Decision Dismissing Sarah Palin’s Libel Suit Is an Embarrassment to the Times

After a congressional baseball game in Alexandria, Virginia, was interrupted by gunfire on June 14, a New York Times editorial revived the much-debunked myth that a graphic created by Sarah Palin’s political action committee had something to do with the 2011 mass shooting in Tucson. Two weeks later, the former Alaska governor and Republican vice presidential candidate sued the Times for defamation, and yesterday a federal judge dismissed the case.

Although correct as a matter of law, the decision should not be interpreted as a vindication of the Times. To the contrary, the details described in U.S. District Judge Jed Rakoff’s ruling highlight the journalistic malpractice, magical thinking, and blinkered tribalism that led to this stupid and embarrassing mistake.

The editorial, “America’s Lethal Politics,” used a violent attack on Republicans as a pretext to remind us how awful they are:

Was this attack [on Republicans at the baseball game] evidence of how vicious American politics has become? Probably. In 2011, when Jared Lee Loughner opened fire in a supermarket parking lot, grievously wounding Representative Gabby Giffords and killing six people, including a 9-year-old girl, the link to political incitement was clear. Before the shooting, Sarah Palin’s political action committee [SarahPAC] circulated a map of targeted electoral districts that put Ms. Giffords and 19 other Democrats under stylized cross hairs.

Conservatives and right-wing media were quick on Wednesday to demand forceful condemnation of hate speech and crimes by anti-Trump liberals. They’ re right. Though there’s no sign of incitement as direct as in the Giffords attack, liberals should of course hold themselves to the same standard of decency that they ask of the right.

The Times thus managed to feign evenhandedness even while suggesting that right-wing rhetoric is more vicious than left-wing rhetoric and more clearly implicated in violence. But as the paper admitted in a correction published the next day, it was all nonsense:

An editorial on Thursday about the shooting of Representative Steve Scalise incorrectly stated that a link existed between political rhetoric and the 2011 shooting of Representative Gabby Giffords. In fact, no such link was established. The editorial also incorrectly described a map distributed by a political action committee before that shooting. It depicted electoral districts, not individual Democratic lawmakers, beneath stylized crosshairs.

Although the editorial was inaccurate and reflected negatively on Palin, Rakoff concludes that she failed to allege facts sufficient to show that it was a product of “actual malice,” the standard that applies in defamation cases involving public figures. Actual malice means the person responsible for a defamatory statement—in this case, James Bennet, the paper’s editorial page editor—knew it was false or published it with “reckless disregard” as to its accuracy. In Rakoff’s view, Bennet was in a rush and screwed up, which does not mean he knew or suspected that what he said was wrong.

“What we have here,” Rakoff writes, “is an editorial, written and rewritten rapidly in order to voice an opinion on an immediate event of importance, in which are included a few factual inaccuracies somewhat pertaining to Mrs. Palin that are very rapidly corrected. Negligence this may be; but defamation of a public figure it plainly is not.”

I think that assessment is basically right, but the direction of Bennet’s negligence is telling. It seems unlikely that he would have been so quick to repeat a baseless accusation linking a Democrat to mass murder.

The purported connection between Palin and the Tucson attack was something that stuck in Bennet’s mind, even though it had been repeatedly debunked in the pages of his own newspaper and in The Atlantic, which he used to edit. It stuck in his mind even though it was contradicted by the ABC News article to which the editorial linked, a fact that undermines Palin’s case even while it underlines Bennet’s carelessness. It stuck in his mind because he wanted to believe it, and he wanted to believe it because it was consistent with his preconceptions about nasty right-wingers.

At a hearing that Rakoff convened to clarify how the editorial had been produced, Bennet testified that he instructed Elizabeth Williamson, the editorial writer who composed the first draft, to look up the commentary that the Times had published after the Tucson shooting. Apparently he remembered that attack as motivated by right-wing ideology or hostility toward liberal Democrats, even though there was never any evidence that it was.

Bennet testified that he does not recall reading any of the articles contradicting that notion in the Times, The Atlantic, or anywhere else. Nor did he bother to read the articles he told Williamson to read, which included a column that said “Loughner was likely insane, with no coherent ideological agenda” and a Times editorial that said “it is facile and mistaken to attribute this particular madman’s act directly to Republicans or Tea Party members.” Bennet did not even dip into the ABC News article that the editorial cited, which noted that “no connection has been made between [the SarahPAC Map] and the Arizona shooting.”

Bennet’s ignorance on the subject did not stop him from reinforcing the nonexistent link between Palin and Loughner when he rewrote the editorial. Williamson’s draft claimed the Tucson and Alexandria attacks both were motivated by “rage” that was “nurtured in a vile political climate,” and it mentioned criticism of the SarahPAC map. Bennet’s version said “the link to political incitement was clear” and “direct,” citing the map and its banal imagery as evidence.

Bennet testified that he was surprised to hear readers had interpreted what he wrote to mean that Sarah Palin had blood on her hands. He insisted he “did not intend to imply a causal link” between the map and the Tucson shooting, which is hard to believe. By contrast, it is easy to believe that Bennet was disinclined to take even a cursory look at the empirical basis for his assertion that “political incitement” moved Loughner to murder. As far as he was concerned, that was a well-known fact.

Promoting baseless claims because they are ideologically convenient and make your enemies look bad may not be defamation. But neither is it good, or even mediocre, journalism. The best that can be said in Bennet’s defense is that, like Donald Trump, he sincerely believed the nonsense he peddled.

from Hit & Run http://ift.tt/2xyWank
via IFTTT

Trump Pitches Tax Reform, Missile Defense Test in Hawaii, Search for Intelligent Life in Berkeley: P.M. Links

  • President Trump delivered remarks on tax code reform aimed at “Main Street.”
  • The U.S. conducted a missile defense test off the coast of Hawaii.
  • Philadelphia became the latest city to sue the Department of Justice over its sanctuary city policies.
  • The FBI denied a freedom of information request for files related to the Hillary Clinton investigation, arguing there was a lack of public interest.
  • The death toll from a series of mudslides and floods in Sierra Leone has doubled, to more than 1,000.
  • The NFL has canceled Thursday’s pre-season game between the Cowboys and Texans, which was scheduled to be played in hurricane-stricken Houston.
  • A program to find intelligent life in Berkeley has reportedly recorded 15 high-energy radio bursts from a distant galaxy.

Follow us on Facebook and Twitter, and don’t forget to sign up for Reason’s daily updates for more content.

from Hit & Run http://ift.tt/2wjyRQd
via IFTTT

Arkema CEO: “No Way To Prevent Imminent Explosion” At Flooded Texas Chemical Plant

Yesterday we reported, that in a potentially disastrous outcome from the Harvey flooding, a chemical plant in Crosby, Texas belonging to French industrial giant Arkema SA, has announced it is evacuating workers due to the risk of an explosion, after Tropical Storm Harvey knocked out power and flooding swamped its backup generators. The French company said the situation at the plant “has become serious” and said that it is working with the Department of Homeland Security and the State of Texas to set up a command post in a suitable location near our site.

The plant, which produces explosive organic peroxides and ammonia, was hit by more than 40 inches of rain and has been heavily flooded, running without electricity since Sunday. The plant was closed since Friday but has had a skeleton staff of about a dozen in place. Following the flood surge, the plant’s back-up generators also failed. The threat emerged once the company could no longer maintain refrigeration for chemicals located on site, which have to be stored at low temperatures. The plant lost cooling when backup generators were flooded and then workers transferred products from the warehouses into diesel-powered refrigerated containers.

On Tuesday afternoon, the company released a statement which admitted that “refrigeration on some of our back-up product storage containers has been compromised due to extremely high water, which is unprecedented in the Crosby area.  We are monitoring the temperature of each refrigeration container remotely.” It then warned that “while we do not believe there is any imminent danger, the potential for a chemical reaction leading to a fire and/or explosion within the site confines is real.”

One day later, and with the torrential rains finally over, has the situation at the giant peroxide chemical plant stabilized? Unfortunately, according to Reuters, the answer is no.

Speaking to reporters on Wednesday afternoon, Richard Rowe, the chief executive of Arkema’s American operations said that “the company has no way of preventing chemicals from catching fire or exploding at its heavily flooded plant.” Rowe added that the company now expects chemicals on site to catch fire or explode within the next six days. Since the plant remains flooded by about six feet of water, “the company has no way to prevent” this worst-case outcome.

Anticipating the worst, the company earlier evacuated all remaining workers, while Harris County ordered the evacuation of residents in a 1.5-mile radius of the plant that makes organic chemicals.

Previously, Arkema said that it was working with Homeland Security and the state of Texas to set up a command post near the site. As we reported on Tuesday, Rep. Ted Poe, a Texas Republican, wrote on Twitter that the Crosby plant “is in danger of fire/explosion. The local area is being evacuated. Stay out of area.”

Previously Reuters added that other chemical plants have also shuttered production in Texas because of the hurricane, however none are in such a precarious state. These include Anglo-Swiss chemicals firm Ineos Group Holdings, which said it has been forced to shut down facilities in Texas. Chocolate Bayou Works and Battleground Manufacturing Complex, and INEOS Nitriles’ Green Lake facility are following hurricane procedures and are temporarily shut down, spokesman Charles Saunders said. Huntsman Corp said it has closed six chemical plants in Texas, along with its global headquarters and advanced technology center in Texas.

via http://ift.tt/2wTRr2u Tyler Durden

Armed Antifa Group Declares “Everywhere a Battlefield”

Courtesy FarLeftWatch.com

The Austin based ‘Anti-fascist’ group, Red Guards Austin, has been gaining prominence in the Texas Antifa movement. As we have previously reported, they are a self described autonomous Marxist-Leninist-Maoist collective and their website contains multiple reports on their confrontational and often armed demonstrations.

They also openly advocate for violent revolution against capitalism.

“we must seriously take up the task not only of self-defense on the personal and community level, but we must also struggle to unite all genuine antifascists behind the necessity of revolution.  Revolution means the long fight for communism and nothing less.”

In a recent blog titled “Everywhere a Battlefield“, this trend continues as they claim “The war is not coming—it is here and now” and then discuss the need for weapons training and more “revolutionary violence”.

FB page

The war is not coming—it is here and now. We must take our historic task seriously. We must accumulate forces and steel them in small-scale street battles. We must respond accordingly to the apocalyptic reality that capitalism-imperialism has forced on us.” 

 

“So what does self-defense mean for the rest of us? What does it mean for enemies of the state? It can only mean that we must develop red physical culture. It means that we must contend for ground that has been ceded to the enemy. That we train in both hand-to-hand combat and in weapons. We must take community self-defense seriously. We must walk away from the comfort zone of the legal left, and by extension it means that those who protect them are sure to attack us. It means that we return to our filthy neighborhoods of cramped apartment complexes and organize right there among our class. It means that we choose the field of combat thoughtfully and not out of uninventive and timid habit. We cannot expect a mass antifascist movement to develop its necessarily revolutionary character unless we move away from the state-ordained protest zones. 

 

Reclaiming violence means making revolutionary violence available to be utilized by all types of comrades at all levels and all abilities. It means training physically in flexible ways applied to the specific conditions of specific groups. Everyone, regardless of ability, can improve. This is not to do away all at once with the division of violent labor; the science of revolutionary violence is universal, and it must at the same time be applied with great care to the specific. In this process of trial and error we sharpen and broaden our skillsets. Martial arts, firearms, and sports must be seen as cultural battlefields as well as invaluable tools in our revolutionary toolkit.”

For months, militant antifa groups have been engaging in targeted political violence. They claim they exist to fight racists, bigots, and white supremacists; and their allies in the media often echo these claims. But if the actions from the Red Guards Austin is any indication, this is nothing more than a public relations campaign to recruit moderates. Their end goal is communism, a political ideology responsible for over 94 million deaths in the 20th century.

The mission of Far Left Watch is to investigate, expose, and combat far left extremism. Please share this article via Twitter, Facebook, etc. and encourage friendly media and YouTube content creators to report on this information.

If you have any tips on far left activities please submit them here.

If you appreciate the work we do, please consider donating to our Patreon account.

via http://ift.tt/2x6nWKb ZeroPointNow

Seattle Ballot Initiative Would Block Safe Drug Injection Centers

Drug injectionLeaders in Seattle and King County are pushing forward with plans to open two sites where drug addicts may shoot up safely, but local voters are going to get the chance to block it.

At the start of the year, Seattle’s mayor and King County’s executive announced they were going to build two safe-consumption facilities, based on recommendations from a local task force. The goal is to reduce the likelihood of heroin and opioid overdoses by giving addicts a place to shoot up (that’s also out of public view) that is monitored for safety. The model they’re pursuing is similar to a facility that has been operating for years in Vancouver.

Like many other communities in the United States, King County is seeing a surge in drug overdose deaths: 332 for 2016. They’ve seen increases in drug overdose deaths every year for the past seven years.

But there are some who think reducing the possibility of harm through with an injection facility endorses drug decriminalization and even legalization. So opponents of the facility have gathered signatures in order to force a vote. From the Seattle Times:

Opponents of safe-injection sites argue they amount to the government condoning heroin injection. State Sen. Mark Miloscia, R-Federal Way, a leading critic, has said the sites are a step toward legalization and decriminalization.

“We are losing control when we’re de-stigmatizing these dangerous drugs,” Miloscia said earlier this year. “We need to teach our children and promote not taking these dangerous drugs and stigmatize people who get hooked on drugs to get into treatment.”

Initiative 27 would ban any public expenditures to create a supervised drug consumption site. It also makes it a civil violation with fines of up to $5,000 for any private organization to operate a facility to supervise the consumption of any federally prohibited drug, except for marijuana.

So to be clear, this is not just about keeping the government from spending taxpayer money to subsidize addiction. The libertarian-minded private solution to reduce the potential harms of drug addiction would also be forbidden.

Unfortunately, what we’ve been left with is the typical drug war mentality of hitting drug addicts and dealers with harsher criminal penalties and mandatory minimums. Rather than investing in tools and mechanisms to prevent drug overdoses, we increasingly see communities attempting to prosecute the people who provided these drugs with homicide instead. So instead of fewer dead people, you get dead people and somebody sentenced to decades or life in prison.

The initiative has been scheduled to appear on a ballot in February. But a public health group has just recently filed a lawsuit attempting to block it from a public vote.

from Hit & Run http://ift.tt/2vKkdOm
via IFTTT

Korean Missiles, Killer Storm, & Kuroda Spark Biggest Buying-Panic In Tech Stocks Since Election

For today's stock market recap, see yesterday!

 

In a comedic case of deja vu, somebody flicked the "DUMP VIX, BUY NASDAQ" swicth at exactly the moment US equity markets opened…

 

The Dow fell back into the red into the close and there was some selling pressure ahead of tomorrow's month-end, but still, everything but The Dow just went straight up…

 

On a bed of momentum ignited by Kuroda and his magical USDJPY levitation…

 

With FANG stocks and Biotechs…

Pushing Nasdaq up almost 3% from yesterday's lows – the biggest swing higher since the election last year (Nov 10th)

On the week, it's pretty clear where the malarkey is (NOTE the selling as Europe opens and panic-buying as US opens)

 

Nasdaq and The Dow managed to get back into the green for August (which seemed to be critical for the machines), but the S&P remains down 0.5% still…

 

Spot The Odd One Out…

 

The S&P closed above its 50DMA…

 

Treasury yields went absolutely nowhere today – trading in an incredibley narrow range!

 

The Dollar index extended yesterday's gains, erasing the post-Yellen J-Hole losses…

 

USDJPY (cough Kuroda cough) has just exploded since yesterday's open…Someone was willing to pile in to every dip for 2 big figures straight up..

 

 

WTI fell further as RBOB rallied but the afternoon saw volatility in the energy complex amid headlines on refiners restarting…

 

Gold and Silver drifted modestly lower on the day…

via http://ift.tt/2xyILMe Tyler Durden

When Systemic Uncertainty Meets Fragility – “Then The Whole Contraption Collapses In A Heap…”

Authored by Charles Hugh Smith via OfTwoMinds blog,

That's the problem with fragility: everything looks fine on the surface until a crisis applies pressure. Then the whole rickety contraption collapses in a heap..

Life is inherently uncertain, but systems that were once considered certainties have increasingly become uncertain. Social Security is one example; recent polls reflect widespread doubts among Millennials and Gen-Xers that there will be any Social Security benefits left for them by the time they reach retirement age.

This doubt is fact-based; as the number of retirees swells, as Medicare costs soar ever higher and the number of full-time jobs paying into Social Security/ Medicare stagnates, these pay-as-you-go programs break down; Social Security is already paying out billions more than it collects from employers and employees.

Uncertainty is one thing, fragility is another. The socio-economic systems we rely on are also becoming increasingly fragile and prone to failure, for an entirely different set of reasons than those driving uncertainty.

Changing fundamentals drive uncertainty. The nation's demographics and stagnant wages for the bottom 95% are extremely unfavorable for pay-as-you-go programs like Social Security and Medicare; their future is uncertain because the inputs and outputs are changing.

Fragility is a function of systems being thinned by cronyism, self-serving insiders, fraud, lack of transparency, lack of competition, monopolies, profiteering and a decline of quality. Systems that become too costly due to the above dynamics are hollowed out as everyone seeks some way to reduce the costs. Redundancies are stripped out, staff is slashed to the bone, senior managers with the most experience are pushed out to lower payroll costs, quality control is whacked, and inferior inputs are presented as equal to the higher quality inputs that they replace.

When these weakened systems are under pressure or face a crisis, they crumble. Shoddy materials fail, inexperienced managers make hasty, ill-informed decisions, the barebones staff is overwhelmed, equipment that wasn't properly maintained to save money breaks down, and so on.

We're assured by financial authorities and the media that our banking system is now monstrously resilient and robust, and it is impervious to financial crisis. You're kidding, right? So when all the subprime auto loans go bust, and all the overleveraged commercial real estate loans go bust, and all the developing-world debt in U.S. dollars goes into default, and all the consumer debt issued to marginal borrowers goes bust, the hundreds of billions in losses are all going to be absorbed, no problem.

This is fragility writ large. You can bet the entire financial sector is making the same faulty, fragility-creating assumptions as a means of maximizing profits: only one auto loan in a hundred will go into default, near-zero commercial real estate loans will blow up, every dollar-denominated loan in the developing world will be paid in full, blah blah blah.

In other words, if we assume FantasyLand perfection of marginal borrowers–that once a global recession guts their opportunities to refinance and the income needed to service their loans, they will still magically make all payments in full and on time–the financial system is resilient.

Beneath the reassurances, the system is increasingly fragile because all the resilience has been stripped out of it to maximize profits in the current quarter. And as for the financial authorities–who believes the financial sector is serving the interests of the bottom 99.5%? Based on what evidence? Who believes the mainstream media is reporting the deteriorating fundamentals and the increasing fragility of our society's core systems?

All we need is a few overlapping crises to reveal the structural fragility and lack of trust/certainty in our core systems. Profiteering, cronyism, self-serving insiders, a decline in quality, gaming the system, fraud, opacity, propaganda, and the erosion of competence all seem like good clean fun when the weather is calm and the sun in shining. But the true nature of our systemic failure will only be revealed when multiple storms arise and the system is pushed to the limit.

That's the problem with fragility: everything looks fine on the surface until a crisis applies pressure. Then the whole rickety contraption collapses in a heap.

via http://ift.tt/2x6gFKG Tyler Durden

Proposed Free Community College in Seattle Will be Anything But

Student with moneyNo candidate ever lost an election by promising voters too much free stuff, something Seattle mayoral candidate Jenny Durkan is banking on with her proposal for tuition-free community college.

Durkan—a former U.S. Attorney and one of two candidates competing for Seattle’s November mayoral elections—unveiled her “Promise Seattle” program Monday. The proposal actually included two remarkble promises: two years of free community college for any Seattle high school graduate at no additional cost to taxpayers.

Durkan says her goal is to get more low-income and minority students into post-secondary education. “We need to ensure students from all economic backgrounds, and from every neighborhood in Seattle, have the chance to earn a credential, certificate or degree.”

Free community college is becoming a popular promise among members of a certain political class. Four states having passed such schemes: Tennessee was the first in 2014; Oregon followed the next year. Rhode Island and New York passed community college giveaways in 2017, but have yet to implement them.

If these examples hold true, the benefits of Promise Seattle will accrue mostly to the city’s wealthiest students, while proving to be anything but “free.”

That’s because promise programs offer tuition on a “last dollar” basis, meaning their subsidies don’t begin to flow until after students have collected the federal and state aid for which they’re eligible. State and federal aid programs already cover most of the cost of attending a community college for low-income students. Their wealthier counterparts are the real beneficiaries.

Promise Oregon is a case-in-point.

According to a 2016 review by the Oregon Higher Education Coordinating Commission, students whose family income qualifies them for full federal and state grants would get $284 in Promise tuition assistance per term. Students whose family incomes disqualify them from state and federal aid get $1,084 per term.

The same report found that the Promise Oregon spent only 7.9 percent ($860,000) of its funding on students expecting no assistance from their families. Meanwhile, 60 percent of Promise Oregon funds ($6.6 million) went to those students who’re expected to receive over $8,673 in yearly family support—much more than the average tuition cost for an Oregon community college.

Fifty three percent of Promise Oregon recipients were wealthy enough to be disqualified for federal Pell grants. The number is 47 percent for Tennessee’s Promise Scholarships. Expect Durkan’s proposal to follow the same pattern.

Durkan’s suggestion that the program could be run without tax increases is also questionable. Her outline suggests the program could be funded by revenue from a couple of Seattle’s other recent bad ideas, including its soda tax and fees from the $54 billion ST3 light rail expansion.

That could be enough, but only if the free tuition project stays within the suggested budget caps, something other Promise programs have failed to do.

Spending on Promise Oregon has escalated, from $10 million for the 2016-2017 academic year to $40 million for 2017-2018. Even with that four-fold boost in funding, the program is still $8 million short of covering all applicants, requiring the Oregon legislature to at last means-test the program.

While the evidence suggests nothing Durkan is promising is really free, it also suggests that hasn’t stopped taxpayers from believing in and voting for it.

from Hit & Run http://ift.tt/2wJrq5I
via IFTTT

El-Erian: Why Gold Is Less Of A Haven These Days

Authored by Mohamed El-Erian via Bloomberg.com, 

Its status has been eroded by unconventional monetary policy and cryptocurrencies.

Having waited patiently for the “any-minute-now” moment, gold investors are taking comfort from the recent rise in price in response to geopolitical tensions. Yet the responsiveness of gold, as well as the overall price, appears weaker than would have been expected from historically based models — and for understandable reasons. The precious metal’s status as a haven has been eroded by the influence of unconventional monetary policy and the growth of markets for cryptocurrencies.

Gold prices rose almost 1 percent on Tuesday morning as part of the risk aversion triggered by yet another brazen North Korean missile launch over Japan, together with uncertainty as to how the U.S. may respond. But trading below $1,330, the overall response of gold prices to the last few months of heightened geopolitical risks has been relatively muted, particularly as the 10-year Treasury bond, another traditional haven, saw its yield trade down to below 2.10 percent that same morning.

Two immediate reasons come to mind, one related to several assets and the other more specifically to gold.

First, and as I have discussed in several Bloomberg View articles, the prolonged pursuit of unconventional measures by central banks has helped meaningfully decouple asset prices from underlying fundamentals. In such circumstances, historically based models will tend to overestimate the reaction of asset prices to heightened geopolitical tensions — including the fall in risk assets such as equities, or the rise in gold.

 

Second, a portion of the traditional buyer interest in gold has been diverted to the growing markets for cryptocurrencies, which are also benefiting from a general increase in demand. As such, the returns to investors there have been significantly greater, sucking in even more funds.

The message for investors in both gold and multi-asset-class portfolios is clear.

While continuing to play a role in diversified market exposures, gold is less of a risk mitigator and asset-class diversifier, for now.

Luckily for investors, the need has also been less pronounced, given that ample market liquidity has boosted returns, repressed volatility, and distorted correlations in their favor.

But this is not to say that gold’s traditional role will not be re-established down the road. After all, central banks are in the later stages of reliance on unconventional monetary measures and, given this year’s spectacular price appreciation, cryptocurrencies are more vulnerable to unsettling air pockets.

via http://ift.tt/2grF7jc Tyler Durden

Obamacare Remains Unstable, Even as Insurers Fill Bare Counties

At the beginning of the summer, as congressional Republicans were pushing to pass health care legislation, it looked as if, in some places, a major component of Obamacare might simply cease to exist, all on its own.

More than 40 counties across the country appeared likely to have no insurer available in the health law’s exchanges. Major news organizations published reports warning that, after insurers made their final decisions, hundreds of counties could ultimately be left bare under the law.

Instead, the opposite has happened.

All of the counties that were expected to be bare now have at least one participating insurer. The Republican effort to rewrite the health care law has stalled indefinitely, and may never be revived. A new government report published today finds that health insurance coverage has increased nationally this year by about 500,000 people. Obamacare, which languished in the polls throughout President Obama’s time in office, is now more popular than ever.

Yet all is not entirely well with the law. Although there are no bare counties, major health insurance companies like Aetna and UnitedHealth have pulled out of the program, and 47 percent of counties, covering about 23 percent of health law enrollees, will have just one option in the exchange.

This is hardly the boon for consumer choice that President Obama promised back in 2009, when he declared, in a speech making the case for health care reform, “My guiding principle is, and always has been, that consumers do better when there is choice and competition. That’s how the market works. Unfortunately, in 34 states, 75 percent of the insurance market is controlled by five or fewer companies. In Alabama, almost 90 percent is controlled by just one company. And without competition, the price of insurance goes up and quality goes down.”

Under Obamacare, dramatic price increases are exactly what’s happening. In Maryland, for example, a state that has generally favored the law, exchange premiums will jump an average of 33 percent. And that hike is lower than what insurers requested: State insurance regulators negotiated carriers down from initial requests for rate increases averaging 43 percent.

Although the majority of the people covered under Obamacare will be relatively insulated from those hikes thanks to the law’s insurance subsidies, that just means that taxpayers will shoulder the additional cost. And those who earn too much income to qualify for subsidies will be stuck with substantially higher bills, yet again. So it’s no surprise that they are fleeing: The market for unsubsidized coverage shrank 29 percent in the last year, according to insurance industry consultant Bob Laszewski.

Among the insurers that has stepped in to fill many of the counties that were expected to be bare is Centene, which built its business on Medicaid managed care, in which insurers take over caseloads from states. Centene has been more successful than other companies in Obamacare’s exchanges, in part by relying on narrow provider networks. Under these sorts of plans, coverage through Obamacare looks more like coverage through Medicaid than what most people expect from private insurance.

Even the bare county problem, meanwhile, may be merely delayed rather than solved. In Ohio, which earlier this year expected to have 20 counties with no insurer, the state’s Department of Insurance Director, Jillian Froment said, “This is a temporary solution and one that only applies to 2018. Beyond that, insurers are still looking for predictability in the health insurance market.”

Predictability, in this case, may turn out to mean “stabilization funds“—or, less generously, publicly funded bailouts. The future of the health care law looks less like total collapse and more like consistent unsteadiness and worries about decline, while lawmakers attempt to prop it up on a nominally temporary basis.

The health care law may have avoided repeal, or any of the not-quite-repeal options that congressional Republicans considered. And it may have plugged the holes in the insurance market, at least for now. But it has hardly settled into a stable equilibrium, and the ways in which it is unstable and inadequate are unlikely to improve rapidly on their own. Obamacare may not be failing. But in many ways, it is flailing.

from Hit & Run http://ift.tt/2gpV0GK
via IFTTT