President Barack Obama's announcement Thursday that he will allow health insurance companies to provide coverage that does not meet the Affordable Care Act’s new standards for one more year shows he is clueless about business, former U.S. ambassador John Bolton says.
"This shows the president doesn't have the slightest idea whatever how businesses work," Bolton told "The Steve Malzberg Show" on Newsmax TV.
"When insurance companies calculate insurance rates, they're based on masses of data, projections, life expectancies, disease rates. It's a very complex business. And they can't just change that on a dime," Bolton said.
"What the president's now seeing is that the fundamental premises of Obamacare don't work and he's scrambling day by day to avoid doing what really needs to be done which is to get rid of this thing root and branch and start over again."
He said the president's latest tweak of the healthcare law is just another example of the administration "just making things up" about law as it goes along.
"The requirements that are being played out now that are causing all this pain in the individual insurance market are required by the law and for the president to say, well I'm basically not going to enforce the law for a year, is really an insult to the entire constitutional system," he said.
"He's required, the Constitution says, the president must take care that the laws be faithfully executed. If the law isn't working, there's a way to change it and it's through Congress."
Bolton, now a senior fellow at the American Enterprise Institute, believes the president is being "purely motivated by politics."
"He knows he's got a problem on his hands, and this isn't going to work in any event because insurance companies, state regulatory commissions, and – get this now – the American people don't live their lives year-by-year," he said.
"They want a fix to this and even if you believed in this one-year deferral, it doesn't solve the fundamental problem with Obamacare itself."
With regards to the issue of ongoing talks between the United States and Iran to hammer out a deal on nuclear weapons disarmament, Bolton believes the Obama administration wants to keep handing over concessions.
"The Obama administration's policy on Iran, let's be very plain spoken about it, it is appeasement. They think that if they give Iran enough concessions in return for superficial concessions by Iran, that they can avoid an Israeli strike against the Iranian nuclear weapons program. That's what this is all about," he said.
"The administration, our administration, fears an Israeli strike in pre-emptive self-defense more than it fears an Iranian nuclear weapon. The government in Tehran is taking Obama to the cleaners. They understand that they don't have to perform very much to get what they want which is relief from the sanctions."
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