When the Future Can Pay for Your Business Model

The federal government’s deus ex machina act with HealthSource RI is as good an example as any of how government shouldn’t (but inevitably will) behave.  There was a little bit less than the preferred 100% certainty that the state would allocate money for its experiment in health broker entreneurialism during the last session of the state General Assembly, and the administration of big brother Obama swooped in with the cash to keep the Web site going for another year.

It wasn’t supposed to do so, under the written word of the Affordable Care Act (ObamaCare), and the state wasn’t supposed to accept it, under the written word of Governor Lincoln Chafee’s executive order creating the health benefits exchange.  But what’s the rule of law and twenty-something million dollars compared with giving government agents the opportunity to experiment with a new business model?

If the U.S. Congress and the governor have to say one thing in order to get their big-government policies implemented and then ignore the specifics when they become inconvenient, and if more imaginary money has to be pushed to the resulting agencies, that’s just the price of trying to solve all of our problems via the political system.

The combined activities of Americas local, state, and federal governments now cost more per American household than the median American household brings home in income.  The federal debt is now higher than the national GDP.  In Rhode Island, the state government is suffering the consequences of its need to fill budget gap with one-time fixes and a ratcheting squeeze on residents, who are choosing to leave.

Last week, I checked in with HealthSource RI.  After the open enrollment period ended in March, the agency had 27,961 enrolled individuals, with 21,097 having paid.  By the end of April, 25,767 had paid.  As of August 2, HealthSource counted 26,686 enrollees and 25,892 people paid up.

The federal government, in other words, gave nearly $1,000 per enrollee just for the exchange’s operating costs.  That doesn’t include the subsidies that 85-90% of the enrollees are receiving.

It takes a little bit of education and imagination to see the consequences of this behavior.  All that money comes from somewhere, and by the looks of the recent trends, it isn’t the much-vilified One Percent.  Not being able to trust that the deal that politicians make actually means what they say it means when they first say it has consequences, too.

It may be the perfect crime, though.  As the machine works its destruction, those whom it kills and those from whom it steals can’t easily see who’s to blame.

Disclaimer: The views and opinions expressed in The Ocean State Current, including text, graphics, images, and information are solely those of the authors. They do not purport to reflect the views and opinions of The Current, the RI Center for Freedom & Prosperity, or its members or staff. The Current cannot be held responsible for information posted or provided by third-party sources. Readers are encouraged to fact check any information on this web site with other sources.

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