Thursday, April 29, 2010

Unintended Consequences

When Henry Waxman announced hearings to grill the CEOs of companies that were taking markdowns after the passage of Obamacare, my first reaction was one of outrage. A wise friend of mine had a different take. "Good," he said. "The CEOs and COOs will rip Waxman to shreds."

I realized he was right--those whose jobs depend upon getting the numbers right were much more qualified than any Congressman to decide what was correct accounting procedure for their companies.

My friend wasn't finished. "The hearings will be canceled," he predicted. "His staffers are freaking out right now because they know the CEOs are right and Waxman is wrong and they'll make him look like an idiot if he drags them to a hearing."

Again, he was right. The hearings were canceled (by this time I was sorry to hear it). And today there is an interesting blurb in The Daily Caller about those mysteriously canceled hearings. Waxman stated publicly that an investigation had revealed that the companies handled the write-downs properly. "But a new report from committee Republicans reveals the documents Waxman obtained included embarrassing evidence that the health-care law could drive up insurance premiums and force employers to dump employees from their health plans."

Remember how Obama promised (ad nauseam) that you wouldn't lose the coverage you had if you were happy with it? "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."

No comments:

Post a Comment