Obamacare dominates the news this week.  The Congress has passed a bill funding all federal government except Obamacare.   If the Senate rejects this bill, as is expected, the government may not have the funds to continue operations thus stopping some functions or shutting down the government all together.

Lots of resolutions are being proffered but none seems to have the ability to satisfy all sides.  Some call for stripping parts of Obamacare out of the Affordable Health Care law.  Some want to abolish it all together.  The president wants the law to be funded in full. 

It is not unusual for Congress to enact a law and then not fund it.  However, they seldom if ever are as large and important acts as this one which will totally reconstruct almost one-fifth of the American economy and have impact on all Americans.  

My recommendation is to fund the law and let it begin its major undertaking, to make every American buy health insurance.  I have written that the reason the law works is that the Feds have promised to subsidize the health care insurance cost for those who cannot afford this.  Most people who do not have health insurance now do not have it because they cannot afford it, thus the Feds will take care of the main reason for not having it, i.e. the Feds will pay all or part of the insurance costs for most, if not all, the estimated 40 million Americans who do not have this insurance now.

The problem is that no one knows how much this open ended commitment to pay part or all of the health care insurance for those not now insured will cost.  The Feds have made estimates that have been revised so frequently that they are truly questionable.  In essence the Feds are taking a leap of faith. 

While the Feds have no real idea of how much this purchase of health care for all will cost, there is an even more ominous cost that has not been considered by any projections or estimates.  And that is what will happen when those currently paying for insurance see their family, friends and neighbors getting health insurance via a federal subsidy.  I have no doubt that most will drop their current insurance and opt for a subsidized offer.  And why not?  Why pay full freight when you can get a discount?

Some companies recognize this potential effect and are replacing health care coverage with a direct health care payment that employees will use to buy their own insurance.  This will allow them to pursue a federally subsidized plan and get more for their buck or save some of the payment for other uses.

Needless to say this open ended commitment by the Feds, to subsidize health insurance for God knows how many, will grow like a mushroom and Obamacare will collapse under its own weight.  Of course this will throw our health care system into total chaos.  But hey, you have to break some eggs to make an omelet.