Tim Carney relates the story of the Obama administration’s corrupt use of Medicare funds to conceal the effects of Obamacare. This is an amazing story that has been told previously by Jeffrey Anderson in the Weekly Standard and, as Carney reminds me, Benjamin Sasse and Charles Hurt in the New York Post:
Obamacare got some of its alleged savings by cutting Medicare spending by $500 billion. Republicans — hypocritically, given their constant attacks on “government-run health care” — made political hay over the Medicare cuts. Republicans know that seniors vote, and they like their Medicare.
Specifically, 12 million seniors use a program called Medicare Advantage, under which the government pays private insurers to cover seniors.
Medicare Advantage customers typically have more options, and at times more coverage, than standard Medicare customers. But the Obama administration said Medicare was overpaying the private insurers, and so the architects of Obamacare slashed $136 billion from Medicare Advantage to offset the cost of Obamacare.
The Medicare Advantage cuts were to begin in 2013, which would cause many insurers to pull out of the program, thus driving seniors into regular Medicare. So much for “if you like your plan, you can keep it.”
The New York Post’s Benjamin Sasse and Charlie Hurt explained the awkward details of timing: “Open enrollment [for 2013 Medicare Advantage] begins Oct. 15, less than three weeks before voters go to the polls.” So Obamacare would kick seniors out of their Medicare program three weeks before Obama’s re-election.
That, of course, would be politically damaging. So Obama simply took $8.35 billion from a Obamacare fund for “demonstration projects” and used it to delay the brunt of the Medicare Advantage cuts until after the election.
The GAO last week pointed out the extraordinary nature of this “demonstration.” The program “dwarfs all other Medicare demonstrations — both mandatory and discretionary — conducted since 1995,” the GAO stated.
And the GAO made it pretty clear that this slush fund trick looks little like a “demonstration” of anything. “The design of the demonstration precludes a credible evaluation of its effectiveness,” the GAO report stated, concluding it is “unlikely that the demonstration will produce meaningful results.”
But the Obama administration is looking for a different sort of “meaningful results” — more votes on Election Day. So the Department of Health and Human Services stood firm when the GAO recommended scrapping this spurious demonstration.
The administration’s sleight of hand on Medicare Advantage fits a pattern of Obamacare provisions that were abandoned when they were shown to be unworkable. What makes the Medicare gambit more distressing is that Obama is using taxpayer money for political purposes.
So far this amazing story has remained a deep secret of the conservative press. And no wonder, I guess. The story of this particular “demonstration project” demonstrates nothing so much as the corruption of the Obama administration and the coming disaster that is Obamacare.