What’s Stopping Small Businesses And People From Pooling Health Care?

Posted by Jason | Posted in Health Care | Posted on 26-02-2010

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During the Health Care Summit yesterday, the word pooling was used a lot. Typically, it was in reference to how the government can enabled people and small businesses to setup pools to purchase health insurance. Has anyone asked what is preventing that now? The politicians act like nature itself is preventing “pooling”.

Senator Baucus: So the main point is we’re not really that far apart. We’re trying to find ways for small business to pool, small business to take advantage of competition, they shop and compare; and also some tax provisions that enable — to encourage businesses to get health insurance.

Congressman Andrews: And then the President asked the question about whether we can find agreement on pooling the purchasing power of small businesses and individuals so they can get the same deal that big companies and members of Congress get. And my friend John Kline talked about the association health plan proposal. Respectfully, John, I think that what you’re talking about with association health plans and what we’re talking about with exchanges is a semantic difference. It’s a matter of pooling the purchasing power of small businesses and individuals to get a better deal.

President Obama: I just want to point out, though, that the principle of pooling is at the center of both the Senate and the House bill.

Representative Boustany: Small business health plans is one way to really deal with this and allow for pooling.

What is preventing people and small businesses from pooling? It’s the same root problem of all our problems, GOVERNMENT. The government is the one who sets up these tyrannical rules and regulations that say what “free” people can and can’t do. They tell you how you are going to buy, what you are going to buy, how you are going to pay for it, and on and on. It is not nature, and it is not the free market.

If these geniuses want to enable people to pool, they should get the government out of health care. If pooling makes sense for people, they will do it themselves. The problem is right now they can’t because government is a pool of bad regulations and idiots with bad ideas.

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Obama Brings Big Pharma Into The Family

Posted by Jason | Posted in Global Warming, Health Care | Posted on 27-11-2009

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I’m not saying we are a fascist nation yet, but we are moving closer and closer. Obama’s dealings are looking more and more like Don Corleone. Making an offer they can’t refuse, Big Pharma is falling in line.

In June, the Pharmaceutical Research and Manufacturers of America sealed a deal with the White House and Senate Finance Chairman Max Baucus promising to contribute $80 billion in lower drug costs over the next decade to ObamaCare, plus a multimillion-dollar TV ad campaign. In return they were to be spared from price controls and the reimportation of cheaper foreign drugs.

To hell with the people. Obama and Big Pharma are going to prevent importation of drugs from other countries, which would help drive costs down. In a free market, drug companies would not be able to charge one price to foreign consumers and another, higher price to American consumers. American consumers are subsidizing the research and development, so the rest of the world gets the benefit without the cost. In Corleone fashion Obama threatens price controls (death to your business) to Big Pharma, or they can be a team player and benefit like the rest of those who fall in line with “the family”.

The pharma lobby was unfazed. “Despite the shortcomings in the House legislation, we remain completely committed to helping the President and Congress pass comprehensive health care reform this year,” a senior vice president said in a statement. “This is a three-act play and a good critic doesn’t write a review after the opening scenes.”

Why would pharma be fazed, when the Don gives them his word that they’ll be taken care of?

So how has the industry responded? More or less as Lenin predicted. Big Pharma is now running ads against Joe Lieberman, saying his threat to torpedo the Senate bill could cause drug prices to rise by 20%. It is also funding a campaign that targets the fence-sitters Ben Nelson, Mary Landrieu and Blanche Lincoln.

So after we’ve been told how evil Big Pharma is, how they only care about profits, how they careless if you live or die, and how they hold a gun to your head to make you buy their product, we are now supposed to believe they are looking out for the public, and those who stand against government health care are now the bad ones. Oh, how a little threat from the White House can change things.

via Big Pharma Sells Out on Health Care – WSJ.com.

Now we are supposed to believe that Big Pharma is actually giving something up to the benefit of all of us. Do you really believe they are doing something that isn’t in their best interest? This will lock out imported drugs, preventing price competition. It will prevent smaller drug companies from entering the market, thus preventing competition. It also allows the government more control over the drug business. Once Big Pharma enter the family, they can never leave.

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The Health Care Rationing Commission – WSJ.com

Posted by Jason | Posted in Government, Health Care | Posted on 16-11-2009

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Here’s an article from the Wall Street Journal this morning about the rationing commission.

Like most of Europe, the various health bills stipulate that Congress will arbitrarily decide how much to spend on health care for seniors every year—and then invest an unelected board with extraordinary powers to dictate what is covered and how it will be paid for. White House budget director Peter Orszag calls this Medicare commission “critical to our fiscal future” and “one of the most potent reforms.”

On that last score, he’s right. Prominent health economist Alain Enthoven has likened a global budget to “bombing from 35,000 feet, where you don’t see the faces of the people you kill.”

As envisioned by the Senate Finance Committee, the commission—all 15 members appointed by the President—would have to meet certain budget targets each year. Starting in 2015, Medicare could not grow more rapidly on a per capita basis than by a measure of inflation. After 2019, it could only grow at the same rate as GDP, plus one percentage point.

……

Worse, it makes little room for medical innovations. The commission is mandated to go after “sources of excess cost growth,” meaning treatments that are too expensive or whose coverage will boost spending. If researchers find a pricey treatment for Alzheimer’s in 2020, that might be banned because it would add new costs and bust the global budget. Or it might decide that “Maybe you’re better off not having the surgery, but taking the painkiller,” as President Obama put it in June.

In other words, the Medicare commission would come to function much like the National Institute for Health and Clinical Excellence, which rations care in England. Or a similar Washington state board created in 2003 to control costs. Its handiwork isn’t pretty.

The Washington commission, called the Health Technology Assessment, is manned by 11 bureaucrats, including a chiropractor and a “naturopath” who focuses on alternative, er, remedies like herbs and massage therapy. They consider the clinical effectiveness but above all the cost of medical procedures and technologies. If they decide something isn’t worth the money, then Olympia won’t cover it for some 750,000 Medicaid patients, public employees and prisoners.

So far, the commission has banned knee arthroscopy for osteoarthritis, discography for chronic back pain, and implantable infusion pumps for pain not related to cancer. This year, it is targeting such frivolous luxuries as knee replacements, spinal cord stimulation, a specialized autism therapy and MRIs of the abdomen, pelvis or breasts for cancer. It will also rule on routine ultrasounds for pregnancy, which have a “high” efficacy but also a “high” cost.

Currently, the commission is pushing through the most restrictive payment policy in the nation for drug-eluting cardiac stents—simply because bare metal stents are cheaper, even as they result in worse outcomes. If a patient is wheeled into the operating room with chest pains in an emergency, doctors will first have to determine if he’s covered by a state plan, then the diameter of his blood vessels and his diabetic condition to decide on the appropriate stent. If they don’t, Washington will not reimburse them for “inappropriate care.”

via The Health Care Rationing Commission – WSJ.com.

Here is more of the government deciding that if not everyone can have the expensive medical procedures, then no one will.  If this is the way you encourage growth and innovation, I must have missed it in my Econ 101 class. I said this in a previous blog, and I’ll say it again. Jealousy of the rich, who have more health care options, does not help the middle class or the poor. It’s the rich who pay for the innovations at first, and once companies begin recouping their R&D cost and run out of rich people (there aren’t that many of them), then prices begin to decline bringing the new technology to the masses.

While the government would argue that these limits are only on government plans, we all know that eventually we are going to fall under a national health care plan with government health care for all. Government never stops once a program is implemented. It only gets bigger. Government programs have to grow and get more people dependent on them. They are similar in this respect to private companies, except private companies have to grow by you voluntarily deciding to use them. Government just changes it’s rules and forces you to abide by them.



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Health Care Reform – Coercion, dishonesty and the deal with the devil

Posted by Jason | Posted in Economics, Government, Health Care | Posted on 21-10-2009

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How do you get health care reform, which will harm doctors, patients, health related companies and all tax payers? Simple. You lie, cheat, steal, and if need be, you bang some heads. That is exactly what the Obama administration and congressional democrats are doing. Today’s Wall Street Journal highlights just one such scam being employed to get the support of the American Medical Association.

President Obama has made serial promises that he will not sign a health-care bill that “adds one dime to our deficits, either now or in the future, period.” This was never plausible, but now we can begin to understand what he meant: Democrats plan to make ObamaCare “deficit-neutral” by moving nearly a quarter-trillion dollars off the books, in the fiscal deception of the century.

Later this week, or maybe next, Senate Democrats plan to vote on a stand-alone bill that strips a formula that automatically cuts Medicare physician payments out of “comprehensive” health reform. Rather than include the pricey $247 billion plan known on Capitol Hill as the “doc fix” as part of ObamaCare, they’ll instead make this a separate contribution to the deficit, without compensating tax increases or spending cuts. Majority Leader Harry Reid explained at a press conference last week that “All we’re doing is wiping the slate clean by adjusting the baseline to what is current policy. This is not new policy.”

Wiping the slate is right.

It’s true that Congress likes to pretend that the “sustainable growth rate,” or SGR, is real. Created in 1997, the SGR slashes Medicare reimbursements if costs rise too steeply, as they always do. In January, doctors fees are scheduled to fall by 21.5%, and 40% over the next five years. That would force many doctors to stop seeing Medicare patients, so Congress intervenes every year and temporarily overrides the cuts.

The American Medical Association’s asking price for supporting ObamaCare is scrapping the SGR. House Democrats did just that, but it pushed the total cost of their bill above $1 trillion, a political red line. The Senate Finance Committee chose the subterfuge of fixing the problem for only one year, which is how Chairman Max Baucus could claim he had done the miracle-work of designing an entitlement that reduces the deficit over 10 years. The AMA wasn’t pacified.

So now Democrats are simply going to “untether” this spending on doctors from ObamaCare, hiding even more of its true costs. At a meeting on the Hill last week, Mr. Reid and White House Chief of Staff Rahm Emanuel made the quid pro quo explicit, telling the AMA and about a dozen specialty societies that in return for this dispensation they expect them to back ObamaCare, no questions asked.

via Democrats Plan to Strip Sustainable Growth Rate Formula from Health-Care Reform – WSJ.com.

Already the Democrats are gathering support from horrible Big Pharma, Big Insurance, and now they are twisting arms to get Big Docs. We all know how evil these groups are, while the government is so virtuous and compassionate. Why would these groups that are going to be harmed by health care reform decide to back it? Is it because it’s what’s best for America? We are told that Big Pharma and Insurance are so evil and too many doctors would cut off  your left leg just to make a buck, but then when they back Obama all the sudden we are supposed to say, “Oh, well if they are backing it, it must be a fabulous idea.” Either they are evil, or they are not, Obama.

So to see who is evil, let’s just see who is pulling the fast one. In the article above, the government currently has a policy of slashing medicare payments to doctors if medicare costs rise too quickly. As we’ve discussed in previous posts, costs always rise “too quickly”, because government money floods the market driving up demand and third party payer hides price signals from the consumer. Also, “too quickly” is an arbitrary measure based on medicare budgeting. It has nothing to do with a what is really happening economically.

Anyways, in the end doctors are going to have their reimbursements cut yearly as costs exceed bureaucratic expectations. If you are a doctor, how many times are you going to let the government put the screws to you before you stop treating medicare patients? Then what happens when doctors begin dropping medicare patients? Well, we’ve already discussed that cost or price is effected by supply and demand. Even if demand stayed the same, which it won’t because this is a new expansion of medicare, supply is going to be cut. Doctors will be dropping out, leaving less doctors and choices for patients on the government’s dole. Oh, and guess what. With the decrease in supply, guess what happens. You guessed it, costs increase. Hmm, what did the government say they would do if costs increase above expectations? Oh yeah, they would cut reimbursement rates, leading to a circular decline of medical care.

“Hold up buddy. The article above says they are scrapping that.” Oh, that’s right. In a bargain with the devil, the AMA is going to support this if congress drops the SGR. Does dropping it fix the budgetary problems? No it doesn’t, and as soon as the budget ceiling explodes, you will hear how evil the doctors are again. Congress, like the decievers they are, will undoubtedly renege on their agreement with the AMA and re-instate the SGR.

There is nothing good about the government involvement in health care. It’s making a deal with the devil expecting him to uphold his end of the bargain. The problem is once the devil has gained control of your life, it takes an act of God to get him out.

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Health Care Reform – Market principles to deliver real reform – Part 1

Posted by Jason | Posted in Economics, Government, Health Care | Posted on 15-10-2009

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The health care debate has been taken to the next level since Barack Obama’s election. While I completely disagree with his approach to fixing health care, I must say it is a good thing to bring the issue to the forefront and try to come up with some solutions. As mentioned in an early post though, you have to look at the root causes to see what problems you need to actually address.

For those of you who might not have read my previous post, the problem with health care is the third party payer model we use, which blocks price signals from properly stabilizing the supply and demand of goods and services. In other words, we take actions that drive up the demand for more services and products while not increasing the supply of those services and products at the same time. We also add unnecessary costs on top of those services and products that then is passed onto the consumer or the insurance company.  A government take over will not address the issue of increasing demand without rationing of either quantity of services or quality of services. I know, “Hey fella, the Baucus bill doesn’t have a government take over.” The Baucus bill is leading the way to a government take over. It is creating a massive amount of increased cost on individuals, employers and medical companies. Once merged with other bills, we’ll probably end up with a government take over trigger. This is setting up a straw man that is doomed to failure. It shouldn’t be called a trigger but a lit fuse slowly moving to the bomb of government health care. Instead, we should see bills that address these problems with free market solutions.

So, what are the free market solutions? While I don’t claim to have the genius to provide all the solutions, I do believe there are some simple but hard solutions that can be implemented. Free market solutions must address the issue of rising demand that is the result of third party payer and the state of health for average Americans.

To address the third party payer problem, we must look at the biggest provider of health insurance, employers. Employers offering health care benefits was originally used to compete for employees. It quickly evolved into something that was encouraged by the government and expanded by unions. Government encouraged the expansion via the tax code and mandates. With this constant push towards more and more coverage, insurance began to take care of everything a person needs or wants in regard to health, dental, vision, and mental health.  One can quickly see that more and more people demanding ever expanding coverage only has one effect, increased cost of insurance. Then the very nature of insurance, where it takes the end consumer out of the value decision of the purchase, drives up the cost of the actual service or product. This must be addressed by fixing the root cause, which is third party payer of the insurance by the employer and the third party payer of the service or product by the insurance company.

The first step has already been enacted, but needs to be encouraged and sold to the public. Under President Bush, Health Savings Accounts, or HSAs, were passed into law to address the health care crisis. Like every other issue under Bush though, it was never sold to the public. It’s just not as sexy as “free” health care, even though it actually works.  The gist of an HSA is people purchase high deductible, low premium health insurance that would cover expenses after a certain dollar amount. In addition they can put tax free money into their HSA to cover the deductible. When they go for a doctor visit, they write a check to the doctor from their account. Once their deductible has been reached, the insurance company takes over.

The HSA addresses many of the issues that result from the unique insurance model that is used by the health care industry. In no other insurance model, does insurance take care of everyday occurrences. Insurance is to guard a person or organization against risk. The best example is car insurance. We buy car insurance to make sure that we can get our car repaired or paid off if we are in an accident. We also get liability insurance to insure ourselves against a law suite if one is filed by the other party in a vehicle accident. We do not use our car insurance for oil changes, new tires, or even an expensive item like a transmission replacement. These are wear and tear issues that are guaranteed to happen, while accidents are not. If we are responsible, we plan for things that are guaranteed to happen, and we insure against those things that may or may not happen. This model of insurance is why you can get an oil change for under $20, but a new fender for some reason costs thousands. Notice the part of vehicle repair that is paid by insurance is much higher compared to the part that is paid out of pocket. When we pay out of our pocket, we shop around and demand better deals. When insurance pays, we could care less.

For some reason though, with health care, we ignore this model, and we buy health insurance for our human wear and tear. We all know we are going to get sick. We all know we’ll need check ups. If you have kids, you know they will need vaccinations. For these items, we should be planning financially to pay for these. What we should be insuring against are things like cancer, heart attacks, or situations that can lead to hospitalization. With this change, you will see consumers shopping around and demanding better pricing. With this change in behavior, medical companies would have to compete more fiercely for your dollars, which would drive costs down.

While this addresses the third party payer issues from the actual medical purchase side of the issue, it still doesn’t address the third party payer side of the insurance purchase. Just as employers were encouraged to add health benefits via the tax code, they should now be encouraged to get out of the health care business. Businesses waste vast amounts of resources on the shopping, buying, and administering health care insurance for their employees. Does this add to their business production and to the larger production of our country? No it doesn’t. If employers handed the health care insurance purchasing decision to their employees, they would then be able to focus on what they do best, which is grow their businesses. They also would be relieved of a huge (huge really doesn’t do it justice) expense. This massive reduction in expenses would result in more jobs. There is no doubt that the cost of health care insurance has resulted in many companies not hiring that extra person. It’s a return on investment hurdle that is much higher as a result of the extra cost. In addition, the reduction in the cost of doing business would result in lower prices of the goods or services delivered by the company. As Thomas Sowell points out in his blog, Magic Numbers in Politics, prices are interconnected and the reduction in the price of one good filters through the economy and lowers the price of other goods. He uses a great example.

What does that mean? It means that a huge increase in the demand for ice cream can mean higher prices for catchers’ mitts, among other things.

When more cows are needed to produce more milk to make ice cream, then fewer cows will be slaughtered and that means less cowhide available to make baseball gloves. Supply and demand mean that catchers’ mitts are going to cost more.

via Thomas Sowell : Magic Numbers in Politics – Townhall.com.

As you can see, there would be a butterfly effect in the cost of goods in our entire economy. This would unleash business and job growth. “Hold up there buddy,” you say, “ultimately the worker would carry the burden of health insurance.” This is true, but as explained above, insurance is not meant to cover those things that are guaranteed to happen. If workers buy their own insurance, they will make wiser purchase decisions. They will plan for maintenance, and they will insure against the unknown. This will drive down the cost of health care insurance. In a future segment of this blog, I will expand on this more, but for now you can see the effect of this when seen in conjunction with the interconnectedness of prices. Also, the end user making day to day “maintenance” purchases will drive down the cost of those purchases. In May 2008, Watson Wyatt Worldwide released a study that argues that the rising cost of health care insurance is a huge factor of why employee pay has been stagnant for decades. With the removal of health insurance from the employment process, salaries would undoubtedly rise. Salary increases will also be the result of higher competition for employees. Many employees pick a job based on health insurance. With that removed from their decision, they will choose to go where the work and the salaries are better. They will also not be trapped in a job because they can’t afford to lose their insurance. They will have picked their own insurance, and it would not cease in the result of a change in employment status.

In the next segments of this blog on health care solutions, I will address the unique issues of health insurance that make it much more expensive, how our country’s obesity problem is a major factor in rising health care costs, and how the market has already taken steps in the right direction to address the rising costs. As you can see though, removing the market distortion of third party payer would be better for every part of our economy and every participant involved in health care purchasing. As I said in previous posts, when listening to the health care debate, ask yourself how the proposed solution addresses the root causes of rising costs. A government take over does not remove the third party payer issue, it does not increase competition, and it will actually increase costs. With out fierce competition, the only way for costs to be driven down is by mandate. The end result is a reduction in the availability of services and/or the quality of services.

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Health Care Reform – More lunacy brought to you by the Baucus Bill

Posted by Jason | Posted in Economics, Government, Health Care | Posted on 14-10-2009

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Yesterday, the Senate finance committee passed the Baucus bill, well wasn’t a bill, but a set of ideas. One only need to look at the new $507 billion in new taxes to see why government should leave the reform to the private sector. This bill will not only drive up demand, thus driving up costs, but it will also drive down supply and stunt job creation. Obviously, if supply is driven down, cost also go up, and without job creation people can’t afford health insurance anyways. Ok, so let’s take a look at these new taxes and see how they will affect the market. Below is a list of new taxes from CNSNews.com.

(CNSNews.com) – The health-care bill that the Senate Finance Committee will vote on today will cost a total of $829 billion over 10 years, with $507 billion of that cost being covered by new federal taxes and fees, according to the Congressional Budget Office (CBO).

These new taxes and fees include:

– $201 billion in new taxes on high-premium health care plans.

– $83 billion in new taxes paid by workers who will receive less employer-sponsored coverage or lose that coverage altogether but will be compensated with higher wages or monetary benefits, which are taxable.

– $23 billion in penalty fees paid by employers who do not comply with the federal insurance mandate.

– $4 billion in penalty fees paid by individuals who don’t have health insurance.

– $16 billion in new income and Medicare payroll tax revenue due to changes in Medicare.

– $180 billion in other tax revenues items calculated by the non-partisan Joint Committee on Taxation (JCT).

According to the JCT, this $180 billion in new taxes would include: A new tax on prescription drug makers that would account for $22.2 billion over 10 years; a new tax on medical device manufacturers that would bring in $38.6 billion; and a new annual tax on insurance companies would net the government $60.4 billion.

Also, a provision that raises the threshold at which medical expenses become tax deductible, from 7.5 percent of income to 10 percent of income, would reportedly yield the government $15.2 billion in new revenue from sick and disabled Americans with high out-of-pocket medical costs.

via CNSNews.com – Finance Committee Health Bill Includes $507 Billion in New Taxes and Fees.

Now let’s take each one of these taxes and see the law of unintended (let’s hope they are unintended) consequences in action.

The first tax is $201 billion on high-premium health care plans. These are the Cadillac plans that many union guys get. You know, the blue collar guys that supposedly the Democrats love to help. So, one must ask why would you tax these plans and what is the effect of the tax. One only needs to look at the cigarette tax to see the purpose. You tax cigarettes because you want to make it more expensive to smoke and thus drive down the number of people that smoke. Similarly, taxing these high-premium plans will increase the over all cost of them and dissuade companies that offer them from continuing to do so. This is the first example of the socialist principle that if we can’t all have a candy bar, none of us will have one. Because we can’t all have Cadillac health care plans, none of us will. Who does this help? This surely doesn’t help the average Joe. Hmmm, wonder if this applies to Congress’s Cadillac plan?

The second tax listed is $83 billion paid by workers who will receive less coverage from employers or lose coverage, but in turn will get paid more because the employer doesn’t have the insurance cost. Here we go again, with liberals looking out for the common man. The plan drives up the cost of insurance, which is likely to cause many companies, especially small businesses, to drop or reduce the health insurance plans for their employees. “No problem,” says the Baucus bill, “We’ll just tax you the worker.” These taxes are what they believe will be higher wages. The government is showing its hand here. It knows that all costs of an employee lowers the employees wages. Keep this in mind next time the government wants to tax the corporation more. Ok, back to this tax. So, when your employer drops your insurance, the government is betting you get a raise. You better hope they are right, because you’ll be mandated to buy your own insurance or pay a fine.

The third tax is $23 billion in fines paid by employers who don’t comply with the almighty state. OK, so now the government is back to raising the cost of your job to the employer. If you are the employer, is this going to increase your likely hood of hiring or decrease? Also, if you are an employer, you are going to compare the cost of the penalty compared to your current insurance costs. If the penalty is less, you are going to go with the penalty. The difference between fines and insurance costs is insurance costs grow ridiculous amounts every year, and fines will be a fixed cost. From a business planning stand point, that is a plus for going with the fines. So now, not only do you not have health insurance, but money that could be going to paying your more is being sent to the government with no benefit to you.

The fourth tax is $4 billion paid by YOU! That’s right, buy health insurance or pay the government. Isn’t freedom great? So, let’s wrap our heads around where we are right now. If you have awesome health insurance through your employer, the government is going to make it more expensive by taxing it. When you employer drops that, they are going to pay a penalty. Then you  have to hope you get a raise of which you’ll pay taxes on. If you deem you can’t afford to buy health insurance yourself, guess what, you will now pay a fine as well. There sure is a lot of spending going on here, with the end result being you still don’t have health insurance. If you are younger, you may still be better off paying these fines though and holding off on health insurance, because you can just wait till you are sick to buy into health insurance. What the heck, the government is preventing insurance companies from turning down anyone for any reason. Hey, they are just looking out for the common man. Thank your lucky stars!

How many more taxes do we have to go through. I’m starting to throw up a little in my mouth. OK, push through it! The next tax is $16 billion in new Medicare payroll tax due to changes in Medicare. I’ve tried to determine what the hell this means, but have been unable to find exactly what’s proposed here. It sounds like they would raise the payroll tax. If it’s raised on the portion you pay, you just got a tax increase. If it’s raised on the employer’s side, companies just got another reason not to hire or to pay you less.

The last part is a whopping $180 billion in other taxes. So what are these taxes? This is where you get some of the most ridiculous parts of the bill that will do the exact opposite of the the bill claims to do. So, $22.2 billion will be a new tax on drug makers, $38.6 billion on medical device manufactures, and $60.4 billion on insurance companies. So, let me guess, these companies are just going to swallow the crap the government just got shoved in their mouth. This is why politicians should stick to speeches and leave the market to the private sector. Companies don’t pay costs. Consumers pay costs. All of these taxes, drive up the cost of drugs, medical devices, and insurance. This is completely contradictory to what politicians say their goal is. Then again, maybe we just have their goals wrong. I’m guessing they know this, and in a few years they’ll come back and say, “See, the free market isn’t working. We now have to step in and take more control to bring these costs down.” If these taxes can’t be passed on to the consumer by some other legislation, the companies will not be able to meet their profit goals. If they cannot reach their profit goals, they will not make the products. Without the product, supply diminishes even more and drives up costs. So, you either have costs driven up by government induced cost burdens on the medical companies or you have costs driven up by a shrinkage in supply. Pick your poison!

The last one is just perfect. The government loves us so much that they want to make it more expensive if you have very high medical bills. If you have very high medical bills, chances are you are disabled or have a child that has a disability. Don’t worry the government is so compassionate, that is going to make you spend 10% of your income instead of 7.5% before you can get a tax deduction on it. Aww, they are so caring.

Hopefully, if you made it through this blog without vomiting, you see the that government is not trying to help people. They are setting up taxes and other penalties so later all the government zombies come back begging the government for more help. Of course, the government will gladly help out again until they get a nationalized health care system.

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