What if congress doesnt authorize increasing amounts of money for it? Its not like medicare is it?
It helps non-producing citizens... Isn’t that Obama’s goal?
“It’s a window into why Obama-Care costs will quickly spiral out of control.”
Right after Obamacare passed the HR manager told me that the Fortune 500 company I worked for was planning on dropping all insurance as soon as it kicked in and putting everybody on Obamacare with a self-paid medical account that takes advantage of some tax loophole. (I think you don’t pay taxes on the money you put into it, but if you don’t use it you lose it. The intention is you get a tax break on things Obamacare won’t cover.)
I’d guess that every company must drop health insurance if their competitors do. Otherwise, they’re at a competitive disadvantage. Also, they have to do it first, as it takes a year to get out of your insurance. A year of higher rates than your competitors could put you out of business.
If the bankruptcy plays out in court as filed (and as expected by many), unfunded (primarily union) pensions will probably take precedence over the general obligation bondholders, and may well take precedence over the secured debt. Up to now, general obligation municipal bonds have always been given priority over other forms of unsecured debt, such as pensions.
This effective shifting of the burden of the city council's fiscal irresponsibility will have a terrible impact on the muni market -- causing existing bond prices to crash, interest rates to soar, and sales of new obligations to pretty much dry up.
and now comes Chicago, La, Philly, etc, etc.
Hey Bam Bam! Economics is not a conspiracy theory!
Either way, economic growth will be stunted, making ObamaCare a lose-lose for everyone.