Daily News Updates - Health Insurance News

Focusing On the Big Picture, Pt.2 – Radical change with no model to draw from.

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Considering point #2: As the cost of health insurance premiums continue to rise 3 times faster than inflation, so will the tax owed rise. The tax will not only levy against what employees are paying now for health insurance, but also the employers’ portion. This amount is far greater than most employees realize. Soon, Americans will be paying more tax on health insurance then the credits are worth. Tax analysts estimate this to happen within five years.

Considering point #3: If the risk-sharing goes away, anyone not young and healthy will get nailed. Risk-sharing pools are afforded only by general group plans, such as employer health insurance. Of course the health insurance industry much prefers only individual risk-assessed plans (underwriting). Their profit margin is much higher that way.

A few consumers get good deals, some get rotten deals and some get no deals at all. By pushing millions of consumers over into such plans, Mr. McCain is showing great favor to the health insurance industry (a Republican legacy).

Increased demand alone, would have to drive up the cost of private health insurance. In a capitalistic market, higher demand has to drive up prices.

With our economy in ruins, the median working-age annual household income dropping $2,176 since the Bush admin took power, job loss unprecedented in the last 50 years and a staggering $700 billion punishment for failure of regulation, it’s impossible to project the extent of demise in family health insurance. Again, the move is so radical, without more research, it tends to be somewhat of a wildcard. We have no historical models to study what the effects would be.

Continued…
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