First, let’s point out that the law turned out to be unworkable, almost before it even got started. Dictating percentages for administration costs in insurance plans isn’t the job of the federal government anyway, but more to the point, that issue is obviously not determinative in value to the consumer — as these waivers proved. This shows what happens when people with no experience in an industry decide that they can construct it better than the market has structured itself.
The proper action would have been to repeal at least this portion of the law in order to give a level playing field to everyone. By granting a few dozen waivers at the outset, though, the White House has amplified the uncertainty and arbitrariness in ObamaCare even further. At least insurers and employers had a figure that they could use for planning. Now there is no standard at all, except for whatever Kathleen Sebelius decides she likes — and whom she wants to favor.
The Rule of Law depends on an environment with clear regulation and unbiased enforcement. From the start, ObamaCare lacked any clarity in regulation. Congress filled the bill with the phrase “The Secretary shall determine” in place of establishing rules and regulations for the massive regulatory regime Congress created. Now, the White House has added arbitrary enforcement to uncertain regulation and opaque processes. This is not the Rule of Law, but the Whim of Autocracy.
