Saturday, November 16, 2013

Obama's New Idea Is Setting Insurance Companies Up for Lawsuits

One concept liberals either don't grasp or just don't care about is unintended consequences. That a 2000 page bill would be rife with them should come as no surprise. Johnston's Theorem states that unintended consequences rise with the square of the number of pages in a bill.

And now we have Obama's desperate attempt to put lipstick on the healthcare pig by saying insurance companies can continue to offer their old plans for another year. More specifically, he's saying "I know it's the law, but we won't enforce it."

Aside from how constitutionally horrific this is, something Republicans are pointing out, there is an unintended consequence no one has pondered. If an insurance company goes ahead and continues people's plans, they are breaking the law. Now, it maybe true that Obama's army of bureaucratic enforcers won't go after them, but what about lawsuits? Lawsuits around insurance companies and healthcare are as common as breathing. If I sue my insurance company, say, next March over something, the centerpiece of my suit will be that they are breaking the law. Perhaps it will be a nice juicy class action suit ginned up by a law firm that specializes in such things.

What is the insurance company going to say? Yes, we knew we were deliberately breaking the law, but the president said it was okay? Oh, and the dog ate my homework.

This will be bad.


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