Probably not the best word to use when referring to this particular President, but away we go anyway. Over the weekend, President Obama made the Stations of the Cross, going around to talk shows to try to 'splain 'splain 'splain about this here socialistic whatchamagummit. The Times reports that "Obama Insists that Insurance Will Be Affordable". Apparently, middle class families in the $66,000 to $88,000 range--essentially two parents working, with average jobs--will "only" be asked to pay up to 11 to 13% of their income for insurance. I mean, what the hell, that's only tuition at a relatively good state school for little Johnny or Suzy, am I right? And, by the way, is this 11-to-13% of pre-tax income? Even better. It's like tithing! Only to the insurance industry.
Again there was some talk of "subsidies" for people who couldn't afford to pay the premium, but not a peep about price controls other than "expanding competition." Perhaps we will all buy our insurance through ebay! Or the drug market. I can just see the black market of health insurance right now: "You want your low co-pays? I got your $10 office visits right here..."
The whole thing about subsidies without price controls is weird--it seems to me like the government will then be on the hook for a whole lot more than they're bargaining for, and more than it would cost to just give people insurance. If we have to subsidize the amount that the insurance companies will charge parents of children with special needs, for instance, then we're going to be into it for something like $5000 a month, when we could have, you know, just allowed them to buy into Medicare. Oh, AND the subsidies are in the form of tax credits, which I somehow hadn't caught before, so you'll still have to pay your tithe up front, and then you'll get a store credit for it. With which you can buy an F-22. I hear they're cheap these days.
But the fun part, for me, was reading this quote, from the same article: “Right now, everybody in America, just about, has to get auto insurance,” Mr. Obama said on “This Week with George Stephanopoulos” on ABC. “Nobody considers that a tax increase.” Here, Mr. President, is one disgruntled citizen who does realize that that is a tax increase, a particularly regressive tax, a massive transfer of wealth (let's say it again) to private, for-profit companies. I have to pay GEICO so that I can pay the state to register my car. It's a great system.
I remember when they made car insurance mandatory, my mom thought it was ridiculous. She thought, why not just charge everyone a penny more per gallon, and provide basic insurance coverage for everyone with a license? If people wanted more insurance, they could of course buy more. This would take largely take care of the problem of uninsured drivers as well (which, in my part of California, meant another $10-$20 a month for people with insurance, because there were so many uninsured people driving). And, fairly enough, the people who consumed more gas, and who were therefore on the road more and more likely to be in an accident, paid more. Mom's current idea is that we tax toilet paper to pay for health care--an extra 5 cents a roll, and health care for everybody.
1 comment:
Wow, that's a great point you make in the opening paragraph. 11-13 percent of a family income to pay for insurance. Since both are working to pay that, they're also paying to make sure Jonny and Suzie have a cesspool they can go to for a few hours. It was interesting, your blog pointing out that we pay the car insurance companies for the right to pay the state, and for health insurance we will pay the government to pay the insurance companies. That setup is going to make for some great nights at the strip clubs for staffers and insurance lobbyists. Maybe Godwin can get us jobs in that little game.
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