Devastating: HHS abandons part of ObamaCare as fiscally unworkable

posted at 6:27 pm on October 14, 2011 by Allahpundit

A total debacle. And the punchline is, everyone saw it coming — including the Democrats who went ahead and voted anyway to bring this Frankenstein to life.

Congrats to the mad scientists responsible for choosing late Friday afternoon to break the news.

Known as CLASS, the Community Living Assistance Services and Supports program was a longstanding priority of the late Massachusetts Democratic Sen. Edward M. Kennedy.

Although sponsored by the government, it was supposed to function as a self-sustaining voluntary insurance plan, open to working adults regardless of age or health. Workers would pay an affordable monthly premium during their careers, and could collect a modest daily cash benefit of at least $50 if they became disabled later in life. The money could go for services at home, or to help with nursing home bills.

But a central design flaw dogged CLASS. Unless large numbers of healthy people willingly sign up during their working years, soaring premiums driven by the needs of disabled beneficiaries would destabilize it, eventually requiring a taxpayer bailout…

“Despite our best analytical efforts, I do not see a viable path forward for CLASS implementation at this time,” Sebelius said in a letter to congressional leaders.

Social Security’s Ponzi scheme is sustainable — not forever, but for now — only because it forces new workers to pay in and keep funding benefits for retirees. CLASS tried to build the same pyramid without using compulsion to create that revenue base on the bottom. The result, soon enough, would have been an upside-down pyramid that inevitably toppled over. Look for the left to try to salvage this disaster on that grounds — that it goes to show the absolutely necessity of a mandate if you want to expand health-care coverage. True enough, I suppose. If you want a robust entitlement state, you had better be prepared for a lot of government coercion.

But wait. We haven’t touched on the real disgrace here yet. Philip Klein:

One reason why the Obama administration has been reluctant to officially shut down the program is that it was one of the main accounting gimmicks they used during the health care debate. Because the CLASS Act was supposed to collect five years of premiums before paying out any benefits, the Democrats have been claim $80 billion in short-term surplus from the program as deficit reduction, ignoring the obvious fact that the money would eventually have to pay for benefits. It’s been called a “budget zombie.”

Here’s the detailed HHS report prepared concluding that the CLASS program couldn’t work. One of the fears raised is that if it were implemented and failed, it would be problematic to shut down.

That’s another key lesson to take away about entitlements: If you want to prevent fiscal hemorrhaging later, your only option is stop the program before it’s up and running and the public’s dependency forms. I’m amazed that Sebelius was responsible enough to pull the plug on this now instead of letting it begin and roll on inexorably towards insolvency.

But never mind that. Look again at that $80 billion figure. How did a program so obviously unsustainable that the White House had no choice but to shut it down produce an $80 billion surplus for ObamaCare accounting purposes? Very simply, actually. The Democrats designed the first five years of CLASS to be a “vesting period” in which enrollees would pay into the program but receive no benefits yet. In other words, for the first five years, the program would have been pure profit for the government — and then, when benefits finally kicked in, the hemorrhaging would begin. The reason they did it that way is the same reason they delayed the start of ObamaCare until 2014: They knew that CBO “scores” new legislation based on its first 10 years of operation, so the more they could game the numbers during those first 10 years, the better the “score” for ObamaCare would look while Democrats were trying to sell it to the public. It was a massive accounting fraud designed to make health-care reform seem much less expensive than it really was. According to Klein, CLASS’s phony “savings” accounted for fully $70 billion of ObamaCare’s supposed $143 billion in deficit reduction. According to WaPo, using a slightly different baseline, CLASS accounted for $86 billion in savings. All of that is up in smoke now. Or rather, it was always smoke. Only now is the White House finally acknowledging it.

But even that’s not the real disgrace here. This is the real disgrace, from Andrew Stiles’s post at the Corner written on September 15:

Long after Obamacare was passed and signed into, even prominent supports of the bill acknowledged that the CLASS Act was a financial disaster waiting to happen. Senate Budget Committee chairman Kent Conrad (D., N.D) called it “a Ponzi scheme of the first order, the kind of thing Bernie Madoff would be proud of.” Health and Human Services secretary Kathleen Sebelius admitted it was “totally unsustainable” in its current form. But again, that was after Obamacare had been enacted. In fact, under the new law, HHS has until Oct. 1, 2012 to finalize the program’s requirements, to be imposed through regulation. Because the law (no doubt intentionally) left vague many of the plan’s key provisions, there is currently no way to reliably assess the program or estimate its potential cost.

As the [Republican] investigative report reveals, administration officials had been warning about the program’s long-term sustainability in the months before the law was passed, yet ignored, and in some cases marginalized these concerns as the White House pushed ahead with its landmark legislation. E-mails uncovered by the working group show that such concerns were first raised back in May 2009, nearly a year before Obamacare’s passage, by Medicare chief actuary Richard Foster. “At first glance this proposal doesn’t look workable,” he wrote in an e-mail to other HHS officials. “Due to the limited scope of the insurance coverage, the voluntary CLASS plan would probably not attract many participants other than individuals who already meet the criteria to qualify as beneficiaries.” Even so, Foster estimated that the CLASS program would have to enroll about 234 million people, which is greater than the entire U.S. population aged 20 and above, in order to sustain itself.

They knew all along, just like they knew all along that Solyndra was a bad bet. And yet in both cases they went ahead anyway because their agenda was more important to them than taxpayer money. Take five minutes and read all of Stiles’s post, which goes on and on — and on — from there. See for yourself just how transparent this fraud was, and yet no one on the Democratic side was willing to halt it before the bill passed because their fiction about “bending the cost curve” was too precious to ObamaCare salesmanship. Byron York is reporting that the GOP’s not going to let this rest with Sebelius withdrawing the program but instead will move to repeal CLASS entirely. That’s excellent. Force all the Democrats who rubberstamped this fraud last year to eat it in a highly public vote, and then let them explain to independents why they’ve gone from “this law will save America” to “this law can’t possibly work” in the course of 18 months. Can’t wait.

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Force all the Democrats who rubberstamped this fraud last year to eat it in a highly public vote, and then let them explain to independents why they’ve gone from “this law will save America” to “this law can’t possibly work” in the course of 18 months. Can’t wait.

Media and Obama will still spin it as “GOP kills affordable long term care in Obamacare”

lorien1973 on October 14, 2011 at 6:30 PM

Ha ha ha… Thanks for the good laugh just before dinner!

UltimateBob on October 14, 2011 at 6:30 PM

Smart Power

Grunt on October 14, 2011 at 6:31 PM

so, a portion of the crap sandwich is left on the table…? we’re still eating the rest of it ain’t we?

ted c on October 14, 2011 at 6:31 PM

so, a portion of the crap sandwich is left on the table…? we’re still eating the rest of it ain’t we?

ted c on October 14, 2011 at 6:31 PM

6″ crapsand

darwin-t on October 14, 2011 at 6:33 PM

What’d crr6 say after Obamacare was passed?

Count it!

lorien1973 on October 14, 2011 at 6:33 PM

“We have to pass the bill in order to know what’s in it.”-Nanzi Peelousy

Well they passed it. And we are indeed finding out what’s in it.

predator on October 14, 2011 at 6:33 PM

See for yourself just how transparent this fraud was, and yet no one on the Democratic side was willing to halt it

Now there is a sentence than can apply to many things (and people)

Meh on October 14, 2011 at 6:33 PM

Excellent, excellent post, AP.

John the Libertarian on October 14, 2011 at 6:33 PM

Obama’s Political capital all spent, and all he got was this lousy T-Shirt.

portlandon on October 14, 2011 at 6:33 PM

Anything else in that Friday afternoon goodie bag? Dr. K is ripping on King Barry over the troops in Africa.

Knucklehead on October 14, 2011 at 6:35 PM

But a central design flaw dogged CLASS

But a central design flaw dogged … anything liberal.

faraway on October 14, 2011 at 6:37 PM

The repeal of CLASS should include $80 billion in cuts to offset the $80 billion in deficit reduction that will be lost over the next ten years due to the cancellation of the program.

To not do so would increase the deficit. Live by the budget gimmick, die by the budget gimmick.

rw on October 14, 2011 at 6:37 PM

AP is on fire the last couple days.

TexasDan on October 14, 2011 at 6:39 PM

Has crr6 been around lately? Hasn’t she been here to thank President Obama?

NoFanofLibs on October 14, 2011 at 6:39 PM

Barry, the Pied Piper of Chicago played his magic flute, and the Democratic party followed right behind him. The political capital spent on the Liberal (& MItt Romney’s) Pipedream of Socialized Medicine will have lead to the destruction of their Party.

portlandon on October 14, 2011 at 6:40 PM

Great report.

Byron York is reporting that the GOP’s not going to let this rest with Sebelius withdrawing the program but instead will move to repeal CLASS entirely.

Wanna make a bet?

rrpjr on October 14, 2011 at 6:41 PM

He’s working around to ‘Let me get it right in my second term’…

I really can’t stand this A$$hole…..I couldn’t stand Clinton….but Jug Ears puts Clinton in the shade…..

BigWyo on October 14, 2011 at 6:41 PM

Has crr6 been around lately? Hasn’t she been here to thank President Obama?

NoFanofLibs on October 14, 2011 at 6:39 PM

They don’t have Wi-Fi in the Occupy Park yet.

portlandon on October 14, 2011 at 6:41 PM

Byron York is reporting that the GOP’s not going to let this rest with Sebelius withdrawing the program but instead will move to repeal CLASS entirely.

Be nice if they could find a way to put that dried up old, lying bithy in prison….

BigWyo on October 14, 2011 at 6:43 PM

Mad isn’t it? While reading the post I seem to understand it, but then when I think about it and read some comments my mind just rejects the madness. Good post though.

obleo on October 14, 2011 at 6:45 PM

They don’t have Wi-Fi in the Occupy Park yet.

portlandon on October 14, 2011 at 6:41 PM

Soon enough. They are entitled.

Devastating: HHS abandons part of ObamaCare as fiscally unworkable

Fail

CW on October 14, 2011 at 6:46 PM

Republicans have got to start holding the Dems publically accountable for this type of debaucle. We’ve got to make the public understand the truth that once again the Left LIED.

katiejane on October 14, 2011 at 6:46 PM

Up twinkles for a very fine report, AP.

||||, ,||||

TXUS on October 14, 2011 at 6:46 PM

They knew all along, just like they knew all along that Solyndra was a bad bet. And yet in both cases they went ahead anyway because their agenda was more important to them than taxpayer money.”

Makes you feel all warm and fuzzy on the inside…

… doesn’t it?

Seven Percent Solution on October 14, 2011 at 6:47 PM

Is it O.K. to shout out “you lie” now??

KMC1 on October 14, 2011 at 6:47 PM

So I could do this$50/day federal plan, or I could enroll in a private disability insurance plan that would pay roughly 66% of my total wage. Let me think…
 
The solution, of course, is to outlaw private disability insurance.

rogerb on October 14, 2011 at 6:47 PM

Mandate coming in .. 3 … 2 … 1

OldEnglish on October 14, 2011 at 6:47 PM

OT…………..

Is anyone watching Gary Johnson on the Fox panel?

***double face palm***

Knucklehead on October 14, 2011 at 6:49 PM

Paul Ryan to the white courtesy phone…

… Paul Ryan, white courtesy phone, please.

Seven Percent Solution on October 14, 2011 at 6:51 PM

Oh something’s “bent” all right, but it ain’t the cost curve.

hillbillyjim on October 14, 2011 at 6:54 PM

Knucklehead on October 14, 2011 at 6:49 PM

He was awful. Kraut busted him 100% on the LRA/Libya thing and Johnson changed the subject entirely. Kirsten Powers was just smiling at Baier as if to say “why is this guy here?”

lorien1973 on October 14, 2011 at 6:55 PM

I’m in the industry. Even if the entire disastrous bill were repealed today, there is already so much damage done, that cannot be undone…

labrat on October 14, 2011 at 6:56 PM

Well, I guess this is another example of the AMF part of SCOAMF….

notropis on October 14, 2011 at 6:57 PM

, lying bithy in prison….

My spelling is atrocious…In lighter news…one of my closest friends just got a dog…female it was…..

BigWyo on October 14, 2011 at 6:58 PM

HotAir: its where I go if I’m feeling too cheerful.

I really like how virtually every democrat took the plunge with this fraudulent, awful legislation and when the republicans propose workable common sense solutions there are always at least six weak sisters in the Senate and twenty reach around “moderates” in the House to slip the bone in our side arse.

arnold ziffel on October 14, 2011 at 6:59 PM

And the Friday docu-dump is now finished for this week.

Mallard T. Drake on October 14, 2011 at 6:59 PM

Is it O.K. to shout out “you lie” now??

KMC1 on October 14, 2011 at 6:47 PM

Thread winner.

notropis on October 14, 2011 at 6:59 PM

I’m in the industry. Even if the entire disastrous bill were repealed today, there is already so much damage done, that cannot be undone…

labrat on October 14, 2011 at 6:56 PM

Mission Accomplished.

/Barry

Meh on October 14, 2011 at 7:00 PM

Women dying on the floor hardest hit.

Lily on October 14, 2011 at 7:01 PM

… Paul Ryan, white courtesy phone, please.

Seven Percent Solution on October 14, 2011 at 6:51 PM

Why isn’t this guy running for President? I don’t get it.

lorien1973 on October 14, 2011 at 7:01 PM

You are not thinking like a revolutionary. It was never intended to work any which way. It was just a kernel it bring fundamental transformation to everyone is wards of the one state. They as benevolent lord that can dictate who lives and dies to make everyone equal in life and death. With those who ancestors where wronged will be better than those whose ancestors wronged them.

One the fundamental transformation is complete, there is no fiscally unsound they will order the doctors to work for free of off to the gulag. They can just force someone else to be a doctor.

tjexcite on October 14, 2011 at 7:01 PM

Kathleen Sebelius is a SCOAMF.

TheAdmiral on October 14, 2011 at 7:03 PM

If you read the whole AP piece, it overworks the most pathetic raison d’etre for this dreck, which was that the cape cod orca himself “envisioned” it. Fyou wherever in hell you are, Teddy.

Western_Civ on October 14, 2011 at 7:03 PM

Last week AP posted a video of Judge Scalia appearing before the Senate Judicial Committee. The Judge talked about how it was good to have disputes in government. It slowed the legislative process down and the “fighting” from both sides ensured that the bills that passed were the best possible agreements that both sides could endorse. In other words, checks and balances keep the quality of legislation high.

Obamacare is Exhibit 1-A of crap legislation that is pushed through by a single party without any counter input.

Mallard T. Drake on October 14, 2011 at 7:04 PM

Why isn’t this guy running for President? I don’t get it.

lorien1973 on October 14, 2011 at 7:01 PM

Because he couldn’t compete with Gary Johnson?

Knucklehead on October 14, 2011 at 7:06 PM

This is a serious question (to or for anyone):

What *IS* that bulging lump underneath Obama’s lower lip that appears with increasing frequency lately?

Is it his tongue? Whattheheck IS it?

Lourdes on October 14, 2011 at 7:08 PM

Was CLASS part of the ObamaCare bill? If so, how can the executive branch simply decide not to implement part of the statute?

secant on October 14, 2011 at 7:08 PM

Fyou wherever in hell you are, Teddy.

Western_Civ on October 14, 2011 at 7:03 PM

He is down pretty far so the message felt by millions might take awhile.

arnold ziffel on October 14, 2011 at 7:10 PM

A total debacle. And the punchline is, everyone saw it coming — including the Democrats who went ahead and voted anyway to bring this Frankenstein to life.
————————–

Oops,we travel back into Bitter Politics!
==========================================

SEPTEMBER 16, 2009, 12:15 P.M. ET
Obama Pledges to ‘Own’ Health-Care Bill
****************************************

Mr. Obama said he would take responsibility for any health-care legislation passed.

“You know, I intend to be president for a while and once this bill passes, I own it,” he said.

“And if people look and say, ‘You know what? This hasn’t reduced my costs.

My premiums are still going up 25%, insurance companies are still jerkin’ me around,’ I’m the one who’s going to be held responsible.”
(MOre…………….)
========================

http://online.wsj.com/article/SB125287782334306891.html

canopfor on October 14, 2011 at 7:10 PM

If this had been a Republican President, and Republican congress admitting abandoning such a high priority pet project, the media would be all over it, and proclaim this Presidency a failure, and congress as incompetent.

In fact, the media would be calling the President a Lame duck, and saying he has no chance for re-election.

portlandon on October 14, 2011 at 7:11 PM

AAAAAAHHHHHH! We’ve begun the “devastating” shtick!

I lamented the use of the word “devastating” in 2008 (I think Hannity used it more than anyone). The Jeremiah Wright videos were supposed to be “devastating”… how’d that work out?

This could prove to be devastating, but we are still a long way to (a) defeating Obama and (b) killing Obamacare.

Watch for the use of “devastating” and similar to to increase as we enter 2012.

1: to bring to ruin or desolation by violent action

2: to reduce to chaos, disorder, or helplessness

Don’t think we are there yet.

mankai on October 14, 2011 at 7:11 PM

Just an excellent piece of work, Allah. Thank you.

a capella on October 14, 2011 at 7:12 PM

What’s the score on this being a ‘Well, we knew this wasn’t going to fly, so we give up’ kind of BS ahead of the SCOTUS ruling???

They are going to try and trim and tweak this POS for the next year..and the people doing the trimming are going to make a mint…Federal Tax Dollars!! .and I’m sure they’re not in touch with Kegan or her people not one damn bit for a minute….

BigWyo on October 14, 2011 at 7:13 PM

CLASS act.

Saltysam on October 14, 2011 at 7:13 PM

Given this and similar instances of this type of behavior how can anybody believe any of the economic numbers coming from this administration?

tommyboy on October 14, 2011 at 7:14 PM

Barack Obama — and I am SURE also Nancy Pelosi and Harry Reid — do.not.know.what.they.are.doing.

They are flinging dollar amounts around like mad monopoly players, they’re writing and damning legislation and policies like they’re trying to build an ant farm in someone’s basement without sand or ants…but I am sure that as to Barack Obama, that he does.not.know.what.he.is.doing other than trying to look like a Cool Pony. And failing at that, too.

Lourdes on October 14, 2011 at 7:17 PM

I wish I shared York’s optimism that the Republicans would make the Democrats vote on repealing CLASS altogether. Unfortunately, they just don’t play like that often enough.

toenail on October 14, 2011 at 7:18 PM

…Watch for the use of “devastating” and similar to to increase as we enter 2012.

1: to bring to ruin or desolation by violent action

2: to reduce to chaos, disorder, or helplessness

Don’t think we are there yet.

mankai on October 14, 2011 at 7:11 PM

And those Pee Party OWS Twinkle people come in real handy in that process, too.

Obama’s purpose seems to be one and only and that is to destroy the U.S.A.

Lourdes on October 14, 2011 at 7:19 PM

…program was a longstanding priority of the late Massachusetts Democratic Sen. Edward M. Kennedy.

This should be a nail in the oversized coffin that holds Ted Kennedy’s reputation. When Obamacare is once-and-for-all repealed can we finally bury Ted Kennedy and the commie horse he rode in on?

curved space on October 14, 2011 at 7:19 PM

This should be a nail in the oversized coffin that holds Ted Kennedy’s reputation. When Obamacare is once-and-for-all repealed can we finally bury Ted Kennedy and the commie horse he rode in on?

curved space on October 14, 2011 at 7:19 PM

Related:

Watchdogs: Temple for Ted Kennedy built with pork

John Kerry, Edward Markey request millions in public funds

By Renee Dudley – Boston Herald – 04/18/2010

The amount of taxpayer money being funneled to a Dorchester shrine to the late Sen. Edward M. Kennedy has ballooned to $38 million and could rise to at least $68 million this year, infuriating watchdog groups who insist the project should be privately funded.

With $38.3 million in federal earmarks already secured for the Edward M. Kennedy Institute for the United States Senate, Sen. John F. Kerry and Rep. Edward J. Markey (D-Malden) have in recent days tapped the government for $30 million more in the next budget.

The new taxpayer-funded total would cover the full $60 million estimated cost of building the project, adjacent to John F. Kennedy Presidential Library at Columbia Point. And it would put the public on the hook for nearly half the project’s $150 million target.

“If the Kennedy family wants to honor the family they should find a way to fund it themselves,” said David E. Williams of Citizens Against Government Waste, a Washington nonprofit group.

“They should be looking for private funding,” he said. “They’re using federal taxpayers as the funder of first resort. We need to be the funder of last resort.”

Williams and other critics called it “ridiculous” and an “egregious waste” that supporters want to siphon $28.9 million of the funding from the Defense Department budget alone. Nearly $19 million of that is already signed into law.

“It’s hard to fathom the defense-related portion of this project,” said Steve Ellis, a vice president of Taxpayers for Common Sense, a fiscal watchdog group…

Lourdes on October 14, 2011 at 7:22 PM

From da Archives!

Maybe this time, Americans will insist their Senators kill this deranged health-care scheme before it gets signed into law… instead of taking risks on a government that has never failed to disappoint them.

http://hotair.com/archives/2009/11/08/maybe-this-time/comment-page-2/#comments
==============

NO COST CONTROLS!!!!!!!!!!!!!!!!!!

For the Liberal Party,its gonna be Biblical!

The DeathKnell of the Liberal Party will come to
fruition when elections roll around,and thats if
there is any money left even to pay for an election!

Team Liberal,has ZERO JOBS CREATED,ZERO TAX BASE,and
the Utopian Lefty Mindset of the Economy is still in
the perverbally outhouse,and unemployment is actually
about 15 percent!!!!!!!

Its Spin Baby,Spin!!!!!!!!!!!!

But the Outstanding News is,that the Liberal Party will
own this Monstrosity!!

FOREVER!!!!!!!!!!!!!!!

canopfor on November 8, 2009 at 6:35 PM

canopfor on October 14, 2011 at 7:23 PM

Excellent, excellent post, AP.

John the Libertarian on October 14, 2011 at 6:33 PM

Yes, another excellent post; and thanks, AP.

Lourdes on October 14, 2011 at 7:31 PM

Up twinkles for a very fine report, AP.

||||, ,||||

TXUS on October 14, 2011 at 6:46 PM

Hilarious

tommer74 on October 14, 2011 at 7:32 PM

I cannot wait to call my Dem senator, Bill Nelson, whose office has given me many a runaround and boiler plate e-mails, and tell his staff how cynically irresponsible he and his cohorts have once more proved to be.

INC on October 14, 2011 at 7:40 PM

So is this in lieu of a document dump?

ctmom on October 14, 2011 at 7:44 PM

INC on October 14, 2011 at 7:40 PM

Be sure to ask them about the accounting fraud.

a capella on October 14, 2011 at 7:47 PM

a capella on October 14, 2011 at 7:47 PM

:D

INC on October 14, 2011 at 7:48 PM

HHS abandons part of ObamaCare as fiscally unworkable

Obama’s “New Coke” moment

BobMbx on October 14, 2011 at 7:49 PM

So, this scam accounted for anywhere from $70B- $86B of the supposed “savings” in OCare. How much did the now repealed 1099 scam account for? Seems to me that between these two completely bogus programs, OCare suddenly goes into the red.

BKeyser on October 14, 2011 at 7:49 PM

Don’t worry man – we’ll soon have Mittens in office and HE is the man to fix ObamaCare …

He can make it better, stronger, faster … FATTER!

OBAMNEYCARE!

HondaV65 on October 14, 2011 at 7:51 PM

Every last one of these pieces of human excrement should be behind bars for this. This kind of fraud in the private sector would land you in a federal prison. This should be no different.

jawkneemusic on October 14, 2011 at 7:53 PM

Force all the Democrats who rubberstamped this fraud last year to eat it in a highly public vote, and then let them explain to independents why they’ve gone from “this law will save America” to “this law can’t possibly work” in the course of 18 months. Can’t wait.

Mancrushin’ on AP.

BobMbx on October 14, 2011 at 7:55 PM

So, sounds like Romney is the ideal nominee, doesn’t it? At this point, I don’t care which R stops him (except Huntsman), he/she will have my support.

leftnomore on October 14, 2011 at 7:55 PM

I guess we’re finding out why Prominent Leftists like DWS and Jon Stewart took offense at their Cult Leader’s name being attached to this monstrosity.

ObamaCare is the exact opposite of the reform that is needed. As usual, free market solutions, competition, and less regulation (attn. Libs: less regulation =/= no regulation) is what is so badly needed right now. Health care is the most regulated & controlled part of the economy. Unleash the private sector.

visions on October 14, 2011 at 7:56 PM

HHS abandons part of ObamaCare as fiscally unworkable

Only part???

Then there’s still another 2000+ pages worth of work to do.

Wouldn’t it be much easier to type up a one-page TOTAL REPEAL of the entire Obamacare (aka “Affordable Health Care”) bill???? There is nothing in the entire bill which will actually work as advertised.

(And yes, I have read it: all of it.)

landlines on October 14, 2011 at 8:05 PM

Scum! The only reason they’re trashing this CLASS Act is Ted Kennedy is taking a dirt nap.

RedRedRice on October 14, 2011 at 8:06 PM

Only now is the White House finally acknowledging CHOKING ON it.

FIFY

maineconservative on October 14, 2011 at 8:23 PM

So, this scam accounted for anywhere from $70B- $86B of the supposed “savings” in OCare. How much did the now repealed 1099 scam account for? Seems to me that between these two completely bogus programs, OCare suddenly goes into the red.

BKeyser on October 14, 2011 at 7:49 PM

That’s not all — the bill also included $80 billion in profits from the federal takeover of student loans. If the higher education bubble is really about to burst, you can cut that number by about 76% as well.

Wonder how many of those OWS protestors know that their intolerable student loan debt is actually paying for a massive expansion of Medicaid?

rockmom on October 14, 2011 at 8:33 PM

canopfor on October 14, 2011 at 7:10 PM

That was another lie. Most of the major provisions of Obamacare don’t kick in until 2013, when Obama will either be out of office or (God forbid) safely re-elected. The entire monstrosity was specifically designed to protect Obama from ever having to be responsible to voters for it’s cost-increasing effects and, of course, he knew that when he made these claims.

AZCoyote on October 14, 2011 at 8:39 PM

If only someone had warned us this would happen if only there was someone who tried to tell the politicians this would not work and could not work and never worked anywhere its been tried. If only there was a group of people who had gone to town hall meetings and tried to stop this from becoming law.
What? Oh, well never mind.

Gwillie on October 14, 2011 at 8:43 PM

This (NSFW)!

pain train on October 14, 2011 at 8:46 PM

If we push the Democrats on this, won’t they just force it to be enacted?

hawksruleva on October 14, 2011 at 8:49 PM

…the bill also included $80 billion in profits from the federal takeover of student loans. If the higher education bubble is really about to burst, you can cut that number by about 76% as well.

Wonder how many of those OWS protestors know that their intolerable student loan debt is actually paying for a massive expansion of Medicaid?

rockmom on October 14, 2011 at 8:33 PM

Apparently, that doesn’t matter to the Left. I wrote about that on one of my sites BEFORE OCare was passed and the information was ignored (the Left gushed over OCare anyway, signed it).

All these alleged ‘youths’ now protesting what they claim to be lack of opportunities almost certainly all voted for Obama and continue today to support OCare. Yet it is Obama and OCare that has set about destroying their futures.

Lourdes on October 14, 2011 at 8:58 PM

Amazing that all this juggling of ‘do this’ and ‘pay now’ ends up being ‘debt’.

And people think that Medicare/Medicaid will last forever and yet the same Keystone Kops routine is going on there, just slower…

ajacksonian on October 14, 2011 at 9:06 PM

Total Repeal.

And some jail time for fraud of the American taxpayer for some HHS personnel and any “consultants” who purposefully hid the true numbers to “sell this bill” for over 2 years before finally caving to the truth. And Pelosi. Definitely want to see her carted off in handcuffs.

journeyintothewhirlwind on October 14, 2011 at 9:11 PM

rockmom on October 14, 2011 at 8:33 PM

Excellent point (as usual). Anyhoo, my theory as to why HHS is admitting this failure now instead of bumbling along (as they do with every other corrupt initiative) is they think they can sink Romney with it because of the association with Ted Kennedy.

Buy Danish on October 14, 2011 at 9:26 PM

The Great Unraveling has begun. SCOTUS will just need to tip it over the edge.

PattyJ on October 14, 2011 at 10:01 PM

Was CLASS part of the ObamaCare bill? If so, how can the executive branch simply decide not to implement part of the statute?

secant on October 14, 2011 at 7:08 PM

Yet another ‘real disgrace’: These a$$holes passed a bill that gave one person (Sebelius) the power to write and enact (or not) this $80B program. And that’s just the tip of the iceberg. Much of this stinking excuse for a law is written this way.

2ipa on October 14, 2011 at 10:18 PM

Two or two thousand pages

doesn’t make a difference since singular power is given to the secretary

in some ways she’s more powerful than the prezdint and can do incredible damage

that biotch could easily have said “go”

Sonosam on October 14, 2011 at 10:24 PM

The Left has to obfuscate about their policies and goals,
for if they told the truth, no one would support them.

Another Drew on October 14, 2011 at 10:30 PM

Count it!

WisCon on October 14, 2011 at 10:40 PM

Bart Stupak, please chime in. Bart Stupak…

SouthernGent on October 14, 2011 at 10:41 PM

Heh. I was on the right track. Via Doug @ the boss emeritus (emphasis mine):

You have to wonder just how bad of an idea this was, especially considering the plug was pulled by the same administration that gave the green-light to Solyndra. But I’ve got ten bucks that says Team Obama ends up throwing the blame on Romney and his advisers.

Buy Danish on October 14, 2011 at 10:45 PM

rockmom on October 14, 2011 at 8:33 PM

Last year the Federal contribution to the Disproportional Share Hospitals around the country was more than 11 billion. Obamacare cuts that funding & shifts all the costs to the states. That’s another phony “savings” of 11 billion.

batterup on October 14, 2011 at 10:47 PM

I briefly considered changing careers in 2006 and looked into the insurance business. While I did my due diligence, I discovered something I was unaware of – long term care insurance. There were several good companies out there offering long term care insurance, and if you get a policy (if you qualify for it based on health underwriting)in your 50′s, the policies were really affordable, considering long term care at that time was about $6K to $7K per year depending upon living in most states (not high cost states). The company I investigated also sold a very affordable medicare supplement insurance policy, too.

I was doing some research recently and could not find that same company in this business anymore. I thought that was strange at the time because it appeared to have an entire division devoted to this area of insurance, especially with the aging baby boomers. I had no idea that obamacare included long term care insurance in the program.

My question is, and I know I am just p*ssing in the wind here, why in the hell is the government going into this business when it was served by the private market?

Most people NEED long term care insurance. At least what used to be available in 2006. The statistics are that MOST people end up in long term care for the last 18 months of their lives, at a cost of about $100K to $150K overall. The policies that this company sold I think had a 6 month waiting period, too, I can’t remember. They also offered riders that would payback premiums after 10 years if services were never used, etc.

I was very offended and angry when Obamacare passed because I just knew it was designed to collapse the entire industry and result in government owned single payer, complete with health care rationing.

Now I am double offended that their accounting gimmicks (I knew those to be lies all along), included taking over a market that private insurance was covering, and scamming the taxpayers at the same time.

The Dems who voted for this all need to be taken out to the woodshed and beaten within an inch of their lives. But since that is illegal, we seriously need to remove them from office via the ballot box.

karenhasfreedom on October 14, 2011 at 11:22 PM

Typo above, *long term health care costs at $6K to $7K PER MONTH (not per year), sorry.

karenhasfreedom on October 14, 2011 at 11:32 PM

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