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The Obamacare Recession

The sequester’s $85 billion dollar slowing of federal spending isn’t what’s going to stall the economy this year – that will come from the President’s healthcare reform.

The White House and congressional Democrats have been hard at-work spinning the March jobs slowdown as an effect of sequestration even though the details of the report show no slowdown in government hiring. As sequestration would first impact government jobs, the correlation is non-existent.

The true culprit in the coming recession is not George Bush, Republican filibusters or slightly slower government spending – its Obamacare.

The President’s marquee healthcare reform law is taking its toll on business owners and families as it is directly causing premiums to skyrocket – some by more than double – and the toll on the economy is just beginning.

An exhaustive study by three congressional committees delivers startling news about the dire effects of Obamacare: President Barack Obama’s signature legislation could increase health insurance premiums by over 200 percent and render insurance coverage unaffordable for millions of Americans.

Insurance companies, states and the federal government have been frantically trying to implement the complicated and costly healthcare law.

Insurance companies have spent millions of dollars installing new software, designing integration with state/federal exchanges and changing their processes to deal with the concept of premium subsidies and premium cost-sharing – two major components of Obamacare. That money has to come from somewhere and its coming in the form of skyrocketing premiums.

States that chose to either implement their own exchanges or work in a state-federal partnership to form exchanges are seeing their costs balloon as well. State taxpayers will bear the brunt of those expenses.

The federal government, realizing that the Affordable Care Act (Obamacare) is too complex, is planning to hire Obamacare Insurance Navigators at a cost of $29-$49.00 per hour. When the government hires, the costs come from taxpayers. Increasing costs mean increasing taxes – just as the President has proposed in his budget plan.

The revenue needed to fund the expense is coming out of the pockets of consumers and going to a massively-expanding federal bureaucracy. More taxpayer money is going to fund Department of Health and Human Services regulation, State and Federal exchanges and now more federal employees – expensive ones.

Consumers are getting hit from another side as premiums affect their paychecks and their employers.

As employers are forced to pay increasing premiums, more revenue must be directed away from pay and hours. Many employers are converting full-time positions to part-time or eliminating them altogether to avoid the overwhelming costs associated with healthcare reform.

Skyrocketing premiums mean less money for workers. As employer-provided health insurance usually splits the cost between the employee and employer, the worker will see a shrinking paycheck as premiums increase.

According to a Milliman Consulting Group study on insurance rates, the pain will be substantial for the middle-class:

the poor are likely to pay significantly less than they do now while middle-class families dig deeper into pocketbooks.

President Obama told the American people that this law would bend the healthcare cost curve down. In just its first few years of implementation it has done the opposite.

Even Department of Health and Human Services Secretary Kathleen Sebelius admitted that “there may be a higher cost associated with getting into that market.” When asked about rapidly-increasing premiums.

Some proponents of the healthcare law have made the case that premiums are rising due to increasing healthcare costs. White House deputy press secretary Josh Earnest countered that claim saying that “I would actually point to the results that we’re already seeing from the Affordable Care Act, which is a savings of $2.1 billion.”

So if healthcare costs are not causing insurance premiums to rise – there’s only one culprit left and the drain on the economy will likely push the country back into recession.

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Rich Mitchell

Rich Mitchell is the editor-in-chief of Conservative Daily News and the president of Bald Eagle Media, LLC. His posts may contain opinions that are his own and are not necessarily shared by Bald Eagle Media, CDN, staff or .. much of anyone else. Find him on twitter, facebook and

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  1. The Oconomy is what is going on, not a recession, nor anything else. O as in zero, O as in hole of the donut, O as in Ocrat’s leading the charge.

  2. Your article missed most of the salient points by soft peddling this bill. IRS has it right. It says that for a family of four the cost to that family in after tax dollars will be $20000. Suppose the family income was 60K, that would be taxed first then Obamacare policies bought OR a tax penalty would be asserted by IRS. John Roberts of course calls this a tax.

    Large businesses get no deductions. So if they pay $5K for every employee that money has to come from someplace and that some place will be the cost of goods and the corporation bottom line. For small businesses under fifty it will mean employees have to foot the tax out of their existing incomes. And companies larger than fifty will scale back on employees. This is just a hefty regressive tax against all citizen taxpayers and will create a whole new collection of new tax penalty recipients.

    This bill was supposed to cut the cost of medical insurance instead it quadrupled it.

    It is really onerous. Before Obamacare there were 250 million insured. After Obamacare, I venture the guess the number will be less than 200 million and a large chunk will be from the expansion of medicaid. In Florida only 2% of doctors take Medicaid so most of this traffic will go to Emergency Rooms which will systematically bilk the system.

    The good news for the really sick is that you can wait to get sick then get insurance. This is the area where the insurance companies will go under. You see, I believe that the a huge number of people will just pay the penalty tax which is based on incomes levels, so the insurance companies in bed with the Democratic machine will not get their cash cow of forcing All Americans to buy their product. In fact their numbers will be lower than they anticipated and the higher they raise their prices, the worse their numbers look.

    Obamacare is more than just a terrible idea, it is a fiasco. Worse, major industries have migrated to Asia over the last three years, all manufacturing. There is no point in an American manufacturer staying in the USA. Consider CAT. All major structural steel is made in China. The US doesn’t have a single blast furnace. All we make is rolled steel. So CAT must import Steel to make its products.

    Meanwhile, the Chinese are creating CAT knockoff at a dozen plants. The thing CAT offers in the USA is service so CAT is stuck with its service industry in the face of Obamacare. Meanwhile their manufacturing margins decline. The Unions and Obamacare will put manufacturing out of business in Illinois. Further the company attempted to move some operations to China but management was negligent and lost a money.

    In addition to this virtually all the US semiconductor businesses have moved to Asia with R&D. This is a major loss in technology and brain power. So enjoy the fruits of a democratic party that went berserk with power; you get obamacare and you get the rug ripped out of the US Economy. This will trigger a recession unless Obamacare is repealed now for the good of the country.

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