Obamacare and the Sequester

An interesting thing happened on the way to Obamacare implementation. The Sequester went into effect. This necessitated the across the board cutting of federal government programs. Staff has been reduced and services have been cut back. So how hard of a hit did Obamacare get hit?


There was no hit to Obamacare. To be fair, most of the provisions of Obamacare don’t get implemented till 2014. However, enormous amounts of resources are being directed by Health and Human Services (HHS) to get the exchanges created and ready by their Oct 1 due date.

Think about how many stories you have seen regarding HHS scrambling to get rules established, carriers signed on and infrastructure built. They are trying to put on a positive face and very well may be doing a good job.
However, you hear nothing about how the sequester has caused delays. You won’t hear about it either. That’s because there were NO cuts. Cut funding to air traffic controllers but not an unpopular law like Obamacare? Surely there were furloughs….

No Furloughs

You will not find anyone associated with Obamacare being furloughed. Gary Cohen, director of the Center for Consumer Information and Insurance Oversight, said Wednesday that his office has not cut its workers’ hours and pay as a result of the automatic budget cuts that went into effect in March.

Whitehouse tours got cut but not Obamacare. Rep. Greg Harper (R-Miss.) stated that “The fact that ObamaCare officials haven’t been furloughed shows that the cuts are political”

“We’re talking about at least a 15 percent furlough of current air-traffic controllers, resulting in delays and perhaps safety concerns, but yet this has been a selective political item by the administration,” Harper said.
Additional Spending for Obamacare

It appears that although Obamacare is part of the federal government, it has special dispensation to not lose any funding. In fact, not only has it not lost funding, HHS just signed a reported $14 million dollar contract to publicize Obamacare.

I find it difficult to believe that there is somebody left in the United States that has not heard about the Affordable Care Act. Are we not responsible enough as citizens to find the information if we are interested? In the big scheme of things, $14 million is a drop in the proverbial bucket. However, all these little drops eventually turn into a river.

The flood of rain drops will eventually splash upon the United States economy. The projected savings are already evaporating. There will be no $2500 savings per person. In fact, projections are that the costs will be close to $2500 more than they were in 2010 when the bill was passed. That will mean a $5000 projection shortfall.

Maybe its cynical in general but rarely does the government accurately forecast costs. This will just be one more of those missed projections that we will blame on a former administration. However, this time you have been warned.

One Comment

  1. Comment by be:

    Not to mention the >25% premium increases I sustained from 2011 to 2012 and again in 2012 and 2013! ~ be

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