Tag Archives: ObamaCare

OBAMACARE HITS CAMPUSES HARD

Higher education and its comfortable inhabitants on campus have long been hotbeds of support for Obama and Obamacare. Now, along with business and labor, i.e., the other inhabitants of what passes for the real world, they are about to become victims of one of its high “Cadillac” tax on generous health plans.

In 2009 President Obama gave assurances that he did not want any tax on health insurance plans he considered wasteful or too generous to affect average Americans. In one of his now famous talks broadcast on CNN, MIT economist Jonathan Gruber, “one of the men who helped draft the legislation, [explains] that is not only precisely what will happen — but that was the intention of the tax.”

Politico notes that “a mix of business groups and labor unions” are arm in arm — and up in arms — fighting to kill this tax. Unnoted in the article is that higher education also will be hit especially hard. The dramatic impact of the “Cadillac” tax on higher education has been noticed before, such as on this site (“Obamacare Hits Adjuncts Hard”) and Megan McArdle’s delicious putdown, “Whining Harvard Professors Discover Obamacare.”

Now, as the scheduled 2018 implementation of the tax gets closer and more and more colleges begin to adjust their health plans to deal with it, awareness of the impending pain is beginning to spread. In New Jersey, four of the state’s 11 public colleges and universities have dropped student health insurance, and three of Washington State’s 6 public institutions have done so as well.

A few more examples of tax-induced changes:

  • University of Virginia: “Major changes are coming to the University of Virginia health plan. With U.VA facing rising health care costs, spiking expenses of high-dollar claims and looming fees and taxes connected with federal health reform….”
  • University of Minnesota: “One of the state’s largest employers is proposing to scale back its employee health plans to avoid a massive tax penalty under the new federal health care law.”
  • Ohio University: “Ohio University employees might see their health care deductibles double and premiums rise because of a provision of the Affordable Care Act that taxes so-called “Cadillac” health plans, officials have said.”

In a mailing sent to “Dear Colleagues” last month, Ohio University provided a detailed explanation of the need for its changes:

The university’s health care costs are projected to increase by as much as 8% per year, or $4 to $5 million annually, for the next several years. Additionally, in 2018, the ACA will begin taxing high cost Cadillac health plans where health plan costs exceed $10,200 per year for individuals or $27,500 per year for families. As currently structured, the university’s PPO health plans are on pace to exceed these levels, and subject Ohio University to the Cadillac plan tax.

As more and more colleges and universities cut their benefits in order to make their health plans “sustainable,” I suspect the new campus fetish of “sustainability” will take a serious hit.

A Campaign Against the Koch Foundation

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There is an old saying in politics that “They don’t scream unless you hurt them.”  When your adversaries scream, it is a good sign that your measures have been effective. Judged by this standard, the Koch Brothers (David and Charles) have been very effective in recent years in advancing their causes of limited government and classical liberalism, much to the discomfort of liberal foes promoting business regulation, higher taxes, and ObamaCare.

The Koch brothers have been on the receiving end of non-stop attacks from liberal journalists and academics ever since Jane Mayer published a hit piece on them last year in The New Yorker purporting to show that their contributions were behind the rise of the “Tea Party” movement.  This wildly exaggerated claim was meant to cast the Koch brothers as great villains, but villains possessed of a satanic combination of power and tactical brilliance.  In a predictable course, Mayer’s fairy tale was circulated by the columnists and editorial writers of the New York Times and from there through a network of second-level columnists and political magazines until at length it came to the attention of the credulous foot soldiers of the liberal-left who have kept the pot boiling in recent months with ever more inventive and exaggerated versions of the original lie.     
 
The latest controversy surrounding the Kochs arises from an article published last week in the St. Petersburg Times titled, “Billionaire’s Role in Hiring Decisions at Florida State University Raises Questions.”  The author insinuates that the Koch Foundation was trying to “buy off” the Economics Department at Florida State University through a $1.5 million grant (paid over six years) to hire new faculty and to support graduate fellowships under a program in “political economy and free enterprise.”  Under the grant, a three-person faculty committee was set up to review candidates for the positions, including one member designated by the Foundation.  The paper suggested that by designating a member of the review committee the Foundation was undermining academic freedom by interfering in the faculty’s right to appoint colleagues on the basis of professional competence.   

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