Transcript
A (0:00)
From unsolved mysteries to unexplained phenomena, from comedy gold to relationship fails, Amazon Music's got the most ad free top podcasts included with prime because the only thing that should interrupt your listening is, well, nothing. Download the Amazon Music app today. At vrbo, we understand that even the best of plans sometimes need a little support. So we plan for the plot twists. Every booking is automatically backed by our VRBO Care guarantee, giving you confidence from the very start. Whenever you need help, it's ready before your stay through the moments in between and after your trip. Because a great trip starts with peace of mind and maybe a good playlist. But we've got the peace of mind part covered. Welcome to the Compact Podcast. Today we'll discuss the expiration of Obamacare subsidies, the fate of Warner Brothers, and Ashley's weekend. Among the post liberals, joined by Ashley Frawley, of course, and by Jeff Schoellenberger and I'm Matthew Schmitz. So Republicans seem determined not to extend the Obamacare subsidies that came into effect in the wake of the pandemic. If they were extended, they would cost 350 billion over the next decade, according to government estimates. There's a fair bit of controversy around these. There's a perception that there's a good deal of fraud in the system. If you look at the numbers, many more people have been signed up for these subsidized plans who aren't making any claims. That number has gone from 20% of all plans, people who aren't making any claims, to 35%, possibly evidence that insurers are signing up people who have insurance elsewhere, maybe without their knowledge, so that they can get money in from the government to cover this premium, but they know they'll never have to pay anything out. So there are issues with the system. But there is also a fair deal of anxiety among Republican lawmakers that by failing to extend these subsidies, they're going to face an electoral bloodbath in the midterms. Jeff, what have you made of the debate?
B (3:04)
So I think I'm maybe repeating myself from a previous episode, but overall I think this is a revelation of the major weaknesses of the two major parties. On the Democratic side, I would say you really have Democrats playing the role of the conservatives here in the sense that they're attempting to prop up the system as it currently exists, which unfortunately is increasingly unstable and seems likely to collapse under its own weight. I would say this was was true of Obamacare as originally conceived, that attempted to resolve this contradiction generated by the system itself, which was that the way that insurance is provided leaves a great deal of leeway in the hands of the insurance industry. And you know, I think, I mean, we saw this around the kind of Luigi Mania thing that, you know, I wouldn't want to to make make excuses for or do apologetics for the insurance industry, but I do think the way that the insurance industry is, is set up as sort of the, the villain in this whole situation is, is overly simplistic. You know, the insurance industry is responding to incentives that are created by the system. It's also dealing with the fact that there, there's also a great deal of, of terrible behavior on the part of, of hospitals and private health care providers. And so that the whole system is, is full of, of corruption and of perverse incentives. And the way the Democrats set up Obamacare and the thing that they're attempting to do right now is, is essentially shield some portion of the public from the worst effects of these, these defects of the system itself as it's, as it's been kind of constructed in this, in this very ad hoc manner over the past, you know, roughly 100 years at this point. And so they're, they're, they're attempting to, you know, use subsidies essentially to mitigate the worst effects of, of this system on, on consumers by reducing their out of pocket costs and liabilities. And that's really how the, the whole system was set up in the first place. And you know, the, the real problem is that there's plenty to, to criticize in that approach. Um, you know, I think when, when you hear some Republicans say, well, you know, they just want to protect the insurance industry and help it continue to be profitable. I mean, there is a truth to that. But you know, the problem is that if you, if you didn't do that, that would have pretty catastrophic effects for a lot of people and that, that wouldn't be great either. So I, at least, you know, immediate term I think, you know, unfortunately the system is, is so screwed up that probably the only way to, to produce anything better would, would actually be to, to essentially kind of euthanize it in some, in some form and, and allow something else to replace it. But obviously there are too many vested interests for that to really be imaginable. So the, the better option, or sorry, not the better option, but probably the only option is for some sort of catastrophe to occur that will, you know, force a new system to be constructed. But you know, what we don't see on the Republican side is any, is any will or vision for, for doing that. You know, again, confirming my point that this is essentially the, the Democrats, you know, Obamacare thing is essentially a conservative project of sort of rescuing and propping up the system. Famously, it was based on a blueprint initially devised by the Heritage foundation and then implemented by Mitt Romney in, on the state level in Massachusetts. So it really has a kind of, you know, concert, even sort of conservative movement genesis. And you know what? I think what you've seen on the Republican side from the beginning is just a kind of sheer nihilism around the entire, around the entire situation. And you know, that there's sort of
