*Editor’s Note: This opinion is in response to a Lake View titled “A new day dawning” published in the Sept. 9 Lake Sun by Eric Reeve.
As usual Eric has his interpretation of the law and then the “real world” has the truth.
CBO (Congressional Budget Office), has revised the cost and reported in 2012, now estimate that the insurance coverage provision of the ACA will have a net cost of of just under $1.1 trillion from 2012-2021.
Additional Gross costs $1.5 trillion from Medicaid, the Children's Health Insurance Program and tax credits. Those figures will be offset because of the penalties that some Americans will pay of .4 trillion.
The gross costs of Obamacare are expected to be $1,083 billion dollars.
Social Security does not run with the same costs. It did not have a start-up cost, like Obamacare. So far it is estimated that the start up costs for Obama care are 38 billion dollars. Social Security did not have government subsidies. In fact in the drafting of the bill that was to be given to Congress it was President Roosevelt's position that this program be self supporting. When in the original drafting showed it to have a federal subsidy he sent it back and said this will be self supporting.
There is a bit if misinformation about the “benefit” part of Social Security.
SSDI and SSI are different. Meaning SSDI is paid out from the Social Security Benefit Fund, and SSI is paid through the Social Security but is funded by tax dollars from the treasury. So when people don't know the difference they assume that all Social Security is a federal government paid benefit.
Social Security during year 2025 will be looking for the federal government to allow them to cash in the U.S. bonds that Social Security bought with the surplus.
With the Obamacare costs this might be difficult for our government to honor those bonds and that can be another looming train wreck that a few of us will be facing as we prepare to retire and draw our (paid for by us and our employer) benefit.
I will say when the CBO furnished this report the Unions were not asking to be exempted. Congress had not passed the law for themselves and workers to be given a higher subsidy. So I am positive with these new changes we will see a different cost and I don't believe it will be less. Nothing about Obamacare has cost us less, in fact it is also known that insurance cost since the law passed has risen.
He is right that there was a flurry from people who didn't understand the Social Security Program but as the plan was put into effect, and they realized it could work, opposition turned to acceptance. With Obamacare, as the American public learns about the bill, the opposition grows. The Unions are a perfect example.
Page 2 of 2 - They helped lobby for the bill and now want exempted. What happened in the last two years Well as they learned what was in it they have come to the conclusion that this will cause them great financial hardship. Congress has come to that conclusion themselves.
In closing comparing Social Security and the Obamacare fiasco, is what we call in the business world, comparing apples to oranges. Doesn't work. I cannot see how anyone can be sold on a program that the legislatures who passed it won't even be participating in it.