Commentary Magazine


Topic: Verizon

Why Waxman Decided Against a Bully-athon

Daily Caller reports that Rep. Henry Waxman decided against a hearing to excoriate business executives for recording tax losses attributable to ObamaCare. The reason: not only did the companies have a legal obligation to do so (had they not, Sen. Carl Levin would no doubt be hauling them before his committee one day to decry the fraud on the shareholders); they also would have produced some very embarrassing evidence that ObamaCare is going to drive up health-care costs. The report explains:

Most significantly, documents unearthed by the investigation highlight companies that are considering dumping employees from their current health-care plans in the face of new costs from the health-care law. President Obama repeatedly promised his health-care law would let Americans keep their current insurance if they’re happy with it.

A March 3 internal Verizon memo on the impact health-care law said new taxes on insurance companies and health-care equipment manufacturers will be passed onto employers through higher prices.

Facing such increased costs, employers like Verizon “may consider exiting the health-care market and send employees to the exchanges,” the memo says.

Under the law, companies would pay fines for not providing insurance companies coverage. But, the Verizon memo said, the fines would be “modest” compared to providing coverage for employees.

In a March 25 e-mail, John Deere’s director of labor relations, Kenneth Hugh, said, “We ought to look at … denying coverage and just paying the penalty … we would need to figure out which one was more expensive.” John Deere faces a unique situation because of contracts with its unionized workers.

Whether or not companies are being forced to rescind employee coverage, they may need to raise insurance premiums, the documents show.

The top human resources official at Caterpillar said in a March 23 e-mail that the company will need to “figure out what this will cost us and collect that in increased premiums which we will attribute to the legislation”

Oops. Wrong answer. Bag the hearing. It seems that ObamaCare opponents would do well to get one or more of these execs in front of a committee and let them tell the American people what Obama and Waxman won’t — that ObamaCare isn’t going to guarantee they can keep their insurance and it is going to cost them a bundle. Republicans argue that divided government is needed to check Obama’s leftist agenda. As Waxman’s gambit shows, it’s also the only way to achieve congressional oversight.

Daily Caller reports that Rep. Henry Waxman decided against a hearing to excoriate business executives for recording tax losses attributable to ObamaCare. The reason: not only did the companies have a legal obligation to do so (had they not, Sen. Carl Levin would no doubt be hauling them before his committee one day to decry the fraud on the shareholders); they also would have produced some very embarrassing evidence that ObamaCare is going to drive up health-care costs. The report explains:

Most significantly, documents unearthed by the investigation highlight companies that are considering dumping employees from their current health-care plans in the face of new costs from the health-care law. President Obama repeatedly promised his health-care law would let Americans keep their current insurance if they’re happy with it.

A March 3 internal Verizon memo on the impact health-care law said new taxes on insurance companies and health-care equipment manufacturers will be passed onto employers through higher prices.

Facing such increased costs, employers like Verizon “may consider exiting the health-care market and send employees to the exchanges,” the memo says.

Under the law, companies would pay fines for not providing insurance companies coverage. But, the Verizon memo said, the fines would be “modest” compared to providing coverage for employees.

In a March 25 e-mail, John Deere’s director of labor relations, Kenneth Hugh, said, “We ought to look at … denying coverage and just paying the penalty … we would need to figure out which one was more expensive.” John Deere faces a unique situation because of contracts with its unionized workers.

Whether or not companies are being forced to rescind employee coverage, they may need to raise insurance premiums, the documents show.

The top human resources official at Caterpillar said in a March 23 e-mail that the company will need to “figure out what this will cost us and collect that in increased premiums which we will attribute to the legislation”

Oops. Wrong answer. Bag the hearing. It seems that ObamaCare opponents would do well to get one or more of these execs in front of a committee and let them tell the American people what Obama and Waxman won’t — that ObamaCare isn’t going to guarantee they can keep their insurance and it is going to cost them a bundle. Republicans argue that divided government is needed to check Obama’s leftist agenda. As Waxman’s gambit shows, it’s also the only way to achieve congressional oversight.

Read Less

The GOP in the Wake of ObamaCare

We are now a week out from the passage of ObamaCare, so it’s worth considering what approach the Republican party might take in the months ahead.

The first thing is to understand that, politically speaking, the GOP is in extremely good shape. President Obama succeeded in passing health care legislation — but he has not succeeded in making it popular. If you analyze the different polls that have come out since the passage of ObamaCare, it shows several things: the president received a slight bump, less than usual for a legislative victory of this magnitude, and it is in the process of evaporating. And because both parties are determined to make the midterm elections a referendum on ObamaCare — Democrats because they don’t want to leave it undefended, Republicans because they believe the public’s dislike of this legislation is intense and won’t recede — that is what the elections will largely be about.

Second, Republicans and their allies need to ensure that the president and Democrats now have full ownership of ObamaCare. That means creating benchmarks, such as when we begin to see increases in premiums and taxes, cuts in Medicare Advantage, employers dumping employees into the exchange once it’s up and running, an increase in the oversight activity of the IRS (which is responsible for enforcing this new mandate), and more.

The GOP also needs to highlight the negative, radiating effects of ObamaCare, as companies adjust to the new world they inhabit. For example, Caterpillar said ObamaCare would cost the company at least $100 million more in the first year alone. Medical-device maker Medtronic said that new taxes on its products could force it to lay off a thousand workers. The telecom giant Verizon warned that its costs will increase in the short term. As the Wall Street Journal editorialized last week, “Businesses around the country are making the same calculations as Verizon and no doubt sending out similar messages. It’s only a small measure of the destruction that will be churned out by the rewrite of health, tax, labor and welfare laws that is ObamaCare, and only the vanguard of much worse to come.”

In addition to highlighting the damaging effects of ObamaCare, Republicans need to sear into public consciousness the many false promises and assurances Mr. Obama and Democrats made. Here the stimulus package offers some helpful guidance. In order to pass it, and shortly after he signed it into law, the president and his team made guarantees about how many jobs it would create, including how unemployment would not rise above 8 percent. But a strange thing happened along the way. Unemployment topped 10 percent last year. We have lost rather than gained millions of jobs. The high expectations Obama had created were shattered, and with it the beginning of Obama’s credibility. And this, in turn, begins the downward political slide of the Democratic party under Obama.

The same thing can happen, in spades, with health care. Democrats know it, too. Just a few days ago, for example, Senator Claire McCaskill of Missouri said her party has probably oversold the legislation that just became law. “The side on which I’m on, that voted for the bill, probably is overpromising, [has] not been clear enough about the fact that this is going to be an incremental approach over time, [and] the benefits aren’t going to be felt by most Americans immediately,” McCaskill told MSNBC’s Joe Scarborough.

Memo to Ms. McCaskill: It’s a little late, Senator. The president has made, repeatedly and on the record, extravagant claims. He promised the moon and the stars. When those things not only don’t come to pass, but when people see that their lives are worse off thanks to ObamaCare, there will be a very high political price to pay.

Finally, the GOP needs to connect ObamaCare to the broader narrative it plays into: the modern-Democratic party is fiscally irresponsible to the point of recklessness, it is clueless when it comes to creating economic growth, and Democrats are enchanted with the prospect of centralizing power and control. At a time when trust in the federal government is near an all-time low and disgust with the federal government is near an all-time high, Barack Obama and Democrats have become, as never before, the party of big government.

This is something the GOP can work with.

What will matter, when all is said and done, are the real-world effects of ObamaCare. If it succeeds, then Obama and Democrats will have taken important strides to help them retain their majority status in America. If on the other hand you believe, as I do, that ObamaCare is a pernicious piece of legislation, one that will have terribly damaging consequences as its provisions uncoil, then Democrats will have inflicted on themselves enormous damage.

Both parties have waged everything on this fight. The midterm elections will give us an early indication of which one bet the right way.

We are now a week out from the passage of ObamaCare, so it’s worth considering what approach the Republican party might take in the months ahead.

The first thing is to understand that, politically speaking, the GOP is in extremely good shape. President Obama succeeded in passing health care legislation — but he has not succeeded in making it popular. If you analyze the different polls that have come out since the passage of ObamaCare, it shows several things: the president received a slight bump, less than usual for a legislative victory of this magnitude, and it is in the process of evaporating. And because both parties are determined to make the midterm elections a referendum on ObamaCare — Democrats because they don’t want to leave it undefended, Republicans because they believe the public’s dislike of this legislation is intense and won’t recede — that is what the elections will largely be about.

Second, Republicans and their allies need to ensure that the president and Democrats now have full ownership of ObamaCare. That means creating benchmarks, such as when we begin to see increases in premiums and taxes, cuts in Medicare Advantage, employers dumping employees into the exchange once it’s up and running, an increase in the oversight activity of the IRS (which is responsible for enforcing this new mandate), and more.

The GOP also needs to highlight the negative, radiating effects of ObamaCare, as companies adjust to the new world they inhabit. For example, Caterpillar said ObamaCare would cost the company at least $100 million more in the first year alone. Medical-device maker Medtronic said that new taxes on its products could force it to lay off a thousand workers. The telecom giant Verizon warned that its costs will increase in the short term. As the Wall Street Journal editorialized last week, “Businesses around the country are making the same calculations as Verizon and no doubt sending out similar messages. It’s only a small measure of the destruction that will be churned out by the rewrite of health, tax, labor and welfare laws that is ObamaCare, and only the vanguard of much worse to come.”

In addition to highlighting the damaging effects of ObamaCare, Republicans need to sear into public consciousness the many false promises and assurances Mr. Obama and Democrats made. Here the stimulus package offers some helpful guidance. In order to pass it, and shortly after he signed it into law, the president and his team made guarantees about how many jobs it would create, including how unemployment would not rise above 8 percent. But a strange thing happened along the way. Unemployment topped 10 percent last year. We have lost rather than gained millions of jobs. The high expectations Obama had created were shattered, and with it the beginning of Obama’s credibility. And this, in turn, begins the downward political slide of the Democratic party under Obama.

The same thing can happen, in spades, with health care. Democrats know it, too. Just a few days ago, for example, Senator Claire McCaskill of Missouri said her party has probably oversold the legislation that just became law. “The side on which I’m on, that voted for the bill, probably is overpromising, [has] not been clear enough about the fact that this is going to be an incremental approach over time, [and] the benefits aren’t going to be felt by most Americans immediately,” McCaskill told MSNBC’s Joe Scarborough.

Memo to Ms. McCaskill: It’s a little late, Senator. The president has made, repeatedly and on the record, extravagant claims. He promised the moon and the stars. When those things not only don’t come to pass, but when people see that their lives are worse off thanks to ObamaCare, there will be a very high political price to pay.

Finally, the GOP needs to connect ObamaCare to the broader narrative it plays into: the modern-Democratic party is fiscally irresponsible to the point of recklessness, it is clueless when it comes to creating economic growth, and Democrats are enchanted with the prospect of centralizing power and control. At a time when trust in the federal government is near an all-time low and disgust with the federal government is near an all-time high, Barack Obama and Democrats have become, as never before, the party of big government.

This is something the GOP can work with.

What will matter, when all is said and done, are the real-world effects of ObamaCare. If it succeeds, then Obama and Democrats will have taken important strides to help them retain their majority status in America. If on the other hand you believe, as I do, that ObamaCare is a pernicious piece of legislation, one that will have terribly damaging consequences as its provisions uncoil, then Democrats will have inflicted on themselves enormous damage.

Both parties have waged everything on this fight. The midterm elections will give us an early indication of which one bet the right way.

Read Less

Democrats Try to Smother the Bad News

As I’ve noted during the week, the ObamaCare steamroller is already flattening the bottom lines of a number of large employers. Not content to see billions of losses pile up, the Democrats have now begun to berate employers for accurately accounting for the anticipated losses. The Wall Street Journal editors note:

Henry Waxman and House Democrats announced yesterday that they will haul these companies in for an April 21 hearing because their judgment “appears to conflict with independent analyses, which show that the new law will expand coverage and bring down costs.”

In other words, shoot the messenger. Black-letter financial accounting rules require that corporations immediately restate their earnings to reflect the present value of their long-term health liabilities, including a higher tax burden. Should these companies have played chicken with the Securities and Exchange Commission to avoid this politically inconvenient reality? Democrats don’t like what their bill is doing in the real world, so they now want to intimidate CEOs into keeping quiet.

On top of AT&T’s $1 billion, the writedown wave so far includes Deere & Co., $150 million; Caterpillar, $100 million; AK Steel, $31 million; 3M, $90 million; and Valero Energy, up to $20 million. Verizon has also warned its employees about its new higher health-care costs, and there will be many more in the coming days and weeks.

Well, this is par for the course: a complete disregard for the consequences of their own handiwork, the bullying of private enterprise, and the determination to politicize what were once economic and legal judgments. One can see in the Democrats’ fury the desperate attempt to conceal the implications of their monstrous legislation, to maintain as long as possible the fiction that ObamaCare is a great cost-saver, and boon to employers. It’s going to be hard to keep up the charade, for as the editors note, ObamaCare “was such a shoddy, jerry-rigged piece of work that the damage is coming sooner than even some critics expected.”

In that regard the adverse consequences of ObamaCare will likely be more apparent than those of the ill-conceived stimulus plan, which “merely” added to the ocean of red ink. How will shareholders, small-business owners, employees, and retirees react as they see the damage pile up, and learn that there is more in store if the bill is fully implemented? Well, they might find “Repeal and Replace!” an attractive message.

As I’ve noted during the week, the ObamaCare steamroller is already flattening the bottom lines of a number of large employers. Not content to see billions of losses pile up, the Democrats have now begun to berate employers for accurately accounting for the anticipated losses. The Wall Street Journal editors note:

Henry Waxman and House Democrats announced yesterday that they will haul these companies in for an April 21 hearing because their judgment “appears to conflict with independent analyses, which show that the new law will expand coverage and bring down costs.”

In other words, shoot the messenger. Black-letter financial accounting rules require that corporations immediately restate their earnings to reflect the present value of their long-term health liabilities, including a higher tax burden. Should these companies have played chicken with the Securities and Exchange Commission to avoid this politically inconvenient reality? Democrats don’t like what their bill is doing in the real world, so they now want to intimidate CEOs into keeping quiet.

On top of AT&T’s $1 billion, the writedown wave so far includes Deere & Co., $150 million; Caterpillar, $100 million; AK Steel, $31 million; 3M, $90 million; and Valero Energy, up to $20 million. Verizon has also warned its employees about its new higher health-care costs, and there will be many more in the coming days and weeks.

Well, this is par for the course: a complete disregard for the consequences of their own handiwork, the bullying of private enterprise, and the determination to politicize what were once economic and legal judgments. One can see in the Democrats’ fury the desperate attempt to conceal the implications of their monstrous legislation, to maintain as long as possible the fiction that ObamaCare is a great cost-saver, and boon to employers. It’s going to be hard to keep up the charade, for as the editors note, ObamaCare “was such a shoddy, jerry-rigged piece of work that the damage is coming sooner than even some critics expected.”

In that regard the adverse consequences of ObamaCare will likely be more apparent than those of the ill-conceived stimulus plan, which “merely” added to the ocean of red ink. How will shareholders, small-business owners, employees, and retirees react as they see the damage pile up, and learn that there is more in store if the bill is fully implemented? Well, they might find “Repeal and Replace!” an attractive message.

Read Less

Flotsam and Jetsam

In case you thought Obama’s anti-Israel bent has gone unnoticed, Elliott Abrams reminds us: “My judgment is that most American Jews at this point think the Obama administration is simply unsympathetic to Israel, the president is unsympathetic to Israel. This has been a kind of sentiment in the community over the past year, though nobody wants to say much about it in public, partly because most Jews are Democrats. … The administration chose to make this a crisis. And the moment you see that is the use of the word condemn. We use condemn in diplomatic parlance almost exclusively for acts of murder and terror. We do not use it for acts of city planning.”

In case you thought the Orthodox Union didn’t have a sense of humor: “[W]e have to wonder — when we all are at Passover Seder Monday, and loudly declare: ‘NEXT YEAR IN JERUSALEM,’ will we all be subject to censure by the Administration? By the EU? By the UN? And what will they say at The White House seder? ‘Next year in a yet-to-be-negotiated part of Jerusalem?’ We think we should all say ‘next year in Jerusalem’ with a little more intent and oomph this year … and listen for the echoes.” Indeed.

In case you thought only Jews were fed up with Obama’s Jerusalem gambit, Quin Hillyer: “If the Jewish state can’t allow free people to build housing in Jerusalem, then the Irish state may as well not let Irish build in Dublin. And if the American administration tries to tell the Jewish state that it is wrong to merely advance by one mid-range step along a multi-step process towards permitting those buildings, then the Jewish PM has every right to tell the American administration the same thing Dick Cheney told the execrable Patrick Leahy.”

In case you had any doubt, Nick Gillespie shows why ObamaCare isn’t going to cut the deficit.

In case you thought health-care costs would go down, Verizon is already warning its employees to look out for the increase coming their way.

In case you doubted there was a fix for ObamaCare in sight in 2010: “A potential Republican majority may not be able to repeal healthcare reform, but they’d probably refuse to fund it, Minority Leader John Boehner (R-Ohio) said today. … ‘It’s going to take appropriated funds to actually come through the process to fund the hiring of new employees to create these new bureaucracies,’ Boehner said. ‘I can’t imagine that a Republican Congress is going to give this president the money to begin this process.'”

In case you thought Obama won the battle for public opinion on health care: “A CBS News poll released Wednesday finds that nearly two in three Americans want Republicans in Congress to continue to challenge parts of the health care reform bill.”

In case you thought emptying Guantanamo was going to make us safer: “A former Guantanamo detainee transferred from the detention facility to Afghanistan on Dec. 19, 2009, has already returned to the Taliban’s ranks. … Despite the fact that Hafiz was implicated in the murder of an [International Red Cross] worker, and alleged to have substantial ties to senior Taliban officials, he was transferred to Afghanistan. Shortly thereafter, Hafiz rejoined the Taliban.”

In case you imagined the Obami anti-terror policies were inspiring confidence: “Confidence that America is winning the war on terror is down slightly this month, and belief that the United States is safer today than it was before 9/11 has hit its lowest level ever. A new Rasmussen Reports national telephone survey finds that just 35% of voters think America is safer now than it was before the September 11, 2001 terrorist attacks.”

In case you thought Obama’s anti-Israel bent has gone unnoticed, Elliott Abrams reminds us: “My judgment is that most American Jews at this point think the Obama administration is simply unsympathetic to Israel, the president is unsympathetic to Israel. This has been a kind of sentiment in the community over the past year, though nobody wants to say much about it in public, partly because most Jews are Democrats. … The administration chose to make this a crisis. And the moment you see that is the use of the word condemn. We use condemn in diplomatic parlance almost exclusively for acts of murder and terror. We do not use it for acts of city planning.”

In case you thought the Orthodox Union didn’t have a sense of humor: “[W]e have to wonder — when we all are at Passover Seder Monday, and loudly declare: ‘NEXT YEAR IN JERUSALEM,’ will we all be subject to censure by the Administration? By the EU? By the UN? And what will they say at The White House seder? ‘Next year in a yet-to-be-negotiated part of Jerusalem?’ We think we should all say ‘next year in Jerusalem’ with a little more intent and oomph this year … and listen for the echoes.” Indeed.

In case you thought only Jews were fed up with Obama’s Jerusalem gambit, Quin Hillyer: “If the Jewish state can’t allow free people to build housing in Jerusalem, then the Irish state may as well not let Irish build in Dublin. And if the American administration tries to tell the Jewish state that it is wrong to merely advance by one mid-range step along a multi-step process towards permitting those buildings, then the Jewish PM has every right to tell the American administration the same thing Dick Cheney told the execrable Patrick Leahy.”

In case you had any doubt, Nick Gillespie shows why ObamaCare isn’t going to cut the deficit.

In case you thought health-care costs would go down, Verizon is already warning its employees to look out for the increase coming their way.

In case you doubted there was a fix for ObamaCare in sight in 2010: “A potential Republican majority may not be able to repeal healthcare reform, but they’d probably refuse to fund it, Minority Leader John Boehner (R-Ohio) said today. … ‘It’s going to take appropriated funds to actually come through the process to fund the hiring of new employees to create these new bureaucracies,’ Boehner said. ‘I can’t imagine that a Republican Congress is going to give this president the money to begin this process.'”

In case you thought Obama won the battle for public opinion on health care: “A CBS News poll released Wednesday finds that nearly two in three Americans want Republicans in Congress to continue to challenge parts of the health care reform bill.”

In case you thought emptying Guantanamo was going to make us safer: “A former Guantanamo detainee transferred from the detention facility to Afghanistan on Dec. 19, 2009, has already returned to the Taliban’s ranks. … Despite the fact that Hafiz was implicated in the murder of an [International Red Cross] worker, and alleged to have substantial ties to senior Taliban officials, he was transferred to Afghanistan. Shortly thereafter, Hafiz rejoined the Taliban.”

In case you imagined the Obami anti-terror policies were inspiring confidence: “Confidence that America is winning the war on terror is down slightly this month, and belief that the United States is safer today than it was before 9/11 has hit its lowest level ever. A new Rasmussen Reports national telephone survey finds that just 35% of voters think America is safer now than it was before the September 11, 2001 terrorist attacks.”

Read Less




Welcome to Commentary Magazine.
We hope you enjoy your visit.
As a visitor to our site, you are allowed 8 free articles this month.
This is your first of 8 free articles.

If you are already a digital subscriber, log in here »

Print subscriber? For free access to the website and iPad, register here »

To subscribe, click here to see our subscription offers »

Please note this is an advertisement skip this ad
Clearly, you have a passion for ideas.
Subscribe today for unlimited digital access to the publication that shapes the minds of the people who shape our world.
Get for just
YOU HAVE READ OF 8 FREE ARTICLES THIS MONTH.
FOR JUST
YOU HAVE READ OF 8 FREE ARTICLES THIS MONTH.
FOR JUST
Welcome to Commentary Magazine.
We hope you enjoy your visit.
As a visitor, you are allowed 8 free articles.
This is your first article.
You have read of 8 free articles this month.
YOU HAVE READ 8 OF 8
FREE ARTICLES THIS MONTH.
for full access to
CommentaryMagazine.com
INCLUDES FULL ACCESS TO:
Digital subscriber?
Print subscriber? Get free access »
Call to subscribe: 1-800-829-6270
You can also subscribe
on your computer at
CommentaryMagazine.com.
LOG IN WITH YOUR
COMMENTARY MAGAZINE ID
Don't have a CommentaryMagazine.com log in?
CREATE A COMMENTARY
LOG IN ID
Enter you email address and password below. A confirmation email will be sent to the email address that you provide.