Health Care and Logic

I am always amazed at the gaps in logic from the defenders of the ACA. Let us take as an example one MIT Professor who states:

"I am totally biased", xxx quipped about his advocacy of the Massachusetts program. “Nonetheless, if you look at the facts, I think it’s been, by the objective facts, a success.” He noted that about two-thirds of formerly uninsured residents are now covered, while premiums for individual insurance have dropped by about 50 percent.

First, yes he is biased. That in itself is not what an academic should be. One should seek the facts. It is like having dedicated dyed in the wool Marxists teaching in the Economics Departments. One would hardly expect a fair hearing. I believe he is speaking of Massachusetts. Yet the new insured are often under Medicaid and as such have very limited access to physicians. He continues:

xxx also emphasized that states’ adoption of Medicaid expansion is an important facet of the plan to monitor. The Affordable Care Act offers full federal funding of Medicaid (an expense that is normally split 50-50 between the federal government and the states) for three years, an amount that declines to about 90 percent thereafter. Yet governors in 26 states have declined to accept the funding, a stance made possible by a 2012 Supreme Court ruling — and one xxx labeled as “political malpractice.”

“There is no citizen in a state like Florida that is worse off if they expand Medicaid,” xxx suggested. “None. All of the [uninsured] get health insurance. Everyone else gets enormous federal stimulus injected into their economy.” He added: “That’s another thing to keep an eye on: How long are states going to hold out?” 

Now the logic fails as follows. If they expand Medicaid in Florida, or any state, the costs must be picked up somewhere. That means increased taxes or fees. That means that those who do not get Medicaid will see increased Government confiscation and thus an imputed harm. One then assumes that they are thus not better off but worse off.

In fact, as Medicaid is expanded, it is essentially "free" to the new subscribers but "paid" for by the limited Middle Class which is further squeezed. I have argued this for over fiver years now since the current Administration started this process.