The Obamacare Chronicles: in which UPS proves me right

Posted by: Phineas on August 21, 2013 at 1:01 pm

**Posted by Phineas

"Train wreck"

“Train wreck”

The timing couldn’t be better. Yesterday I quoted an article from the Pittsburgh Tribune’s TribLive site reporting that, due to Obamacare, some companies were looking to save money by dropping spousal coverage.

Today UPS dropped the hammer:

UPS to drop 15,000 spouses from insurance, cites Obamacare

United Parcel Service Inc. plans to remove thousands of spouses from its medical plan because they are eligible for coverage elsewhere. The Atlanta-based logistics company points to the Affordable Care Act, or Obamacare, as a big reason for the decision, reports Kaiser Health News.

The decision comes as many analysts are downplaying the Affordable Care Act’s effect on companies such as UPS, noting that the move reflects a long-term trend of shrinking corporate medical benefits, Kaiser Health News reports. But UPS repeatedly cites Obamacare to explain the decision, adding fuel to the debate over whether it erodes traditional employer coverage, Kaiser says.

Rising medical costs, “combined with the costs associated with the Affordable Care Act, have made it increasingly difficult to continue providing the same level of health care benefits to our employees at an affordable cost,” UPS said in a memo to employees.

At the risk of wearing out this drum I’ve been beating, UPS is only doing the rational thing for the good of the company and its owners (1), because of the perverse incentives created by this anti-constitutional monstrosity.

This is one reason I’ve come to oppose the “Defund Obamacare” tactic pushed by Heritage and Senators Cruz, Lee, Paul, and Rubio (2), even though I’m unalterably against Obamacare: this thing is falling apart on its own, both through missed deadlines and because of the pain and dislocation it’s starting to cause Americans, such as those 15,000 UPS workers.

But recognizing that it’s collapsing of its own poor design does not meant that we can sit back and relax, because, per the far Left’s plan, the problems of Obamacare will be used to pave the way for truly nationalized single-payer health care. Don’t take my word for it – ask Harry Reid. If we let them, this is exactly what they’ll do. It’s up to us to point out at every opportunity (such as when the UPS guy happens to mention losing his wife’s coverage) that all this is a result of not a few problems in Obamacare that need fixing, but of the law itself. The whole thing.

The basic concept, not just its execution.

If we do the political work to beat the Left’s propaganda and show how Obamacare harms the average American, we can still repeal this thing in 2017, or so reform it that it will be like repeal.

Obamacare delenda est.

via Jim Geraghty

Footnote:
(1) In this case, mostly shareholding mutual fund companies, which certainly include a a large number of pensioners. You don’t want retired people hurt, do you?
(2) “Oppose” means just that: I disagree with their strategy, while still liking, admiring, and generally agreeing with them. It’s the Left that likes to anathematize people for varying from accepted group-think. I just think they’ve misread the tactical situation badly and instead risk leaving Obamacare in place by failing.

(Crossposted at Public Secrets)

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3 Responses to “The Obamacare Chronicles: in which UPS proves me right”

Comments

  1. Steve Skubinna says:

    You get the kinds of behavior you incentivize. Why this seems to surprise the Dems and progs is inexplicable. However, if the ACA had been designed to break the current system of health care, and simultaneously force permanent employees into part time, and dissuade employers from adding new hires (and I am neither saying it is nor isn’t) it would be working precisely as it is now.

    So unintended consequences, or a deliberate wrecking?

  2. ST says:

    Steve asks: “So unintended consequences, or a deliberate wrecking?”

    Rhetorical question? ;)

  3. Phineas says:

    So unintended consequences, or a deliberate wrecking?

    Both. It just depends on which wing of the Democrats you’re talking about: the progressive dupes or the DSA faction that actually runs things there.