I'm old enough to remember the days before auto liability insurance was mandatory. One of the biggest arguments for its passing was that it would bring down the cost of insurance for everyone.
Well, it didn't.
It made the cost go up. Before, if you were high-risk, the insurance companies would reject you for coverage, or the expense would be so great that you couldn't afford it. But then, by law, they had to cover everyone-- and everyone had to pay a piece for covering those high-risk motorists.
We're seeing this now with health care coverage.
Personally, I'm going to be taxed on my insurance, something like $2800 a year. In effect, my insurance just went up by $230 a month, so that I could pay for insurance for someone that won't pay for it themselves. I have a great insurance plan, granted; but it's part of my compensation package-- I earn it.
Let me step you through the cost-benefit analysis a little bit here.
From the AP:
Nearly 4 million Americans - the vast majority of them middle class - will have to pay a penalty if they don't get insurance when President Barack Obama's health care overhaul law kicks in, according to congressional estimates released Thursday.The penalties will average a little more than $1,000 apiece in 2016, the Congressional Budget Office said in a report.
Now to the funny part:
Democrats argue that the requirement and the penalties are a necessary part of a massive overhaul designed to expand coverage to millions who now lack it. They point out that getting more Americans, especially young and healthy people, in the insurance pool will reduce costs for others and could lower premiums."The new law will make health insurance affordable for everyone and CBO's analysis confirms that the vast majority of uninsured Americans will find health care affordable and choose to participate," said White House spokesman Nick Papas.
---snip---
By 2016, those who must get insurance but don't will be fined $695 or 2.5 percent of their household income, whichever is greater.
---snip---
About 3 million of those required to pay fines in 2016 will have incomes below $59,000 for individuals and $120,000 for families of four, according to the CBO projections. The other 900,000 people who must pay the fine will have higher incomes.
(emphasis mine)
One more time:
It's necessary to fine people, notably those that don't really need it so much, for not buying insurance, so that we can say that it costs less, because we just took their money without providing them a service.
That is to say, it's all about getting something for nothing.
Some people are going to get something while giving nothing, and others are going to give something while receiving nothing. It's that Robin Hood effect. Young people and healthy people simply do not pay enough for insurance. The solution? Rob them.
If you make less than $28,000 a year, you will have to pay only $695 for not having insurance; ie you receive nothing except a bill. If you make more than that, there's no limit.
Also from the AP:
More Americans will be covered, but costs are also going up.
---snip---
"During 2010-2019, however, these [cost-cutting] effects would be outweighed by the increased costs associated with the expansions of health insurance coverage," wrote Richard S. Foster, Medicare's chief actuary. "Also, the longer-term viability of the Medicare ... reductions is doubtful."
Now, why was I thinking that anyway? Something about driving around in my car....
This is something of a mystery to me:
Tax credits would help many middle-class households pay their premiums, while Medicaid would pick up more low-income people. Insurers would be required to accept all applicants, regardless of their health.
The fact of the matter is we already have tax credits for that. You have to itemize (Schedule A) to take the credit; but the only reason people don't itemize is if they come out better for not doing it. But now, we need some other kind of tax credit.
The biggest health care expense most young people will face is having a baby. That can get expensive.
There used to be a way for people to do that without having to worry about the expense of it. It's called "Join the military."
Same with making a college education available to everyone. We already have a program for that. It's called "Join the military."
This health care fiasco is just another rob-the-young redistributionist scheme to give people who contribute nothing more than they're worth. If anything, I see it as a reason for young people to become more involved in the political process. You're going to be paying quite a bit for all the entitlements that the boomers voted in for themselves (Clinton balanced the budget largely by doubling the social security deduction from your paycheck-- look forward to more of that).
It's really your call as to how many losers and bozos you want digging in your pockets. But until you realize that you're getting robbed, not much to the good is going to happen.
