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Rule of Law or Rule of Favor?


The 2,700-page health care bill passed last March is filled with efforts to micromanage the health care system. And what the legislation doesn’t try to micromanage, it requires regulators at the Department of Health and Human Services (HHS) or the Centers for Medicare and Medicaid Services (CMS) or the IRS or some other bureaucrat to do it.

But at least now health care providers, employers, insurers and regulators know what’s required of them, and they can proceed accordingly, right? WRONG!

HHS has handed out one-year waivers to some 30 groups, with another 114 under review—so far. After reports that fast-food chain McDonald’s might have to cancel coverage for thousands of employees because the insurance didn’t meet federal standards, we learned that Mickey D’s was given a waiver through its insurer that covers 115,000 people.

The United Federation of Teachers Welfare Fund also got a waiver for 351,000 enrollees, according to news reports. Plus, many states and associations are asking for temporary waivers while they adjust to the law.

White House spokesman Robert Gibbs says, “The waivers are about insuring people and protecting the coverage they have until there are better options available to them in 2014.”

While a little flexibility is nice, what the administration is doing raises serious questions:
  • How do we know that the waivers aren’t granted for some political reasons, like being a big donor to Democrats or saying only nice things about the president? For example, does anyone believe the Chamber of Commerce, currently the White House’s Public Enemy No. 1, could get a waiver?
  • Could granting one company a waiver give it a competitive advantage over its rivals that don’t get a waiver?
  • Will banks also be able to ask for a temporary waiver from the financial bill?

And what about tax-related provisions? Could companies seek waivers from the new 1099 provision? How about from the tax on the “Cadillac”—i.e., expensive—health plans?

As bad as ObamaCare is, it’s the law—at least until it’s repealed—and this country is based on the rule of law … or at least it was. If lots of groups can get out of the law just for the asking, doesn’t that mean we’re now based on the rule of favor?