This article was published by The McAlvany Intelligence Advisor on Friday, October 13, 2017:
Those in the freedom fight know how to get rid of unnecessary, unconstitutional programs: starve them and/or let the free market compete against them. Either way, they’re done for. President Trump’s Executive Order issued on Thursday does both.
That’s why his order was so much more than just allowing the free market to operate in providing healthcare coverages. It set a pattern for further rescissions and reductions of other unnecessary and anti-freedom government programs. What President Trump said was music to the ears of those committed to free market principles and who have been fighting for years to see a day like Thursday arrive and hear a president say the following:
This is promoting health care, choice, and competition all across the United States. This is going to be something that millions and millions of people will be signing up for and they’re going to be very happy. This will be great health care.
Only the free market will be able to create “great health care,” not the government or Mr. Trump with his magic pen. What the government can do is get out of the way and let that free market design, craft, and create health insurance coverages that customers want and are willing to pay for, without government subsidies or threats by the IRS if they don’t. And that’s what Trump’s EO will allow.
Specifically, his EO directs agencies in the Executive Branch to allow lower-cost health insurance plans, currently prohibited by ObamaCare, to be offered. This will allow new lower-priced plans to be offered across state lines, increasing competition. His order would allow individuals with medical reimbursement plans (Health Reimbursement Arrangements) at work the freedom to take some of those funds to purchase those less costly individual health insurance policies. The EO would allow individuals to form group associations for the purpose of buying health insurance on a group basis, which generally reduces premiums.
In addition, Trump is going to turn off the government spigot funding health insurance companies selling the high-priced ObamaCare coverages. When those presently covered see further increases in their premiums, they will be looking for an exit out of the state-run exchanges, causing the collapse of ObamaCare altogether.
There will be pushback. There will be lawsuits from various parties interested in retaining the ObamaCare status quo from which they are benefitting, either politically or financially. Politically, Democrats, which nearly to a man are responsible for forcing ObamaCare down the throats of American citizens, are likely to claim discrimination – that with the new lower-cost options coming online, healthy individuals will opt out of ObamaCare mandated plans and purchase cheaper ones. That will cause the risk pool of those remaining and covered by the health insurance companies to rise substantially, which will show up as even higher premiums. This will eventually drive those high-cost plans out of business as the policyholders won’t be able to afford them. They will instead, as the free market is allowed to breathe once again, enjoy other alternatives yet to be offered. Others will claim that the Trump administration “has it in” for those now receiving health insurance at taxpayers’ expense or claim that assistance will be “cut off” without mercy by Trump. This tactic is designed to play on the meme that “once something is offered for free or at a discount, taking it away is unfair,” hoping those currently enjoying coverages at someone else’s expense will pressure Washington to keep those unearned benefits flowing.
Had Hillary won last November’s election, ObamaCare would by now have been permanently been cemented into place. Today, however, ObamaCare is being starved to death while being forced to compete with better coverages at lower costs. It’s a glorious day for freedom.
The Wall Street Journal: In Start to Unwinding the Health Law, Trump to Ease Insurance Rules
The Washington Post: Trump to sign order to eliminate ACA insurance rules, undermine marketplaces
The Washington Post: Trump signs order to eliminate ACA insurance rules, undermine marketplaces