Either President Obama has absolutely no clue how the real world works–and this is possible, as he went from academia to community organizer to politician–or he is trying deliberately to destroy the American health care system.
Fact is, businesses have spent the last three years preparing for the implementation of ObamaCare. That was passed by both houses of Congress, signed into law by the President, and upheld by the Supreme Court.
As a result, businesses have made capital planning decisions around their expected costs due to this law. They have laid off workers. They have cut workers from full-time to part-time. They have dropped coverage for certain workers because the coverage did not satisfy the requirements of ObamaCare. That dropped coverage was part of a business decision that was part of a capital plan that was negotiated with investors.
In addition, insurance companies have already made capital decisions regarding the plans that were dropped, and the addition of new, “compliant” plans. Because each state has its own rules for capital requirements, insurance companies must go to great lengths to ensure that they have the necessary reserves to cover the plans that they provide. They dropped the old plans–and added the new plans–with particular capital structures in mind.
As the old plans were dropped–and new plans added–companies made key changes in business rules, some of which are very complex. Those business rules were carried over into their respective IT systems. Developers for those systems have modified their code, made database changes, and have gone through several layers of testing to make sure the new rules are working.
Therefore, to pass a law–or, setting aside the legalities here, issue an executive order–allowing people to keep their old policies, with less than two months remaining in the year and with businesses having already made decisions with respect to capital and operations, does nothing to materially improve the situation, and in fact will only make things worse.
Fact is, even if we repealed ObamaCare today–permanently, effective immediately–a mother lode of damage has already been done. It will take years to recover from this disaster.
I am not defending the Republicans on this, however, as the Establishment has utterly failed to make a coherent case for free markets, and in fact is arguably in bed with the Democrats in their desire for fascism.