankenstein was Dr. Frankenstein.

Read the whole thing.


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