Public Option, Health Care and the Public Option
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______________________________________________________
Wednesday September 9, 2009.
ZingerKing will publish Part II of the article "Implications of Radical Change in Life Expectancy" on Friday, September 11, 2009. However, with so much happening, and President Obama speaking to the nation this evening about his health care proposal, I want to pass along information prior to the discussion that I have not seen discussed anywhere else but seems important for all of us to consider.
Today's Zinger:
Public Policy Is Like A Game Of Chess. Its Not the First Move That Is The Worry, But Rather What It Sets Up For Future Moves.
The Morning Briefing:
The public option is appropriately named. It will quickly become the option of the general public but not of those with higher incomes or government employees.
The Speaker of the House (Nancy Pelosi) and the Democratic Left believe that the public option is critical to any health care solution. The Blue Dog Democrats (social conservatives) and the Republicans are against a public option for health care. The gang of six (Democrats and Republicans) that are working on a compromise bill are strongly suggesting an 8% tax on payroll for any company that fails to provide health insurance to its' employees.
The implications of the public option and the 8% penalty.
Who Said It?
The trouble with the world is not that people know too little, but that they know so many things that ain't so.
The Discussion:
Every business that employs workers that earn under $50,000 per year will pay the 8% payroll penalty and turn the employees over to the public plan rather than buy insurance on the open market, simply because it will be cheaper. With health insurance premiums averaging $350 per person and $500 per family, the $333 per month penalty for a $50,000 per year worker is less than the cost of buying insurance on the open market. Now remember that the penalty ($333) is calculated at the $50,000 per year worker. The saving will be even greater for those earning less than 50,000 per year. Seventy percent (70%) of Americans earn less than $50,000 per year. The public plan will have the largest market share very quickly.
Its no wonder certain businesses (like Wal-Mart) are advocates for the public option.
Higher income workers will have access to higher priced alternatives and thus different levels of care.
There are obviously benefits to finally providing health insurance to many Americans that currently do not have insurance, however it will mean that many Americans will have to change plans in the future as businesses migrate. The benefit to the few will be the result of the many making the change and there will clearly be different levels of care in our society in the future.
The Conclusion:
I know that many people support the public option, but I really wonder if we have thought through the implications for the future. Like a game of chess, lets think a few moves ahead. Even if the government lets us keep our current plan, how long before you change jobs or your company renegotiates health insurance, which will mean your plan is gone and new options must be considered? What are the implications of the government controlling over 80% of any market (public option + veterans administration + Medicaid + Medicare)? Is the public option combined with the 8% penalty really just a way to drive towards Universal Health Care provided by the government?
Who Said It?
Mark Twain.
The trouble with the world is not that people know too little, but that they know so many things that ain't so.
ZingerToon:
Mrs. O'Leary, stop, stop!!!! We said we were taking you to Dr. Beth Pannel, not the Death Panel.
Recent ZingerKing Articles:
Articles can be found under “Recent Articles” in the purple sidebar. Older articles can be found in the archives that are stored by month. These are found at the bottom of the purple sidebar. Here is a list of the most recent articles.
Part I: Implications of a Radical Change in Life Expectancy
Zingers Alternative For health Care Reform
The Tug Of War Of Special Interest Groups and Health Care Reform
Credibility Of The Administration Is Challenged
Taming The Angry Mobs
Creating A Free Market Alternative to Government Health Care
Cash For Clunkers
Culturalism versus Racism in America
The Revolving Door of Politics: Franken, Palin, Biden
Consequences of Taxing the Wealthy
Obama's Clintonesque Moment
Overcoming Bias: Challenging Our Own Beliefs
Health Care Just Made Me Sicker
Shameless Request For Support:
ZingerKing operates without advertising or government funding (obviously). The purpose is to inform and educate its readers about economic and political issues that affect our lives.
Help ZingerKing grow. Have you Zinged someone lately? Please forward a link to ZingerKing to a friend, family member or neighbor. If you enjoy reading the Zinger please subscribe (see the subscribe box at the top of the article in the purple side band). Subscribers receive the "Morning Briefing" when published with a link to the full article. Periodic alerts are sent to subscribers only with important updates and insights into critical issues. Your email address will not sold to others and will not be shared.
ZingerKing is published on Monday, Wednesday and Friday of each.
______________________________________________________
Wednesday September 9, 2009.
ZingerKing will publish Part II of the article "Implications of Radical Change in Life Expectancy" on Friday, September 11, 2009. However, with so much happening, and President Obama speaking to the nation this evening about his health care proposal, I want to pass along information prior to the discussion that I have not seen discussed anywhere else but seems important for all of us to consider.
Today's Zinger:
Public Policy Is Like A Game Of Chess. Its Not the First Move That Is The Worry, But Rather What It Sets Up For Future Moves.
The Morning Briefing:
The public option is appropriately named. It will quickly become the option of the general public but not of those with higher incomes or government employees.
The Speaker of the House (Nancy Pelosi) and the Democratic Left believe that the public option is critical to any health care solution. The Blue Dog Democrats (social conservatives) and the Republicans are against a public option for health care. The gang of six (Democrats and Republicans) that are working on a compromise bill are strongly suggesting an 8% tax on payroll for any company that fails to provide health insurance to its' employees.
The implications of the public option and the 8% penalty.
Who Said It?
The trouble with the world is not that people know too little, but that they know so many things that ain't so.
The Discussion:
Every business that employs workers that earn under $50,000 per year will pay the 8% payroll penalty and turn the employees over to the public plan rather than buy insurance on the open market, simply because it will be cheaper. With health insurance premiums averaging $350 per person and $500 per family, the $333 per month penalty for a $50,000 per year worker is less than the cost of buying insurance on the open market. Now remember that the penalty ($333) is calculated at the $50,000 per year worker. The saving will be even greater for those earning less than 50,000 per year. Seventy percent (70%) of Americans earn less than $50,000 per year. The public plan will have the largest market share very quickly.
Its no wonder certain businesses (like Wal-Mart) are advocates for the public option.
Higher income workers will have access to higher priced alternatives and thus different levels of care.
There are obviously benefits to finally providing health insurance to many Americans that currently do not have insurance, however it will mean that many Americans will have to change plans in the future as businesses migrate. The benefit to the few will be the result of the many making the change and there will clearly be different levels of care in our society in the future.
The Conclusion:
I know that many people support the public option, but I really wonder if we have thought through the implications for the future. Like a game of chess, lets think a few moves ahead. Even if the government lets us keep our current plan, how long before you change jobs or your company renegotiates health insurance, which will mean your plan is gone and new options must be considered? What are the implications of the government controlling over 80% of any market (public option + veterans administration + Medicaid + Medicare)? Is the public option combined with the 8% penalty really just a way to drive towards Universal Health Care provided by the government?
Who Said It?
Mark Twain.
The trouble with the world is not that people know too little, but that they know so many things that ain't so.
ZingerToon:
Mrs. O'Leary, stop, stop!!!! We said we were taking you to Dr. Beth Pannel, not the Death Panel.
Recent ZingerKing Articles:
Articles can be found under “Recent Articles” in the purple sidebar. Older articles can be found in the archives that are stored by month. These are found at the bottom of the purple sidebar. Here is a list of the most recent articles.
Part I: Implications of a Radical Change in Life Expectancy
Zingers Alternative For health Care Reform
The Tug Of War Of Special Interest Groups and Health Care Reform
Credibility Of The Administration Is Challenged
Taming The Angry Mobs
Creating A Free Market Alternative to Government Health Care
Cash For Clunkers
Culturalism versus Racism in America
The Revolving Door of Politics: Franken, Palin, Biden
Consequences of Taxing the Wealthy
Obama's Clintonesque Moment
Overcoming Bias: Challenging Our Own Beliefs
Health Care Just Made Me Sicker
Shameless Request For Support:
ZingerKing operates without advertising or government funding (obviously). The purpose is to inform and educate its readers about economic and political issues that affect our lives.
Help ZingerKing grow. Have you Zinged someone lately? Please forward a link to ZingerKing to a friend, family member or neighbor. If you enjoy reading the Zinger please subscribe (see the subscribe box at the top of the article in the purple side band). Subscribers receive the "Morning Briefing" when published with a link to the full article. Periodic alerts are sent to subscribers only with important updates and insights into critical issues. Your email address will not sold to others and will not be shared.
I have to believe that our government officials are well aware of this connection. They know that that government run health care will be rejected by the people of this country. I think you are right that they have found a way to get there in a few steps rather than deal with the public outcry if they were to try and enact legislation immediately.
The idea of health care for all really does sound good, but it will come with real consequences. I'm not sure we have really thought through the consequences.
So many people say that the US health care system does not perform well compared to other countries, but that is because not everyone has access to health care, not due to the quality of care. We need a way to improve access and lower costs at the same time. Tort reform could reduce costs by 20%. that alone would put the US health care costs closer to other developed countries. Our litigious society has created a lot of these problems.
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