ObamaCare and the Arc of Conservative Wishful Thinking

HHS simplified the application form, but is the health law still too complicated?  [Credit: TakePart.com]

HHS sim­pli­fied the appli­ca­tion form, but is the health law still too com­pli­cat­ed? [Cred­it: TakePart.com]

“The Oba­maCare Blame Game” is the title of a piece by my friend and Hud­son Insti­tute fel­low Tevi Troy that will soon be pub­lished in the June 2013 Com­men­tary [no link avail­able]. Pars­ing the state­ments of Pres­i­dent Oba­ma and oth­er Demo­c­ra­t­ic lead­ers, Troy observes a curi­ous turn in how they talk about their new health care law: they have begun to admit that it might not work out as well as planned.

The law’s crit­ics have made that point for years. The law is big, cost­ly, com­plex and high­ly depen­dent on how indi­vid­u­als, employ­ers and states will react to its new man­dates and induce­ments. These reac­tions can be mod­eled but can­not be known until the law takes effect. Healthy indi­vid­u­als may refuse to buy insur­ance, employ­ers might stop cov­er­ing their work­ers, and many states already have refused to do their part in imple­ment­ing and admin­is­ter­ing the law’s cen­tral features.

For more than three years, the law’s back­ers dis­missed these as the fevered fan­tasies of its haters. They point­ed to analy­ses by the Con­gres­sion­al Bud­get Office and oth­ers sug­gest­ing that the law would work pre­cise­ly as designed.

Now they’ve begun to hedge their bets.  Troy cites recent com­ments by the Pres­i­dent:

“And when you’re doing it nation­wide, rel­a­tive­ly fast, and you’ve got half of Con­gress who is deter­mined to try to block imple­men­ta­tion and not ade­quate­ly fund­ing imple­men­ta­tion, and then you’ve got a num­ber of mem­bers of — or gov­er­nors, Repub­li­can gov­er­nors, who know that it’s bad pol­i­tics for them to try to imple­ment this effec­tive­ly and some even who have decid­ed to imple­ment and then their Repub­li­can- con­trolled state leg­is­la­tures say don’t imple­ment and won’t pass enabling leg­is­la­tion, when you have that kind of sit­u­a­tion, that makes it harder.

“But hav­ing said all that, we’ve got a great team in place. We are push­ing very hard to make sure that we’re hit­ting all the — the dead­lines and the benchmarks.”

Troy nice­ly sums up the President’s point:

“The log­ic is unavoid­able: should Oba­maCare fail, then the fail­ure will be the respon­si­bil­i­ty of that ‘half of Con­gress’ that is ‘not ade­quate­ly fund­ing imple­men­ta­tion.’ But should it suc­ceed, then all cred­it will be due to Oba­ma and his ‘great team.’”

The sur­pris­ing aspect of the President’s com­ments is not that he blames oth­ers for prob­lems with a law that his own par­ty wrote and that he signed. That is a core fea­ture of his lead­er­ship style, the leit­mo­tif of his Pres­i­den­cy. Prob­lems are invari­ably some­one else’s fault and he can’t be expect­ed to clean up a mess he didn’t make. The sur­prise is that, on the eve of imple­ment­ing the sig­na­ture leg­is­la­tion of his Pres­i­den­cy, he acknowl­edges that it just might not work out so well after all.

As Troy notes, the health-care-law-might-fail-and-it’s‑the-Repubicans’-fault-if-it-does talk­ing point has been picked up by oth­er promi­nent Demo­c­ra­t­ic lead­ers, includ­ing HHS Sec­re­tary Kath­leen Sebe­lius and Sen­ate Major­i­ty Leader Har­ry Reid (D‑NV). The prospect that the law will pro­duce bad news for Democ­rats in the run-up to next year’s mid-term elec­tion has moved from Repub­li­can fan­ta­sy to Demo­c­ra­t­ic fear. And Democ­rats are respond­ing to that fear by blam­ing Republicans.

The New York Times recent­ly entered the fray by spon­sor­ing an online “Room for Debate” enti­tled, “Is Oba­maCare Too Com­pli­cat­ed to Suc­ceed?”  The Times’ defen­sive­ness on this point was reflect­ed in the fact that only one of the nine debaters – Michael Can­non of the Cato Insti­tute – oppos­es the law.

Dean Bak­er of the Cen­ter for Eco­nom­ic and Pol­i­cy Research offered up points that large­ly were repeat­ed by the law’s 7 oth­er online sup­port­ers. In a piece enti­tled, “The Only Real Prob­lem is Polit­i­cal,” Bak­er observed that the cur­rent sys­tem is com­pli­cat­ed (irrel­e­vant), that the law is com­pli­cat­ed because Democ­rats pan­dered to spe­cial inter­ests (also irrel­e­vant), and that Con­gress should have enact­ed a sin­gle-pay­er sys­tem (again irrel­e­vant). He did allow that “there will undoubt­ed­ly be many glitch­es,” but took up the President’s line that the real prob­lem with the law’s imple­men­ta­tion was not its com­plex­i­ty but its critics.

Oth­er debaters also argued that the law will ulti­mate­ly work out just fine and that it would work even bet­ter if Repub­li­cans would just shut up. Only the Cato Institute’s Can­non sug­gest­ed that the law might fail – due not only to its com­plex­i­ty but, more impor­tant­ly, to its unpop­u­lar­i­ty. “Oba­macare may be the law of the land,” Can­non con­cludes,” but it lacks legit­i­ma­cy. So does its implementation.”

The notion that the law lacks legit­i­ma­cy is embed­ded in the con­ser­v­a­tive psy­che. Con­ser­v­a­tives have crit­i­cized the exclu­sion of Repub­li­cans from the process of writ­ing the bill, the deals the White House cut with many in the health care indus­try, and the sweet­en­ers insert­ed into the bill to pro­cure 60 Sen­ate votes (spe­cial pro­vi­sions added to win the votes of waver­ing law­mak­ers, with names like “Louisiana Pur­chase,” “Corn­husker Kick­back” and “GatorAid”). They have chal­lenged the law’s con­sti­tu­tion­al­i­ty and encour­aged states to resist its imple­men­ta­tion. They have even rebuffed efforts by the law’s crit­ics to strike spe­cif­ic pro­vi­sions like the indi­vid­ual man­date for fear that chang­ing the law might make it less objec­tion­able and some­how more legitimate.

Like the Admin­is­tra­tion and Con­gres­sion­al Democ­rats, they have insist­ed that Oba­macare be imple­ment­ed in its unadul­ter­at­ed form, con­fi­dent that a law that is not legit­i­mate can­not stand.

This con­fi­dence remains unshak­en, despite repeat­ed dis­ap­point­ments over the past 3–1/2 years. At first, con­ser­v­a­tives believed that the elec­tion of Scott Brown in Jan­u­ary 2010 would block the law’s enact­ment. Then they believed that the Novem­ber 2010 elec­tions would pro­duce repeal (37 repeal votes lat­er, that remains high­ly unlike­ly).  They then placed their faith in the Supreme Court, believ­ing it would scut­tle the law.  Next, they (reluc­tant­ly) pinned their hopes on the elec­tion of Mitt Rom­ney, who cham­pi­oned the law’s pro­to­type as Gov­er­nor of Mass­a­chu­setts but nev­er­the­less vowed to “repeal Oba­maCare on day one.” Then they thought that the states would refuse to expand Med­ic­aid and estab­lish exchanges; some have, but the fed­er­al gov­ern­ment is set­ting up exchanges in those states and even many con­ser­v­a­tive Gov­er­nors have embraced the Med­ic­aid expan­sion. State resis­tance has not, in any event, blocked the law’s implementation.

Now the arc of con­ser­v­a­tive wish­ful think­ing reach­es its end­point. Hav­ing failed to derail the law at the bal­lot box, in Con­gress, in the courts and in the states, this hope only remains: that the law, once imple­ment­ed, will fall of its own weight.

This hope, too, will prove illu­so­ry. The law, in my view, has a thou­sand flaws. It is too cost­ly, too com­plex and gives the gov­ern­ment too much pow­er. Imple­men­ta­tion will make those flaws appar­ent, but won’t lead to its repeal. For one thing, a sub­stan­tial pro­por­tion of vot­ers will believe, con­sis­tent with the line that the Pres­i­dent and his acolytes already are ped­dling, that its unpleas­ant con­se­quences are the fault of Repub­li­cans. Just as many vot­ers who were unhap­py with the econ­o­my vot­ed to re-elect Pres­i­dent Oba­ma because they blamed his pre­de­ces­sor for eco­nom­ic stag­na­tion and job­less­ness, mil­lions will blame the Tea Par­ty for the program’s rocky start.

Then there are the count­less tens (hun­dreds?) of mil­lions that health insur­ers, cor­po­ra­tions, hos­pi­tals, drug and device­mak­ers, small busi­ness­es and oth­ers have spent in prepar­ing to com­ply with the law’s innu­mer­able require­ments. Many were skep­ti­cal when the law was enact­ed in March 2010 that it would hold up with­out sub­stan­tial change and many dis­like it still, but as they watched Con­gres­sion­al Repub­li­cans take large­ly sym­bol­ic repeal votes, they rec­og­nized that the law would be imple­ment­ed large­ly as writ­ten, leav­ing them no choice but to incur the com­pli­ance costs. Undo­ing the law now would mean all that mon­ey was wast­ed. And busi­ness­es hate to waste money.

Most impor­tant­ly, the law will ben­e­fit some peo­ple. Can­cer sur­vivors who couldn’t get insur­ance will find cov­er­age. The chron­i­cal­ly unem­ployed – and there are lots of them — will find gov­ern­ment-sub­si­dized health insur­ance more afford­able. You can’t spend $1.8 tril­lion with­out help­ing some­body. And those sto­ries, along­side tales of the law’s fail­ings, will rever­ber­ate through­out the main­stream and social media.  “It’s a stu­pid law,” peo­ple will say, “but at least Uncle Joe got health insurance.”

It is, of course, pos­si­ble that the present scan­dals or some unfore­seen event will weak­en the President’s pop­u­lar­i­ty to the point that prob­lems with the health law’s imple­men­ta­tion will become his Hur­ri­cane Kat­ri­na. Loss of pub­lic faith in his com­pe­tence could cause a loss of sup­port with­in his own par­ty, forc­ing him to agree to a sub­stan­tial rewrite of the law. But that pos­si­bil­i­ty strikes me as remote.

In the mean­time, the Admin­is­tra­tion will sol­dier on with imple­men­ta­tion efforts and the Pres­i­dent will seek to hang the blame for the law’s fail­ings on his polit­i­cal opponents.

2 thoughts on “ObamaCare and the Arc of Conservative Wishful Thinking”

  1. Excel­lent arti­cle. As usu­al you have the pol­i­tics and the issues summed up nice­ly. Always enjoy read­ing your updates.

    • Thanks, Joe. I have fun writ­ing these. Glad you’re read­ing. Your Sawx are hot!

      Doug

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