GAO finds fraud rampant in Obamacare subsidy program

Finding out what’s in it: A GAO report has found that the Obamacare bureaucracy gave out millions of dollars in subsidies to more than 35,000 applicants who did not qualify.

Worse, the GAO decided to test the system directly, and created twelve fake applicants whose applications had problems that should have prevented them from receiving subsidies The result?

It was able to secure $2,500 a month subsidies for 11 of those applicants. When CMS [the bureaucracy administering Obamacare] asked for documents to resolve inconsistencies in the files, GAO either sent fake documents or simply didn’t send anything. In both cases, CMS sent letters acknowledging receipt of documents and stating the matter had been resolved. Again, this was the case even when GAO had sent nothing in response to the initial CMS query. In the end, GAO was able to keep all 11 fictitious applicants on subsidies throughout 2014, each one directing about $30,000 in federal funds to an insurer under false pretenses. And it’s worth noting that, later on in the report, GAO makes clear it created this fake applicants with no prior or inside knowledge of any verification procedures that might be applied. This was something that anyone could have done.

There’s more at the link, such as the fact that the bureaucracy also decided, quite arbitrarily, to send subsidies to applicants who claimed they were not in prison, even if those applicants were on the official database of individuals in prison (and thus not qualified for subsidies according to the law).

But hey, Bernie Sanders, Hillary Clinton, and even Donald Trump want to use the government to administer health care. Trump might say he wants to get rid of Obamacare, but he also wants the government to run the system he will create to replace it. What could possibly go wrong?

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No security at Homeland Security

Does this make you feel safer? Homeland Security has lost 165 firearms and more than 1,300 security badges in the past three years.

The people running Homeland Security are generally the same people who want to prevent ordinary citizens from possessing guns. I would say instead that we all would be safer if we owned the guns and they were banned at Homeland Security.

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The Obama-like promises of Trump

During an interview on CNN yesterday, Donald Trump was asked about Obamacare and the insurance mandate. The first words out of his mouth were “I like the mandate,” which is what most conservative websites are focusing on.

I think it is more important to focus on Trump’s entire answer, which goes on for about two and half minutes. (I have posted the video below the fold, so you can listen for yourself.) As noted at the first link above,

Trump doesn’t have a freakin clue as to what he’s talking about. What he’s obviously done is extract a few focus group tested themes, like “dying on the street,” and “get rid of the lines,” and he simply says these over and over with connecting verbiage. The plan Trump refers to, the one that apparently suspends the idea of supply and demand and guarantees everyone a free lunch, simply does not exist. In the tech field it is a concept known as vaporware.

During Trump’s answer, he notes the dishonesty of Obama for making wild promises about Obamacare that were outright lies (‘If you like your plan, you can keep your plan. Period.” and “Obamacare will cut costs by $2500 per family.”). Trump then proceeds to spout his own wild and unrealistic promises about what he will do about healthcare when he is President. And they sound to me as dishonest and incoherent as the promises Obama made. Both set of promises remind me of school elections when I was in junior high school, where candidates would promise free ice cream at every break and soda machines in the halls. Such promises are silly, childish, and unrealistic, and the voters should try to be mature enough to see that.

Trump might be a better choice than Hillary Clinton or Bernie Sanders, but for Republicans to pick him as their nominee is insane. We can certainly do better.
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Bureaucrats fight over the regulation of commercial space

Battle of bureaucrats: The FAA’s office that regulates commercial space (AST) and the National Transportation Safety Boad (NTSB) are fighting over the procedures AST should use to control and manage the work of private space companies.

The issues deal with how the FAA inspects the work of space companies, prompted by the NTSB’s investigation into the Virgin Galactic SpaceShipTwo crash in 2014. The kerfuffle also illustrates the absurdity of the regulatory responsibilities that Congress forced on AST when it amended the commercial space act in 2004. Somehow it is expected that bureaucrats in Washington will know better how to make sure a private company’s new space designs are safe than the very engineers who are building them. The disagreement here is merely about how the bureaucrats keep watch. The NTSB wants AST’s bureaucrats to hover over them like a worried mother. AST wants to hover from a little farther away, like a proud father.

In either case, the hovering will accomplish little to make the cutting edge engineering more safe except create fake jobs in the government for hovering bureaucrats, while squelching risky innovation since such risks go against the instincts of every bureaucrat.

Though Congress has recently revised the law to ease its regulations, they didn’t really do much to remove them. Expect these kerfuffles to get bigger in the coming years as the Washington bureaucracy moves to impose its will on this industry while simultaneously manipulating the press and Congress to create more useless jobs for themselves.

If they succeed, we should also expect them to succeed in making innovative commercial development in space become increasingly impossible.

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Obamacare to increase costs 60%

Finding out what’s in it: A new report from the Congressional Budget Office estimates that, because of Obamacare, the cost for employment-based health insurance will rise by 60% by 2025.

These increases are on top of the increases we’ve seen in the past five years, since the law was passed. Moreover, the increases are going to cost the federal government trillions in the coming years, as the law requires the government to pay large subsidies for those in the lower income brackets who can’t afford these insane premiums. In fact, last year the tab was about $300 billion. And that’s only the start. Worse, these estimates by the CBO are routinely low.

Obviously, we should vote for one of the Democrats, who are promising to fix the problem by waving they arms and making it vanish, while also promising to provide everyone with free healthcare. Or maybe we should vote for the Republican named Trump who has made similar promises though not quite as ludicrous. Why not? What does reality have to do with anything anymore?

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Luxembourg to establish space property rights

The competition heats up: The government of Luxembourg today announced an initiative to establish a legal framework that will ensure property rights in space for private investors.

The Luxembourg Government announced a series of measures to position Luxembourg as a European hub in the exploration and use of space resources. Amongst the key steps undertaken, as part of the spaceresources.lu initiative, will be the development of a legal and regulatory framework confirming certainty about the future ownership of minerals extracted in space from Near Earth Objects (NEO’s) such as asteroids.

Luxembourg is the first European country to announce its intention to set out a formal legal framework which ensures that private operators working in space can be confident about their rights to the resources they extract, i.e. rare minerals from asteroids. Such a legal framework will be worked out in full consideration of international law. Luxembourg is eager to engage with other countries on this matter within a multilateral framework.

The announcement is a bit vague about what exactly Luxembourg really plans to do. For example, it is unclear if this framework will only apply to Luxembourg citizens, or will be used to bring the private efforts from other countries to Luxembourg (the more likely scenario). It also does not tell us how the initiative will deal with the UN Outer Space Treaty, which essentially outlaws countries from establishing their own legal framework in space. Individuals can supposedly own private property in space under that treaty, but no country can claim territory or impose its own legal framework on any territory, thus making any private property claims unclear and weak.

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The candidates’ take on science

The journal Science today posted this somewhat useful review of the positions that the presidential candidates have taken on a variety of science issues.

One must read this article while recognizing that Science is not trustworthy on many of these subjects. For one, its position is always for more funding. If a politician even suggests that the rate of budget increases should be trimmed, Science will frame that suggestion as if the politician wants to slash all spending for science.

For another, Science is quite biased and agenda-driven when it comes to climate change, and illustrates that bias in this article in its reporting on Ted Cruz (R-Texas) and his position on this subject. To quote:

Cruz has used his position as head of a Senate subcommittee that oversees climate research to question recent temperature trends. Last fall Cruz called climate change a “religion.” Voted no on a measure affirming that humans contribute to climate change. [emphasis mine]

The highlighted words above is a misstatement of what Cruz has said and serves to trivialize his position. He hasn’t questioned the “temperature trends”, which for almost two decades have been stalled. If anything, he has noted these trends as evidence that the theory of human-caused global warming has a problem. What he has questioned is the data that NOAA and NASA have been publishing. If anything, Cruz’s positions on the science of climate change have indicated that he has educated himself well on the subject, and has taken some thoughtful positions on it.

Nonetheless, this article is worth reviewing, as it reveals a great deal about the candidates. A close look for example at Rubio’s position on climate change reveals that he might not be consistent, and that his stated positions now might not match what he does should he become president.

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Average Obamacare premiums are unaffordable

Finding out what’s in it: Independent studies have found that the average cost for health insurance under Obamacare in 2016 will be about $300 a month for the program’s silver plan.

That’s not the biggest problem, according to analysts. For many, their health insurance has dramatically changed under Obamacare. Deductibles and out of pocket expenses are higher, so many of their medical expenses are no longer covered. Some consumers who say they had good, affordable plans prior to the Affordable Care Act say they can no longer afford the new plans, which are substandard in terms of what they cover.

Obviously, this means the voters should throw their support to the Democratic Party and any one of their presidential candidates, all of whom have promised to fix this disaster of a law with even more government-imposed rules.

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Gaming Obamacare

Finding out what’s in it: The Obama administration and health insurers are discovering that, because of the high cost of health insurance forced on consumers due to Obamacare, those consumers are improvising ways to “game the system”.

The article describes a whole range of tricks citizens are discovering that allow them to get insurance companies to pay for their health costs while paying those same insurance companies as little as possible. This example, which is not the focus of the story, encapsulates for me the entire insane nature of this monstrous law, forced upon us by Obama and the Democratic Party:

[Insurance companies] note many people have figured out they need pay for only nine months to get a full year of coverage. An enrollee might buy an ACA policy, get their health needs addressed and then let their coverage lapse — without having to pay the penalty for being uninsured.

It is only going to get worse. By not letting the free market function, the government is forced to ration care and impose restrictive rules, which people naturally try to improvise their way around, either legally or in a black market. The solution proposed in the article is even more restrictive rules and rationing.

The only real solution is to dump the whole thing and go back to the basic American principle of a free market. Such a system carries risk, but it forces the industry and the citizenry to find the most efficient solutions. It also depends on a very radical concept: personal responsibility.

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Rubio as establishment proves tea party won

David French notes that if Marco Rubio is now considered a RINO establishment candidate whom conservatives must oppose it demonstrates beyond doubt that the tea party has won the debate.

It seems that [Rubio’s] now the “establishment” candidate mainly because a number of establishment figures and donors have defected to him after their preferred candidate — perhaps Bush, Christie, or Kasich — failed to gain traction. But if the standard for establishment status is simply whether establishment figures have chosen to support you after their first-choice candidate fails, then every single GOP contender is either establishment or establishment-in-waiting. After all, if Rubio falters, mass numbers of establishment politicians and donors will rush to back Cruz over Trump. And if Cruz falters, those same people will presumably back Trump over Hillary.

Here’s the reality: In the battle — launched in 2010 — between the tea party and traditional GOP powers, the tea party largely won. The contest between Rubio, Cruz, and Trump is a fight between Tea Party 1.0, Tea Party 2.0, and classic American populism. And each one of these candidates would need traditional Republican or “establishment” support in the general election.

He’s right. The political debate is now being fought entirely on tea party terms, with those terms forcing the candidates consistently rightward on every issue. Not only is this a good thing, it suggests a major shift by the American public itself. Our so-called “intellectual elites” might still be liberal, standing there with their fingers in their ears and eyes closed chanting “La-la-la-la-la-la-la-LA!!” so they won’t get triggered by new ideas, but the public has heard what tea party advocates have said and has found those positions worth supporting.

This suggests to me that we might even be seeing a shift in the voting patterns of the low-information television voter, the kind of voter who only comes out during Presidential elections and routinely supports the Democratic candidate being pushed by the mainstream networks. If so, the Democratic Party is in very deep trouble, as they continue to behave as if their low-information voting block remains solid and under their control.

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