Health Care Reform: The Devil IS in the Details

Word from on high is that President Obama comes back from his latest World Apology Tour ready to turn up the heat on Congress to give him a Health Care Reform bill by August.

So it is only fair to warn you freedom-loving, hard-working Americans that both your freedom and your paychecks are in greater danger than ever.

Want proof?

Keith Hennessey has the details of a leaked copy of the Kennedy health care bill (he calls it Kennedy-Dodd because Sen. Chris Dodd is assisting in its development since Kennedy is absent because of his illness).

If you are a person of common sense, you are not going to like the details. First of all, can we agree that there is no such thing as "free" health care. Someone must pay. Under the current system, you pay, or your insurance carrier, and where do they get their money? From insurance premiums paid by people like you, and employers, to a greater degree.

Under the proposed system, the government will step in and provide a cushion of money. Again, can we agree that this money is not free. It comes from taxes, which come from you, either directly through income taxes and other payroll deductions, or from taxes on businesses. And who ultimately pays for the business taxes? You do. Through higher prices for goods and services.

Got that? If there is another source for the money, other than running the federal printing presses, I don't know what it is? If you have the answer, leave a comment. You'd better be correct, however, or I shall taunt you unmercilessly.

Hennessey breaks down the details to 15 essential things you should know. I will try to break it down even farther, in the interest of space.

1. You will be required by law to have health insurance under a "qualified" plan. * If you go a month without health insurance, you will be forced to pay a new federal tax.

Incredibly, the amount and structure of this new tax is left to the discretion of the Secretaries of Treasury and Health and Human Services (HHS), whose only guidance is “to establish the minimum practicable amount that can accomplish the goal of enhancing participation in qualifying coverage (as so defined).”

In other words, you will pay a tax determined by bureaucrats. (Taxation without representation). And you don't have the choice of staying off the system. (Whatever happened to Pro-Choice?)

2. Employers would be required to provide health insurance, either private or government issue. Any employer failing to do so would be penalized by a new tax (also levied by Treasury and HHS).

3. About that "qualified" plan: The government gets to define it. Private insurers must meet its provisions. As described, it would force many private insurers to raise their prices to accomodate these. Since the government's insurance can tap into tax funds for underwriting, it means the federal insurance likely would be cheaper. (Unfair advantage thus eliminating competitiveness). Many employers would opt for the federal plan, as would many individuals. Some, if not most, private insurers would collapse.

Welcome to Socialized Health Care!

4. All health plans could not charge higher premiums for risky behaviors.

5. Higher premiums for private health insurance is inevitable. I covered this in point 3.

6. "The bill would expand Medicaid to cover everyone up to 150 percent of poverty, with the Federal government paying all incremental costs (no State share). This means adding childless adults with income below 150 percent of the poverty line."

7. Incredibly there would be a subsidy for the poor, defined as those making from 150 percent to 500 percent (this is not a misprint) of the poverty line. This year that would include a family of four making $110,000. The bill does not say where that money will come from. Want to guess?

8. People in "high cost areas" like NYC or Boston would get more subsidy than people living in, hmmm, places like Oklahoma. Now that sounds fair ... (Can you sing, "Red State, Blue State, Me State, You State"?)

9. The government would offer a "public plan option" with early-year incentives designed to provide political support to pass this draconian monster.

10. Group health plans with 250 members or less would be prohibited from self-insuring.

11. States would set up health plan "gateways" for marketing. If they don't, the feds would step in and do it for them.

12. Because of legal technicalities -- and a desire that insurance companies not lobby against passage of the bill -- existing health insurance plans would not have to meet the new insurance standards. At least for a time. But don't change employers or get laid off.

13. The bill does not indicate where or how the money to pay for all this will be raised. Hennessey assumes it will be up to Congress. I am not so sure, since it seems to create a "taxing authority" for Treasury and Health & Human Services.

14. The bill defines eligibility as for a citizen or an alien lawfully in the country. (It would not take much for this to cover anyone in the country, lawful or not.)

15. This one is so open-ended and potentially nefarious -- think ACORN -- that I'll let Hennessey explain it

The bill would create a new pot of money for state gateways to pay “navigators” to educate people about the new bill, distribute information about health plans, and help people enroll. Navigators receiving federal funds “may include … unions, …”

A few of the other points Hennessey makes:

A government-appointed board would determine what items and services are “essential benefits” that your qualifying plan must cover.

Health insurance premiums would rise as a result of the law, meaning lower wages.

You would find a tremendous new disincentive to switch jobs, because your new health insurance may be subject to the new rules and would therefore be significantly more expensive.

Those who keep themselves healthy would be subsidizing premiums for those with risky or unhealthy behaviors.

Far more than half of all Americans would be eligible for subsidies, but we have not yet been told who would pay the bill.

He signs off with: "I strongly oppose this bill."

You should too.