Tag Archives: Costs

Obamacare waivers skyrocket to 729 including TONS of unions

From Michelle Malkin.

Excerpt:

The list is at 729 — plus 4 states (Massachusetts, New Jersey, Ohio, and Tennesse).

Among the many new union refugees are 4 new SEIU locals :

-SEIU Health and Welfare fund, 2000 with 161 enrollees

-Service Employees 32BJ North Health Benefit Fund* representing 7,020 enrollees

-SEIU Local 300, Civil Service Forum Employees Welfare Fund representing 2,000 enrollees

-SEIU Health & Welfare Fund representing 1,620

This is in addition to the three other previous SEIU waiver winners: Local 25 SEIU in Chicago with 31,000 enrollees; Local 1199 SEIU Greater New York Benefit Fund with 4,544 enrollees; and SEIU Local 1 Cleveland Welfare Fund with 520 enrollees.

Michelle pulled out a HUGE list of union-linked organizations that got waivers from Obamacare.

Michelle found the story in this post, which explains why the waivers are being granted.

Excerpt:

Last year, the HHS website was very efficient posting a list of ObamaCare waivers that had been granted. Ususally by the 3rd of the month the list was updated to included waivers that had been approved in the previous month. But something happened in January. Two weeks into the month no new waivers had been posted.

I was curious what caused the delay so I made some calls. Last Tuesday I spoke by phone with a media relations employees of HHS. She was not allowed to speak on the record, but after checking with folks at OCIIO who handle the ObamaCare waivers, she was able to inform me in a “not for attribution” way that the latest batch of waivers had in fact been processed. There was no specific hold-up that she could identify, they were simply running behind in getting the information on the website.

Well today, the day after the President’s State of the Union, the new waivers are up.

[…]This ever-expanding list of waivers is the direct result of ObamaCare raising the annual benefit caps on certain health plans. Obviously, a plan with higher annual limits is potentially more costly than one without them. The money to cover the difference in premiums has to come from somewhere. Without the waivers, it will come from the employer who are forced by law to upgrade to the more expensive plan. In other words, the 729 organizations who have received waivers are not seeking refuge from an unintended consequence, but from the costs associated with one of ObamaCare’s features. The real question is what these businesses will do once the waiver program comes to an end.

Obamacare raises the cost of health care! But only for YOU – not for Obama and his cronies.

How lawsuit abuse hurts businesses and raises unemployment

Consdier this paper from the Heritage Foundation, featuring a variety of views on lawsuit abuse.

Excerpt:

LAWRENCE J. McQUILLAN, Ph.D.: I am an economist. I focus on this issue as an economic issue, an economic problem. I have been working on this issue for about four years as a full-time project, and the first study that we did in 2006 was Jackpot Justice, which Hans mentioned earlier.

In this study, what we set out to do is measure the total cost of the U.S. tort liability system and put that cost in perspective. Hans mentioned a figure of $252 billion a year. That is the direct cost of the tort liability system, but what we wanted to do in this study is also measure the indirect cost. When we crunched the numbers, we arrived at a total of $865 billion annually as the cost.

It is a lawsuit industry. That’s really the way to look at it. It truly is an industry in terms of the size, scope, and amount of resources devoted to it. To put it in perspective, it’s roughly the size of the U.S. restaurant industry: About 6.5 percent of GDP would be the equivalent. It is about 30 times what the National Institutes of Health spends each year on finding cures for deadly diseases. It’s a huge amount of resources that are diverted toward, basically, a transfer system.

The Costs of Lawsuit Abuse

Every year, lawsuit abuse costs each American about $2,000. That is the cost that is factored into all the goods and services that we buy, from ladders to lawnmowers. Built into every price is a component to pay for liability insurance and lawsuit defense.

We estimated the wasteful part of that $865 billion to be about $589 billion a year. In other words, you could remove that part from this total cost and not change manufacturers’ incentives to produce safe products. You could still fully compensate truly injured individuals.

Here is one of the ways that lawsuit abuse changes the free market:

Indirect Costs: Defensive Medicine[…]The first one that gets talked about a lot these days is defensive medicine. Ninety-three percent of all physicians report practicing defensive medicine. These are basically unnecessary tests, procedures, referrals that they know are not really medically necessary to protect the patient, but they do them anyway to protect themselves from litigation. About 25 percent of all procedures, according to a survey last year by the Massachusetts Medical Society, are deemed by the physicians themselves to be unnecessary defensive medicine procedures.

We crunched the numbers in terms of how much this defensive medicine costs the economy. We arrived, in 2007, at $124 billion a year, which is about 8 percent of total health care expenditures. Today, that number would be roughly about $191 billion a year.

You also have to remember that these defensive medicine expenditures get passed along to all of us. We all end up paying for this in terms of our insurance. So insurance premiums go up, which then crowds out a lot of people from being able to afford insurance that they normally would be able to afford. We wanted to estimate what that costs. After crunching the numbers, we estimate that about 3.4 million Americans would have insurance today but do not because of the higher premiums due to just defensive medicine: today about $191 billion.

I think yesterday there was a report that came out that showed something like 14,000 people a year die because they do not have health insurance. It would not surprise me if a lot of these 14,000 people that die every year are part of those 3.4 million people.

And one more:

Indirect Costs: Research and Development

Another indirect cost of the excessive tort liability system is R&D impact. Of course, businesses have to spend a lot more money on legal defense that would otherwise go to product research and development, new product innovation, and new products being introduced. We estimated that total at about $367 billion a year of lost sales of new products that would otherwise come to market but do not because of the diversion of resources basically away from R&D and new product development toward legal defense: again, another huge indirect cost where it is hard to measure what would have been but is not.

Basically, the vaccine industry has fled the country. It is hard to find a manufacturer anymore in the U.S. that does vaccine development and manufacturing, primarily because of liability concerns. It was reported that the FDA granted the H1N1 virus vaccine to four companies to be manufactured, and without much of a surprise, three of the four companies are actually located outside the U.S.: Swiss, Australian, and French companies were all awarded the vaccine licenses.

There is one company in the U.S in Maryland, but I think it got the license to manufacture only because they have a technological advantage. They are going to produce an inhalable version of the vaccine rather than the standard injectable version. I think that is probably why they got a license. Otherwise, I think all of the manufacturers would have come from Europe or Australia.

That is a great example of how it really does impact U.S. business and how the liability system is forcing more and more business overseas. As a result, it hurts us in terms of the economy and job growth.

As another example, Volkswagen was going to introduce a three-wheel vehicle, very green technology, that gets about 49 miles per gallon. They were going to sell it in the U.S. for about $17,000 a vehicle. Probably most people in this room would not want to drive this vehicle, but I can tell you that where I come from in California, it would have sold well. It would have had a big market. It actually got qualified, too, to use the HOV lanes in California.

At the last minute, Volkswagen decided to pull it from the U.S. and not market it here because of liability concerns, but it is available in Europe. So once again, another example where European markets are perceived to be more favorable in terms of liability than the U.S.

I do not think it is any accident, too, that they tend not to have punitive damages in Europe and, also, that they have the loser pay system. This is another example of the indirect costs, fewer products available in the U.S. A lot of people probably would have loved to buy this car, but it is not available.

In terms of how expensive the U.S. system is compared to other countries of comparable standards of living, the estimate is that we have about 59 percent higher tort costs. These are direct costs. These are awards, attorneys’ fees, and administrative expenses. This does not include the indirect costs that I just talked about, but it gives you a good indication of our system compared to other systems in the world. It is just much more expensive for compensating injured individuals.

That is just one of the perspectives provided in this excellent article.

If we expect to have jobs in the future, then we should be thinking about who we expect to hire us. Tacking on frivolous costs onto business owners who develop products and services that we need means that there will be fewer businesses to hire us when we are looking for jobs and less choice and competition when we make purchases.

Keep in mind that trial lawyers are one of the pillars of the Democrat party, and they fight against any regulation of lawsuit abuse.

I noticed that Hans Bader published an article here talking about how the Supreme Court has been attacking businesses. This is one of the reasons why we are bleeding jobs to other countries. Judicial activism is hostile to business and the free market.

Women gives birth after NHS nurses send her home from hospital

From the UK Telegraph. (H/T Secondhand Smoke via ECM)

Excerpt:

It was a bitterly cold night in January when Geraldine Weller gave birth in the car park of a London hospital. Three hours earlier, the maternity unit had sent her away. Midwives who said they were short-staffed had confidently told her that it would be “ages yet” before she went into labour. They maintained that view even as her husband made frantic phone calls, reporting from their Surrey home that the baby’s head could now be seen.

In desperation, the couple ignored advice to stay put and drove back to the hospital. With her husband shouting into the security cameras of the maternity unit for help, Mrs Weller stepped from the passenger seat. As she did so, she gave birth to their first child, catching the newborn in one leg of her pyjamas.

She says: “We just huddled together. My husband came back and wrapped Henry in a bath towel, and finally one of the nurses came out and said: ‘What’s this?’ ”

[…]Last month, a survey of 25,000 women who had children in England last winter found that more than one in five was left alone during childbirth at a point when it worried them.

The rest of the article features eyewitness comments from midwives working within the system. Naturally, no real names were used because the NHS sanctions anyone who speaks out against their government-run health care system. The same kind of government-run health care that the Democrats want in this country.

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