Why ObamaCare is Not Socialism

Is ObamaCare Socialism or Socialized Healthcare?

ObamaCare isn’t “socialism“. Under ObamaCare we have a regulated private health care industry that uses a mix of public and private funding. This is best described as a “quasi-private” healthcare system, or more technically, “a quasi-private, regulated, free-market-based insurance and delivery system, that uses subsidization, regulation, and taxation (sort of a mash-up of capitalism, socialism, and corporatism)”.

This is different than the more common single payer system other countries use, or the more market-based system we used in America before Medicare and Medicaid were created by LBJ’s Social Security Amendments of 1965.

The main problem with boiling down American healthcare reform under the PPACA to buzzwords is that terms like socialism only broadly define a philosophical economic/political theory. American politics is much more complicated than this. Below we separate the facts from the myths, and the rhetoric from reality.

The term “socialized medicine” has been thrown around for over a century, typically used by opponents of healthcare reform as a way of scaring people into standing against healthcare reform.

FACT: ObamaCare, like everything we do in America, is a mix of “center left” or “center right” ideas. Those ideas create a uniquely American version of regulated free-market capitalism that aims to create profits for corporations and people, while ensuring access to healthcare.
FACT: Funnily enough, insurance is itself is a group fund (which is pretty “socialist”), be it for profit or not. With that said, the trillions made off the healthcare system for private companies doesn’t exactly scream socialism the philosophy or socialism as presented by the media.

Myth: ObamaCare is Socialism

Socialism is a political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole. ObamaCare is a law that regulates key parts of the same quasi-private and regulated healthcare system we had before the law was passed.

Under ObamaCare we have a regulated private health care industry with a mix of public and private funding. This is best described as a “quasi-private” healthcare system.

A pure “socialist” healthcare system would have total public funding and care (or would at least regulate every aspect of funding and care).

Even a single payer system isn’t “socialist” because single payer denotes public funding, not public delivery. In other words not only is the current system not “socialist”, but nothing we have ever really discussed in America, including the more left leaning single payer, is socialist.

Want to learn more about what Socialism actually is? (NOTE: it’s about as far from a talking point as possible, enter the rabbit hole of political theory at your own risk.)

Insurance is Kind of Socialist In the First Place

The truth is insurance is “a collective group fund that mitigates individual risk” in the first place. This means insurance, be it private or publicly funded, is probably the most socialist thing about American healthcare. You could argue that using tax payer funded subsidies or regulations on private industry is “socialist”, but it would be much easier to simply argue that this is just part of our American brand of regulated capitalism.

What people tend to confuse socialism with communism: the idea that everyone is equal on every level and those who work harder shouldn’t be rewarded with “more”. In truth, socialism and communism are distinctly different.

We shouldn’t lose sight of the idea that insurance is a group fund in the first place. No matter how you run that fund, it’s still a single group fund.

Socialism Versus Communism

People often confuse socialism with communism. Communism is more of what we don’t like in America, and what we don’t want. Communism is a collective ownership of everything, with complete government control, and the absence of social classes, states, and money.

Socialism on the other had is a range of economic and social systems characterized by social ownership and democratic control of the means of production. If we apply socialism to healthcare we get single payer (public fund, regulated private care), if we apply communism we would likely get state controlled fund and healthcare delivery system. This is the gist, they are two different things, socialism-lite has a proven track record with common goods like healthcare in other countries, communism has zero success stories so far throughout history.

To make life simple we won’t get into the philosophical ideas behind communism or the different types of communism, but rather just point out that in practice communism has been historically used to create an oligarchical system that was unlike anything we want for our American democracy. Meanwhile socialism, when applied to healthcare, is something most of the other western countries have already implemented without sacrificing their democracy or markets.

Suffice to say, communism is sort of like a radical socialism, and is pretty much the opposite of capitalism. If America is about a balance of powers then neither total free-market or communism should be on the table, but democratic socialism could be.

Right wing-ers in America like to bunch communism and socialism into the same group to attack different political views, but the truth is our brand of governing really just borrows ideas from all over the place to create something uniquely American. If it has a bunch of hyphens in it, like mixed-market-quasi-public funding and delivery, then its a good sign we are on the right track.

Witch hunts are never cool. The more we split apart, the less we focus on the united factor of being American. The truth is rhetoric can be dangerous, this video shows just how dangerous rhetoric and fear can be.

Socialism Versus a Regulated Free-Market

Socialism is a philosophy, a regulated free-market is a completely different idea (and is something that is actually happening in America). A regulated free market is different than socialism because the primary goal is a free market and government (officials elected by the people, in America at least) only regulates when deemed necessary. Important things like money, climate, healthcare, labor laws, discrimination laws, etc are regulated and the rest is left to the free market. Socialism suggests that all things are regulated and controlled by the government and little to nothing is left to the free-market.

Because socialism can go “overboard” if left unchecked, when we discuss it in America we typically discuss it only for the common good (healthcare, education, etc) and then mix it with capitalism. So we could call something like this “Democratic socialism”. The idea that markets, democracy, and strong social programs can all co-exist side-by-side.

Ideally We the People Create Rules to Protect We the People

Ideological labels aside, the point of the Affordable Care Act (and most other like-minded laws) is to regulate private business to protect the majority.

Who wants to play a game without rules? Who wants to play a game where there are no winners? Not anyone we know. America is about nuanced solutions, not extremes. Just because we do something together as a society, doesn’t mean it’s “socialism”… especially when related to healthcare, education, and climate. These things affect all of us and all our families.

It can actually feel good to take on a little extra responsibility to know that 1 in 10 (ish) people you meet on the street now have access to affordable coverage for the first time.

Socialism Is Mostly Just Used as a Buzzword to Turn People Against any Progressive Idea

In the US “socialism” has been used as a buzz word by the right for at least 100 years now. The idea has been purposely lumped in with communism and turned into a dirty word in order to turn people away from any idea that leans to the left like Medicare, Medicaid, Unions, labor laws, ObamaCare, etc. Don’t confuse scary buzzwords with being a good person and taking care of your neighbor. And don’t jump on the “use socialism as a dirty word” band wagon without looking at the damage this term has done throughout US history. Remember it wasn’t long ago we were blacklisting “communists” based on fear over fact.

Myth: ObamaCare Subsidies are a Handout to Lazy people that Don’t Work

Marketplace subsides only help those with incomes between 100% and 400% of the Federal Poverty Level. To have an income of 100% of the poverty level means your family works hard, contributes to society, and could probably use the extra help. Often people can find someone even in their own family who qualifies for cost assistance programs based on income, often someone you have respect for and don’t have the personal money laying around to take care of yourself.

Persons in
2014 Federal
Poverty Level
100% FPL
138% FPL
CSR* &
Premium Cap
150% FPL
250% FPL
400% FPL
1 $11,670 $16,105 $17,505 $29,175 $46,680
2 $15,730 $21,707 $23,595 $39,325 $62,920
3 $19,790 $27,310 $29,685 $49,475 $79,160
4 $23,850 $32,913 $35,775 $59,625 $95,400
5 $27,910 $38,516 $41,865 $69,775 $111,640
6 $31,970 $44,119 $47,955 $79,925 $127,880
7 $36,030 $49,721 $54,045 $90,075 $144,120
8 $40,090 $55,324 $60,135 $100,225 $160,360
*Medicaid eligibility is different in states that did not expand Medicaid.
Federal Poverty Guidelines are different in Hawaii and Alaska.
*CSR Cost Sharing Reduction subsidy
*PTC or Premium Tax Credits

Also remember, subsidies are based on what you make in that year… not your lifetime. That means that you can do really well, and then need help ten years later because you got hurt or got laid off in a bad economy. The safety net helps people bounce back, the idea isn’t a net you throw over someone to keep them down, it’s supposed to catch them when they fall so they can get back up.

In Conclusion

We could probably go on about why smart and fair rule sets are a good idea for anything from Dungeons and Dragons, to the economy, to football, to healthcare but really all we want to point out is that 1) the Affordable Care Act isn’t “socialism” and 2) the term “socialism” has been used to split our society part into warring factions for over a century and 3) “socialism” probably isn’t what you think it is in the first place.

Don’t get caught up in the rhetoric, flip your mental script and start looking at what the ACA gets right. If we come together as a people we can make a difference and ensure we are all participating in the conversation about how to do a better job at our American brand of quasi-capitalism. The more we get distracted, the more politicians pander, and the less reals solutions we see brought to the table.

At the end of the day if we call everything that favors people or uses regulations or taxes “socialist” we are going to have a long road ahead of us. Stay educated, stay away from talking points, and take a refresher on what the Affordable Care Act actually does and what other programs like single payer really would mean for America.

Author: Thomas DeMichele

Thomas DeMichele is the head writer and founder of ObamaCareFacts.com, FactsOnMedicare.com, and other websites. He has been in the health insurance and healthcare information field since 2012. ObamaCareFacts.com is a...

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As you can see w/ the Govt actions in 202. Dems have gone nuts trying to make America A Socialist Country. Obama Care is a step towards Socialism. when the Govt. has it’s nose in every aspect of peoples lives.
Try Medicare, it’s the worst. I am Blind due to Stargdarts Disease & Medicare because they don’t cover vision. No Dental.
Doctors won’t accept Medicare Patients. Now of their doctors feel you should take a medication so they can fill the contract of scripts of medication that they have over stocked, even tho you dont have, lets say high chlorestoral, if you don’t take it anyway you loose your Medicare. Giving the Govt, full decision making over your Medical needs & ability to influence or black mail you & your Doctor both, not to mention their Doctors, do what they tell them to do, gives them full control to eliminate you. For fathers said keep the Govt. small & you & the state you live in make decisions, on education, health care, just about every 3 letter Govt. agency should be a State agency , not a Federal one. Big Govt leads to Socialism, then Communism.
That is the plan right now the Demoncrats, Rothschild’s Illuminati Cabel, w/ the Jesuits, & the Zionist together, started their evil plan when they created in every country Fed.Reserve to enslave us & the world. Then they plan to bring in the Anti-Christ via the Vatican….New World Order, Agenda 21-30. All you have to do to see the truth is type it in the search box…Then read it.So to ****with Obama care. My deductible was 3,500.00 my SSDI was 860.00, it’s cheaper to pay the tax fine, which is illegal for, Medical is not taxed it’s against the Constitution, but so was Obama., he was against Christianity too. BAD BAD Usurper. Vote Trump & keep America a Constitutional Republic…We are not a democracy, we have a Democracy election system,look that up while your reading.


This article is dead wrong and has been proven so. Obama Care is the the epitome of socialist healthcare system that is failing.


Autocratic Redistribution of Income. I call that Socialism.




Wow, this whole site is nothing more than pro Obama rhetoric. One has to wonder why a page like this is here if he is so honest. Why defend if you are so truthful. It may not be socialism. But it is still wrong.


O those pesky entitlements. Speaking of…

“We are all entitled to our own opinions but we are NOT entitled to our own FACTs.”

FACT: We’re almost $20 TRILLION in DEBT … and try as you like, but you cannot BLAME that on the war in Iraq or Afghanistan. By the time Obama leaves office he will have allowed the debt to almost double from the time he took office!

FACT: Ever wonder why we’re always hearing about how Social Security is running out of money … but we never hear about how Welfare is running out of money? And the interesting things is, the first group worked for their money, but second group didn’t!

Here’s a wild concept…
Mandate that every single one of the 430 federal agencies cut 5% of their budget (because we all know they WASTE at least that much) — and take that money to fund a new healthcare system for the underserved and uninsured and simply call it the RCA … Responsible Care Act.

And then the government can just stay the fuk out of all the other peoples business.

Just a thought.


Political Philosophies Explained in Simple “Two Cow” Terms


You have two cows. The government takes them both and provides you with milk.


You have two cows. The government takes them and sells you the milk.


You have two cows. The government takes them both, shoots one, milks the other, pays you for the milk, and then pours it down the drain.


You have two cows. You sell one and buy a bull.


You have two cows. You sell one, force the other to produce the milk of four cows and then act surprised when it drops dead.


You have two cows. The government taxes you to the point that you must sell them both in order to support a man in a foreign country who has only one cow which was a gift from your government.


You have two cows. You keep one and give one to your neighbor.


You have two cows. The government takes one and gives it to your neighbor.


You have two cows. Your neighbor has none. So what?


You have two cows. Your neighbor has none. You feel guilty for being successful. You vote people into office who tax your cows, forcing you to sell one to raise money to pay the tax. The people you voted for then take the tax money and buy a cow and give it to your neighbor. You feel righteous.


You have two cows. The government seizes both and sells you the milk. You join the underground and start a campaign of sabotage.


You have two cows. The government taxes you to the point you have to sell both to support a man in a foreign country who has only one cow, which was a gift from your government.


You have two cows. You sell one, buy a bull, and build a herd of cows.


You have two cows. The government takes them both, shoots one, milks the other, pays you for the milk, then pours the milk down the drain.


You have two cows. You sell one, and force the other to produce the milk of >four cows. You are surprised when the cow drops dead.


You have two cows. You go on strike because you want three cows.


You have two cows. You redesign them so they are one-tenth the size of an ordinary cow and produce twenty times the milk.


You have two cows. You reengineer them so they live for 100 years, eat once a month, and milk themselves.


You have two cows but you don’t know where they are. You break for lunch.


You have two cows. You count them and learn you have five cows. You count them again and learn you have 42 cows. You count them again and learn you have 12 cows. You stop counting cows and open another bottle of vodka.


You think you have two cows, but you don’t know what a cow looks like. You take a nap.


You have 5000 cows, none of which belongs to you. You charge for storing them >for others.


You have two cows. You enter into a partnership with an American corporation. Soon you have 1000 cows and the American corporation declares bankruptcy.


You have two cows. You turn them loose in the Afghan “countryside” and they >both die. You blame the godless American infidels and the Jews.


You have two cows. You worship them.


This is a great, simple explanation and discussion that is reasonable. It is nice to see something like this in government, amidst all of the name calling and political fighting that goes on. The explanation of socialism vs regulated capitalism is excellent. This page should be promoted for more people to read..


The Republicans and other detractors of Obamacare should ask themselves that why for years, the US has had the highest government cost per capita for health care of any country, yet it’s citizens are less healthy and have shorter lifespans than any other Western democracy, (the vast majority of who have single payer, government run health care systems). Not to mention being the only nation that lets it’s citizens go bankrupt if they get sick and can’t afford to pay.

It’s not rocket science. The more people who have health care, without having to worry about breaking the bank, the healthier, happier and more productive they will be.

Can’t have that now can we!, say the Republicans, because If the people aren’t worried or paranoid, they may not vote for us again.

As John Adams once quipped, “Facts are stubborn things…..”


The reason we have shorter life spans and are unhealthier than other countries is because of the way we eat. We are a country digging our graves with our teeth. We eat unhealthy foods, killing us. It’s not about our healthcare

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