Wednesday, March 31, 2010

Health Care. A Look at Some of the Real Cost?

Caterpillar said Obamacare will cost it an additional $100 million in the first year; Medtronic warned that the new tax on its products "could force it to lay off a thousand workers;" Verizon told its employees that it "will likely have to cut health benefits to offset the new costs;" and AT&T announced that it will record a $1 billion non-cash expense in the first quarter and "will be evaluating prospective changes to the active and retiree health care benefits offered by the company."
Target is what is called a self insurer and they are looking at how this is going to effect them. Rumor has it that they will drop coverage or lay off many full time employees. The cost of doing business just went up and  Target will not be the only one to raise prices to cover cost.  Wal-Mart has put out numbers saying it will cost them millions and will increase prices in the future.

Does anyone really think that a company such as Caterpillar can keep jobs in the US and absorb these unsustainable cost?  Look for Cat to start moving more of it’s business overseas.  

These announcements are but the tip of the iceberg; hundreds like them will follow as Obamacare becomes a reality. Congressional Democrats, evidently stung by the bad publicity, are trying to strike back.  Evidence of this was shown this week when Sen. Waxman of California called the CEO’s to appear before Congress and bring everything they have, including e-mails that prove what they are saying to be true.  All Waxman and his henchmen want to do is to get the CEO’s in one place to lecture, threaten, and humiliate them. You can be assured that the CEO’s will not be allowed to show their evidence but be assured that Waxman will call them liars and thief’s because they want to operate and make a profit. There's nothing new in Congressional Democrats hauling businesses before some committee or other to brow beat them and get face time on TV.
Black-letter financial accounting rules require that corporations immediately restate their earnings to reflect the present value of their long-term health liabilities, including a higher tax burden. Should these companies have played chicken with the Securities and Exchange Commission to avoid this politically inconvenient reality? Democrats don't like what their bill is doing in the real world, so they now want to intimidate CEOs into keeping quiet.
Apparently, in this brave new world created by Obamacare, having an opinion about its benefits that is at odds with the ruling party is not good for the health of one's company.

 As I wrote earlier Waxman wants all internal communications connected to the analysis of how this provision will impact companies, including private emails. Andy McCarthy of NRO got it right in summation of this demand:

“If we are now under a system where disclosure gets you a public whipping and other threats by the Powers That Be while nondisclosure promises the ruinous expenses of defending against criminal investigations and civil enforcement, this is no longer anything but a thugocracy.” 
But then we already knew that didn’t we. 

Democrats in Congress have been using thug tactics since 2006 but then no one paid attention especially the Lame Stream Media. Now that they have a “fearless leader” in the White House who was trained in such tactics the use becomes more common. Don’t look for a lot to change until the elections in November and even then the “thug” factor will continue to be there and played by Obama at every opportunity. His propensity for hitting the campaign trail to sell his snake oil when faced with reality and questions of his reality or lack thereof will take on an even more threatening tone when he no longer holds the majority in both houses of Congress.  Every opportunity will be used to paint the right as the wrong and showing his way to be the only way.  If current responses by the LSM are any indication to the future expect them to continue to cover him like a blanket with warmth and goo goo sounds. The blanket is wearing thin but the LSM doesn’t seem to realize this yet.

A larger question perhaps looms on the horizon in the form of just how strong will the Republicans stand on repeal of this fiasco.  If Senator Cornyn of Texas (I am ashamed to say) is any indication, then look for that stand to last about as long as Custer’s last stand and be just as bloody.  Cornyn recently stated that ‘there is non-controversial stuff here, like the pre-existing conditions exclusion and those sorts of things.' Surely this so called Senator has the sense that God gave a goose to understand that a provision in the bill will completely change the character of insurance companies from private business to public utilities and others will adversely effect major industries in this country as well. Surely there must be something in the water in DC or Cornyn is once again holding his finger in the wind to check which way it is blowing before totally caving.  It is a character flaw of his or so it seems.  There is no place and this is no time for the weak of heart, the complacent, the sycophants school yard bully victim syndrome, it is time to stop tolerating such nonsense. Either grow a spine and demand full repeal or prepare for a long trip home come election day. 

If the Republicans in power today fail, fold and run away thinking they can fight another day they are in for a surprise. They will not have another day and this country may not survive long enough to find those who will stand up to the culture of corruption that inhabits Washington from the White House to the halls of Congress. 

That's my opinion. What say you?


Anonymous said...

"Nostrilitis " Waxman is evil

Fred G.

Anonymous said...

I say the American people voted for these bastards, not let the American people deal with it. It needs to be painful so that voters learn important lessons.

It has been painful; but I think it is only going to get worse.

Much worse.

Semper Fi


Ticker said...

Yeo Fred it does appear to be so doesn't it.

Mustang true but then for the foolishness of some the rest have to suffer as well. Yes, I am afraid it will get worse, much worse but there is a remedy be it at the ballot box or elsewhere.

Chuck said...

I think on a more practical level I would like to see how well the Dims do getting campaign contributions from the business community.

I am not saying this in support of our corrupt "pay for favors" campaign financing system, just an acknowledgment that this is how Congressional members and Presidents get elected.

Ticker said...

Chuck, your comment caused me to recall an e-mail from a classmate of mine. He had this to say:
I heard this last night. I know no one in manufacturing (produce goods you can touch) who supports Obama's agenda. I know very few in the service industries (produce nothing) who do not....

Do we shall see. Of course the Unions will throw their support behind the Dims for they are as corrupt as the Culture of Corruption in Washington. Should Shamasty get passed prior to November, which is the goal, then we have 20-45 million illegals who will vote the Democrat ticket down the line. We shall see!

Rosemary Welch said...

Congress is so stupid that they don't even remember that THEY are the ones that required businesses to disclose this info after Enron. *sigh*

If that were me (business owner)? I'd tell them to get a subpenae or shove it down their throats. I'd also remind them that we are living in a country that guaranttees me a representative REPUBLIC, not a thiefdom!

Maggie Thornton said...

When these companies come in, they are ignorant if they do not lay it out the way it is. This is the time to do it, and for gosh sakes don't be intimidated by this boatload of clowns. They should be solid with their information - straight from their accountants.

So much rides on this, I am really hoping they will shoot straight and dare Congress to do something about it. Someone has to start standing up.

I read today that Verizon is also announcing it will cost them hugely.

This constant calling of the marketplace to appear before Congress will end when the market makers start standing up for their rights.

It's dreadful, isn't it Ticker?

Ticker said...

Maggie the CEO's will tell it like it is but do you think that the American people will hear anything about it? No, all they will hear is how Waxman and his assortment of henchmen nailed the CEO's to the wall, which of course will be a lie but when has the LSM been truthful about anything in this Culture of Corruption Administration?