Monday, March 29, 2010

ObamaCare: Designed to fail, part 1

The CLASS Act: Provides long-term care at home for the elderly who need help with daily tasks. Enables the elderly and disabled to stay out of nursing homes.

Democrat Senator Kent Conrad calls it a "Ponzi scheme." Fees will be collected from all American workers unless they opt out of the plan. "By the end of the decade, government and private estimates point out, the CLASS Act will take in billions of dollars less than the monthly premiums can cover and could, in fact, be insolvent by 2021." (Washington Times, "Birnbaum: The not-so-Class Act," March 26, 2010)

Premiums (fees) would have to be jacked up to make up the difference, increasing costs, or else deficits would have to increase to cover the difference. The inflow of funds makes Health Care Reform look more fiscally responsible in the short run, but blows a hole in the budget in the long term. (Or will require even more tax increases and mandated fees.)

Obama: master of the game of "kick the can down the road."