09
Jan
07

R-nold wants Health Care For All

Evidently he’s miffed that he had to fork over a copay after he broke his leg.

Here’s his plan:

Schwarzenegger’s plan, which he publicly unveiled at noon, would require employers with 10 workers or more to buy insurance for their workers or pay a fee of 4% of their payroll into a program to help provide coverage for the uninsured.

Schwarzenegger would tax doctors 2% of their gross revenue and place a 4% tax on hospitals. He campaigned for reelection on an anti-tax platform, but his administration argues that so many more people would have insurance that medical providers would make more money.

The governor also wants to ban insurers from refusing to offer coverage to some individuals because of their prior medical conditions. Insurers would also have to spend at least 85% of their premium revenues on patient care, a move that would limit the amount companies spend on administrative costs and profits.

In an effort to cover all Californian children, including ones in the state illegally, Schwarzenegger’s plan would expand the state’s Healthy Families program, providing insurance to children whose parents make less than three times the poverty level. That works out to about $60,000 for a family of four.

And Schwarzenegger said his plan would require every Californian to have health insurance.

“If you can’t afford it, the state will help you buy it,” he said, “but you must be insured.”

Schwarzenegger called the delivery and payment of healthcare in California “disastrous,” noting that nearly 1 in 5 residents is uninsured.

“The problem with that is, of course, that the rest of the people who have insurance pay for them,” said the governor. “Those that are fortunate enough to have coverage — we are paying a hidden tax.”

It’s an interesting idea. But it’s not a conservative idea. The government is forcing people to provide health coverage. And that’s not cheap. Essentially, for a 15 person business, you’re looking at a cost of anywhere from $200-500 per month per person– on the low end, that’s $3000 in costs a month and $36,000 a year. On the high end, that’s $7500 a month or $90,000 a year. Arnold wants to build in a cost structure that boosts payroll expenses and therefore puts an additional burden on the company. That means I, as a small business owner, would have to account for that $90,000 cost to me by raising prices or laying workers off. In addition, I now have to remove money from my employee’s paychecks and have that money go directly to health insurance.

Now combine this all with a state which has a high cost of living (which means more people earn over $50,000 a year after deductions, which means more people are paying maximum middle class tax of 30%), a 10% state income tax, and combined sales taxes that run between 7.25 and 8.5%. What we end up with is a cumulative tax close to 50% of an average Californian’s income. Not to mention that the cost of living will increase with price increases from the manditory health insurance.

But everyone will feel good because everyone’s got health insurance, right? Well, almost. Doctors get the super-whammy (taxes all around), so some are going to jump the state. Why not? Who wants to live in a place where the government makes you pay extra on your income than others and has sue-happy lawyers who have raised the insurance premium for malpractice sky-high?

In the meantime, because everyone has health coverage, more people will go to the doctor, and there will be less doctors to see the patients. As a result, appointments will have to be made months in adavance and urgent-care visits will be done through emergency room care just to guarantee a speedy appointment.

This is a bad idea. It’s an especially bad idea when it’s the government forcing you to buy something you may not necessarily want.

But count your blessings. At least he isn’t requesting government control of health care, like Hillarycare.

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My name is Doc. Welcome to my blog. If you're visiting from another blog, add me to your blogroll (and I'll happily reciprocate). I have a Ph.D. in Chemistry and live in Wisconsin. If you have any questions, feel free to email me. My email is docattheautopsy at gmail. (No linking to deflate the incredible spam monsters).

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