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cal04

(41,505 posts)
Thu Jun 25, 2015, 04:41 PM Jun 2015

Paul Krugman: The Court and the Three-Legged Stool

Still on a high over the Supreme Court ruling. One especially gratifying and praiseworthy feature of the majority opinion was that it explicitly invoked the logic of health reform to justify the “interpretive jiggery-pokery” (can this be made into a dance step?) that so infuriated Scalia. From the opinion:

The combination of no tax credits and an ineffective coverage requirement could well push a State’s individual insurance market into a death spiral. It is implausible that Congress meant the Act to operate in this manner. Congress made the guaranteed issue and community rating requirements applicable in every State in the Nation, but those requirements only work when combined with the coverage requirement and tax credits. It thus stands to reason that Congress meant for those provisions to apply in every State as well.

Yes! The Court (minus the three stooges) understood that the ACA is designed to work via the “three-legged stool” of guaranteed issue and community rating, the individual mandate, and subsidies. All three elements are needed to make it work, which is why it was obvious to anyone who paid any attention that the lawsuit was nonsense.

The thing is, a lot of people on the right have never grasped this logic, either because all they need to know is that Obamacare is eevil big government, or because of the Upton Sinclair principle of finding it difficult to understand something when your salary depends on your not understanding it. But the court majority did the basic policy analysis, which gratifies my inner wonk as well as my outer health reformer.

http://krugman.blogs.nytimes.com/2015/06/25/the-court-and-the-three-legged-stool/?smid=tw-NytimesKrugman&seid=auto&_r=0

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CTyankee

(63,927 posts)
1. Love that man! I read his blogs every day...I even pay extra on our subscription for
Thu Jun 25, 2015, 04:55 PM
Jun 2015

the privilege. I particularly love his first sentence...not afraid to share his emotions...I remember his blog after his cat died and he talked about crying...http://krugman.blogs.nytimes.com/2012/10/29/doris-r-i-p-personal/

pampango

(24,692 posts)
2. "The Court (minus the three stooges) understood that the ACA is designed to work..."
Thu Jun 25, 2015, 04:59 PM
Jun 2015

"minus the three stooges"! Krugman does not mince words.

 

hifiguy

(33,688 posts)
8. I think that means Scalia is Moe.
Thu Jun 25, 2015, 05:56 PM
Jun 2015

He's the loudest, meanest, and the ringleader.

Which leaves Soapy Sam, the dullest personality of the three, to be Larry, and Uncle Ruckus as Shemp. There is no way he could ever be Curly, who was too clever and likable.

 

Prism

(5,815 posts)
3. The Right is cheering for a death spiral
Thu Jun 25, 2015, 05:00 PM
Jun 2015

Which is a slight possibility. It depends on making sure enough people, long term, go along with the ACA. If too many young people and others opt out, the insurance companies will have trouble making it work.

So this is, currently, the Right's most fervent hope. That insurance companies cannot make the ACA work, and a feedback loop materializes that causes the structure to collapse.

If subsidies had been removed, the death spiral would've been fait accompli. Since they are now upheld, it's a matter of observing the American public over the next couple years. Either enough enroll or they do not. I suspect they will once the ACA becomes an ingrained part of the system.

But conservatives really want that death spiral. They're pretending they care while quietly cheering for it.

CTyankee

(63,927 posts)
5. to me, the odds are that it will survive. More people will sign up. They are in increasing numbers.
Thu Jun 25, 2015, 05:43 PM
Jun 2015

I am encouraged.

 

Prism

(5,815 posts)
6. I agree with you
Thu Jun 25, 2015, 05:49 PM
Jun 2015

I think the more used people become to the system, the more others will enroll. The death spiral is a potential, but not a very likely one.

 

hifiguy

(33,688 posts)
7. In other words Roberts and the majority
Thu Jun 25, 2015, 05:54 PM
Jun 2015

actually looked at the real world and expressed legislative intent, then lined them up with each other.

Which is what judges do in such cases when they take their job seriously.

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