Page 2 - Subsidy Structure News Today

Theyre going to get pooled with a lot of other people. thats why -- >> jim, is that a better deal or -- final word, is it a better deal or not? >> much worse deal. people today, if theyre young and healthy can get relatively inexpensive insurance in the open individual market. youre right about income redistribution, though. if you think about it, its $250 billion a year in medicaid expansion, in the subsidy structure, thats basically being paid for by people on medicare, through medicare cuts, ...

Theyre going to get pooled with a lot of other people. thats why -- >> jim, is that a better deal or -- final word, is it a better deal or not? >> much worse deal. people today, if theyre young and healthy can get relatively inexpensive insurance in the open individual market. youre right about income redistribution, though. if you think about it, its $250 billion a year in medicaid expansion, in the subsidy structure, thats basically being paid for by people on medicare, through medicare cuts, ...

Or face a penalty. the problem with obama care yes, technologically things can be packed and fixed and rebooted. you cannot fix some the laws broken economic incentives. thats why the subsidy structure is so complex. late in the game decision from the administration to force people to give their personal information, including income before seeing any prices this plans is add toghtd complication. but those subsidies are not going to work in the long run to lower costs. >> we understand insurers ...

Now, what is going to happen is the farm bill is supposed to expire at the end of this year or just along with everything else. and there had once been hopes it would be included in some sort of grand bargain with the house and senate. the senate was working on one bill and the house on another type of bill and they never agreed so that is out of the picture. the problem here is the existing farm bill has a clause if it is not renewed if there s no new farm bill passed, then prices will revert t...

Now, whats going to happen is the farm bill is supposed to expire at the end of this year, along with everything else. there had once been hopes it would be included in a grand bargain with the house and the senate. but the senate was working on one bill, house was working on another type of bill. they never agreed. thats out of the picture. the problem is, the existing farm bill has a clause in it that if it is not renewed, if there is no new farm bill passed, prices will revert to the subsidy ...

You describe. >> i know that fruit cakes can also be used as a weapon. >> after time. >> after time, but that is what the president could do. he doesnt just have to ask them nicely to give up some of their hard earned cash. i mean he actually can demand it. he is the president, there are laws. >> not only that, he could alter subsidy structure, he could alter tax structure. >> youre right. this is all kabookie theater. this is all for the benefit of the people at home saying oh, my gosh, obama i...