by James C. Sherlock
We know it every time we see it. It is the time-honored Congressional ritual of “temporary” federal subsidies.
Such subsidies for nearly anything that are positioned originally as “temporary” tend to be extended and then often made permanent entitlements. As with everything else, the people who get subsidies care far more about preserving them than those who are not subsidized care about eliminating them.
For example, see the nation’s system for regulating peanut farming. The federal government subsidizes peanut farmers and their incomes by restricting supply.
The laws require a Federal license in order to grow peanuts. Very few licenses have been issued since the early 1940’s. The result: Americans pay 50% more for home-grown peanuts than they would if the market was not restricted.
I can find no record that President Carter raised the issue.
In this case, concerning federal Affordable Care Act (ACA) subsidies, NBC news has alerted us to a pending issue.
During the open enrollment period for 2022 coverage, 307,946 Virginia residents enrolled in private qualified health plans (QHPs) through the Virginia exchange/marketplace.
It involves temporary federal subsidies to ACA Marketplace customers to keep demand high, supporting the prices that are paid to insurers and by insurers to hospitals and healthcare providers. These subsidies are set to expire.
The Kaiser Family Foundation published a study that shouts:
On average, premiums are set to rise by more than 50% for people getting health coverage through a (ACA) marketplace plan.
Wanna bet?
Continue reading →