Healthcare reform and me

I suppose it’s no secret I’m a Conservative. You can read enough of my posts and ramblings to figure that out. So, like many Conservatives, it was disheartening to see the horrifying bill (yes, horrifying) pass the House with Bart “Lawnchair” Stupak leading the way. The Liberals won. They did it their way and pushed through a bill most Americans see as bad. Still, I have some Liberals I see regularly who are happy it passed and seem perplexed at my dismay, which has now given way to a quiet anger with resolve (no, I will not make inane threats against Congressmen-women-people). I have figured out what I am going to do. But, first, a few notes for those of you wondering why this bill might, quite literally, end America.

1. The bill is designed to bankrupt the health insurance industry. One of the things that has had populist backing in polls is the idea that “pre-existing conditions” are some sort of corporate greed. That we’ll deny you coverage for that health problem because you waited until you got sick to apply. What exacerbates this problem is the tax code. If you buy health insurance through your employer you get it tax free. If you’re self employed or buy your own, you get nothing. So people go where the tax breaks are. Thus, when you lose your job, there goes your insurance. You then have a narrow window to get another job or else you become subject to the pre-existing clause and anything you had before you get re-insured isn’t covered.

It’s just not fair.

Rather than fixing the tax code so all health insurance is deductible (because why would we want to fix the system when we can have Uncle Sam run it?) the Democrats’ solution is to ban the practice. You know, shoot the messenger. There’s a tax penalty if you don’t buy insurance but it’s laughable. The penalty goes up to around $700 a year. That might sound like a lot but consider that this is 1-2 months of health insurance premiums we’re talking about (and that’s based on numbers from this year, not after they’re adjusted for things down the road). Rapidly, the health insurance premiums will outpace that fixed fine.

So why is this bad? Well, consider that it’s cheaper to pay the fine than comply. Further, consider that insurance companies can’t deny you coverage for your pre-existing conditions. So let’s say Bob doesn’t like health insurance. He skips out and pays his tax fine instead. Then Bob starts getting ill. He goes to the doctor (still cheaper to pay out of pocket and the fine) and the doctor tells him it’s cancer. Right now, Bob would be out of luck. But, thanks to Obamacare, he can go right out and buy insurance. So Bob is shelling out, say, $500/mo for health insurance while the insurance company is on the hook for, say, $1000/mo in treatments. To add insult to injury, Bob recovers after a year and, surprise, drops his health insurance to go back to paying the fines. So Bob paid $6000 in health insurance premiums for $12000 in care. Initially, the health insurance companies will take that out of your pocket but there’s only so long you can run a system this upside down. Eventually the insurance industry will be as bad off as the banking industry was last year. What does that mean? Bailout! Except that, in this case, the wise Democrats will go “Hey, we just need to go to single payer. Everyone is now on the government system!”

2. This bill breaks the bank. Assume that the “savings” the Democrats claim are real. Some $180B reported and touted over 10 years. Sounds like a lot.

The federal government spent $400B in Feb 2010. Hmm… that’s not so much after all. Add in the doc fix bill and suddenly we’re in red ink. Consider further that there was all sorts of gimmickery to pass this bill as “fiscally neutral” and suddenly things look bad. The bill has 4 years of taxes and revenue before the spending starts. The estimated cost from 2014 to 2024 is $2.6 trillion, or $2,600,000,000,000 (granted such projections are wrong but EVERY entitlement projection has been well under ACTUAL costs). Add in the current massive federal deficits and we’re looking at some $14T in debt. Worse, the bill does nothing to address costs. All we’ve done is put ourselves on the hook for a health care takeover.

Solomon said that the borrower is slave to the lender. In this case, we’re slaves to China and anyone else who bought our debt. There’s only 3 ways out of this, too. Cut spending (with Democrats? fat chance), raise taxes (immensely unpopular) or inflate it out. You inflate it out by printing more money and devaluing the currency. Destroys your credit ratings with other countries but you can cut massive deficits by a lot just by doing so. There’s just one more itty bitty catch to doing this: your money becomes worthless too. Ever seen those old signs that advertise Coke bottles for $0.05? Wonder why they charge you $1.50 now? Inflation. When this is all said and done that bottle of Coke might run you $3.00 or more. And that’s at Wal-Mart. There’s nothing to stop Obama’s Fed from doing this and Obama alone sets this policy (or has the ability to stop it).

On the upside, the Democrats will have a reason to raise the minimum wage… assuming anyone will hire you.

I could go on but, on those two points alone, this bill needs repeal. So what am I going to do? I’m going to do what I suggest you do. If you want change do two simple things

1. Vote. Not just in Nov but soon in your primaries. Find someone who is willing to support repeal. Here’s a hint: that person is not going to be a Democrat (thank you, Bart Stupak). It may not even be a Republican. Read up and vote. Vote for House (and Senate)

2. Make a political donation. I don’t have a ton of money but I intend to donate. If everyone mad at this bill donates, say $5-$10 to a candidate willing to vote for repeal that would send a message louder than any protest (and certainly far more than making stupid phone calls to voice mail).

Here’s hoping for real reform (and repeal)