Monday, May 16, 2022
Hawai'i Free Press

Current Articles | Archives

Monday, October 14, 2013
ObamaCare Is Not a Bailout for State and Local Governments
By NCPA @ 12:58 PM :: 3223 Views :: Health Care

ObamaCare Is Not a Bailout for State and Local Governments

NCPA October 14, 2013

As if ObamaCare's subsidies new taxes and regulations weren't bad enough, the law may also bailout spendthrift state and local governments by allowing them to eliminate retirees' health coverage, says Stephen Eide, a senior fellow at the Manhattan Institute's Center for State and Local Leadership.

While ObamaCare may well change state and local governments' approach to health benefits, it's far from clear that "bailout" serves as an accurate description of how this will all play out. And the term is generally unhelpful, because governments should be encouraged to pursue every possible option, including sending retirees to the federally subsidized ObamaCare exchanges, for unburdening themselves of their retiree health care commitments.

  • State and local governments collectively owe more than a trillion dollars for retiree health care, a benefit completely unnecessary for the purpose of attracting and retaining a qualified workforce.
  • Only one quarter of all large (200+ employees) employers now offer health benefits to retirees, down from two-thirds in 1988.
  • But 77 percent of state and local governments still provide what is often referred to as "OPEB," or other post-employment benefits.

Much uncertainty prevails over how ObamaCare will play out, but two points seem clear.

First, state and local governments are spending too much taxpayer money on retiree health care and should be considering every option available to them to get out of the OPEB business. At the very least, they should eliminate benefits going forward and for newer employees far from retirement.

Two, calling ObamaCare a bailout is misleading because it implies the law will encourage irresponsibility among state and local governments at the expense of taxpayers. Not so: Most governments will need to summon substantial political will to use ObamaCare to drop retiree health care coverage -- and most of them will be acting in taxpayers' interests if they do so. We should be encouraging them to pursue this course, not casting aspersions on it.

Source: Stephen Eide, "ObamaCare Is Not a Bailout of State and Local Governments," Real Clear Policy, October 8, 2013.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Back da Blue Hawaii

Ballotpedia Hawaii

Better Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Life Alliance

Hawaii March for Life

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT