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Richard Kirsch: How Obamacare Stiffs The Working Poor

Richard Kirsch from the Roosevelt Institute untangles the enormous mess that is the Affordable Care Act,
which will not only not remediate the problems of some of the poor who can't afford health care, it will cost them more money -- and still leave them uninsured! Look, there were some improvements in this bill (especially if you're in the middle class) but on the whole, this is going to be an enormous clusterfuck for the working poor. Read on:

The debate over fast food chains and their workers is revealing one of the biggest flaws in the Affordable Care Act. Many low-wage workers will be put in a very difficult position: pay a big chunk of their limited wages for health insurance that is costly to use, or pay a fine for the privilege of remaining uninsured. This is an example of how the debate around Obamacare is about to take a huge turn. Instead of partisan opponents fearmongering about the theoretical impact of the law, the new struggle will be around the actual experience of those Americans whom the law was written to protect: people who are uninsured because they can not afford coverage or are locked out of the system because they have a pre-existing health condition.

Yep. That's because so many of the Beltway insiders still believe (despite the original study that pushed the idea being debunked again and again) that the problem with health care costs is that people use it frivolously! "It's such a lovely day, let's all go to the doctors and demand MRIs -- because we can!" Hence, the infuriating guiding principle of "skin in the game." If we make it expensive enough, people will only go to the doctors when they need it. Hah.

Talk about "skin in the game" -- literally. I'm at high risk for skin cancer because of my coloring and that fact that I had several serious sunburns as a child. I've already had ten or so moles and skin growths removed, most of which came back as precancerous. The deductible under the Obamacare coverage I have was $30 or so -- but that was last year. I just got the bill for a growth I had removed in January. The new deductible? $544. So I've canceled the rest of the removals, because I just can't afford it.

And you know, it doesn't make sense. It's a lot cheaper to remove these things now than to pay for chemotherapy and radiation later. But this is what passes for intelligent public policy these days. Remember: It's not really health care if you can't afford to use it. It's the illusion of health care -- just like before.

Come January 2014, millions of people will get affordable health coverage for the first time. These will mostly be working people who do not get insurance on the job now but will become newly eligible for Medicaid or income-based tax-credits to buy insurance in the new health insurance marketplaces (“exchanges”). This will also include those who will no longer be turned down because of a pre-existing condition. The expansion of Medicaid – in states that give that the green light – and the income-based subsidies will create a huge new constituency for Obamacare that will oppose any attempts to roll back the law.

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Fox News continued its war on poor people today when it hyped Herman Cain’s highly dubious claim that people are using food stamps to pay for "fitness training," which he “learned” via a caller to his radio show.

It was not very surprising that Cain would repeat a thing like this without bothering to verify it. He isn’t exactly known for having a thirst for knowledge. But what’s Fox's excuse? Apparently, the “fair and balanced” network was so eager to re-air Cain’s characterization of food stamp recipients as moochers being exploited by a government that wants to make them dependent that nobody cared enough to verify whether Cain was telling the truth.

As banners on the screen screamed ON THE DOLE and then FOOD STAMP NATION, Steve Doocy announced that on Friday, “a document dump” from the federal government revealed a rise in Americans’ use of food stamps, the “biggest number in history,” he said. “47,791,996 Americans had to get these SNAP cards to put food on their table – they say," he said with a sneer.

Gretchen Carlson added, “So some people are concerned at the fact that this number has continued to escalate dramatically over the last couple of years.”

The concern was not that people are hungry or are not earning enough money to feed their families adequately. For example, as the Working Poor Families Project reported, "the number of low-income working families is increasing and nearly one third of all working families—32 percent—may not have enough money to meet basic needs." Also not mentioned: 55% of all food stamp recipients are children under 18 or the elderly, over 65.

And speaking of the working poor, let’s not forget that Cain bears a hefty chunk of responsibility for their plight:

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It is perhaps not a coincidence that the austerity shock troops have imposed their will on most of the Western world, steadily driving down wages, shredding safety nets and producing a growing, more permanent class of the working poor. But let's look at the bright side — once people are desperate enough, we're competitive with the Third World!

Europe’s long-running euro crisis may be cooling. But the economic distress it has left in its wake is pushing a rising tide of workers into precarious straits in France and across the European Union. Today, hundreds of thousands of people are living in campgrounds, vehicles and cheap hotel rooms. Millions more are sharing space with relatives, unable to afford the basic costs of living.

These people are the extreme edge of Europe’s working poor: a growing slice of the population that is slipping through Europe’s long-vaunted social safety net. Many, particularly the young, are trapped in low-paying or temporary jobs that are replacing permanent ones destroyed in Europe’s economic downturn.

Now, economists, European officials and social watchdog groups are warning that the situation is set to worsen. As European governments respond to the crisis by pushing for deep spending cuts to close budget gaps and greater flexibility in their work forces, “the population of working poor will explode,” said Jean-Paul Fitoussi, an economics professor at L’Institut d’Études Politiques in Paris.

To most Europeans, and especially the French, it seems this should not be happening. With generous minimum wage laws and the world’s strongest welfare systems, Europeans are accustomed to thinking they are more protected from a phenomenon they associate with the United States and other laissez-faire economies.

But the European welfare state, designed to ensure that those without jobs are provided with a basic income, access to health care and subsidized housing, is proving ill-prepared to deal with the steady increase in working people who do not make enough to get by.

The trend is most alarming in hard-hit countries like Greece and Spain, but it is rising even in more prosperous nations like France and Germany.