Friday, October 08, 2010

PR Problem 

Here is an interesting PR problem for the White House.  It is granting waivers to companies from the health care reform law to keep them offering health insurance to employees.  This goes along with large write-downs earlier in the year that corporations took because of the law.  It reinforces the perception that health care reform isn't working and is going to cost more than the administration said it would.  It also supports the cynics' view that no one knew what was in the law when they passed it and only now as companies work through the bill is anyone finding out. 

The White House can't afford to back away from the law too much because that will feed those who seek to repeal or unfund it.  On the other hand, it can't insist on strict application of the law when it will result in worse effects -- cancellation of health insurance for tens of thousands of employees.  One would think the White House would have seen this coming and would have prepared the public for it.  It doesn't appear to be the case.  Instead, news of the waivers are leaking out and making the President look bad.  It is not a comfortable position to be in.


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