Snowe bails on “compromise” ObamaCare bill; Update: Baucus plan cuts Medicare

posted at 12:55 pm on September 16, 2009 by Ed Morrissey

Democrats in the Senate had hoped to get a fig leaf of bipartisanship from Olympia Snowe or Susan Collins (R-ME) once Max Baucus rolled out his supposedly moderate bill for overhauling the American health-care system.  Yesterday, Snowe rejected the bill, leaving Democrats isolated and divided on the bill, just days after Obama demanded action on the effort:

Senate Democrats are going to have to move forward on healthcare without a single Republican supporter after Sen. Olympia Snowe said Tuesday she could not back the Finance Committee’s bill.

Chairman Max Baucus (D-Mont.) failed to win any Republican backer despite weeks of intense negotiations behind closed doors to strike a deal.

Snowe (Maine), who was one of three Republicans who backed the $787 billion economic stimulus package, was being lobbied heavily by the White House, and some centrists view her refusal to strike a deal with Baucus as troubling. But concerns about how the plan would be paid for prompted her to back away in the hours before its release.

“I do have concerns and I’m not sure they can be addressed before he issues [legislation] tomorrow,” Snowe said.

This means that the Democrats will have to try reconciliation to get the bill through the Senate.  Snowe’s rejection, however, hides another unpleasant fact that would have been apparent, which is that Democrats don’t have all of the other 59 votes needed, either.  Other Democrats have already expressed unhappiness with individual mandates, IRS involvement, and the costs.

Baucus says he’s solved the funding problem, but his solution brings up another big problem.  He plans on taxing so-called Cadillac or gold-plated health insurance plans, but he defines that at $8,000 per year in premiums and above, as Jazz Shaw noted yesterday:

COST: Under $900 billion over 10 years.

HOW’S IT PAID FOR: Fees on insurance companies, drug makers, medical device manufacturers and insurers. Tax of 35 percent on insurance plans costing more than $8,000 for individuals and $21,000 for families, applied to premium amounts over the threshold. Cuts to Medicare and Medicaid. A fee on employers whose workers receive government subsidies to help them pay premiums. Fines on those who fail to get coverage.

Baucus wants to tax the overall cost of the plans, not the portion that employees pay through payroll contributions.  The average plan premium in the US is over $4800 per year for individuals and $13,300 for families.  The Kaiser Family Foundation report does not detail the distribution of plans over $5788/$16,000 respectively, but 18% of individuals and 20% of families have this more expensive coverage, which means that Baucus’ taxes will almost certainly hit more than the top 5% of families and individuals.

Does this mean Harry Reid will use the “reconciliation” process?  The Democrats are threatening it, but it’s a strategy fraught with risks.  All it takes is one Senator to go rogue on the floor and start withholding unanimous consent, and the Senate grinds to a halt.  Reid’s already complaining about Republicans slowing down the process, but he won’t be able to get anything done at all once a few Republicans begin demanding full bill readings, votes for process, and so on.

Expect the Democrats to go back to the drawing board in both chambers.  The longer these versions are on the table, the more unpopular they become.

Update: The Hill reports that the Baucus plan will cut Medicare:

Baucus’s measure would cost $856 billion over 10 years — far less than the $1 trillon-plus bills approved by four other congressional committees and less even than Baucus’s previous estimates. The price tag also falls below the $900 billion limit set by President Barack Obama.

The new costs would be fully offset by reductions in Medicare spending and by generating new revenue from an excise tax on health insurance companies that sell plans that cost more than $21,000 for families and more than $8,000 for individuals. Insurers, pharmaceutical companies, medical-device makers, clinical laboratories and hospitals would also pay fees.

Gee, didn’t Barack Obama claim that Medicare cuts were a “myth”?  Why, yes he did:

Robert Kocher of the National Economic Council debunks the myth that Health Insurance Reform would be financed by cutting Medicare benefits.

I wait with bated breath for Obama to denounce Baucus as a mythmaker, and for Jimmy Carter to denounce him as a racist.

Blowback

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TEN FOR ’10: WINNING WASHINGTON BY EMPOWERING AMERICANS
1) Taxpayers’ Bill of Rights (TABOR). Limit federal spending growth to the percentage in population growth plus the rate of inflation; provide taxpayers the option of filing a post-card sized return using a low, flat tax rate of 25%

2) End Tax-funded abortions. Stop federal payments to Planned Parenthood and prohibit any taxpayer-subsidized health insurance plan from covering abortion

3) Defend American Borders. Complete America’s border-protection initiatives using remaining funds from the so-called stimulus bill

4) King Dollar. Preserve a strong dollar so that Americans’ savings aren’t wiped out by inflation and the U.S. dollar remains the world’s reserve currency

5) Empower American Business. Immediately slash corporate tax rates to 15% and scrap the corporate capital-gains tax altogether

6) Defend America. Strengthen America to defend our homeland and fully fund an operational, layered missile-defense system

7) Statism Exit Plan. De-fund czars; immediately cease bailout payments to failed companies; ban future bailouts

8) End Generational Theft. As few believe America’s entitlement programs will be able to pay benefits to future generations, provide younger workers the choice of diverting payroll/Social Security taxes into personal retirement accounts

9) Restore America’s System of Justice. Introduce British-style penalties for frivolous lawsuits, where those who launch unsuccessful lawsuits are liable for the defendants’ legal bills

10) American Energy Independence. All-of-the-Above strategy that embraces alternatives, expands and accelerates exploration and production of oil and natural gas, and jumpstarts dramatic increases in nuclear

Kuffar on September 16, 2009 at 1:32 PM

Gatorboy,

It is your manner of weak thinking that leads to the election of morons. A tax on insurance companies is paid by us because premiums will go up to cover the cost of the tax.

Companies do not pay taxes. The customer pays the tax via higher prices.

Sheerq on September 16, 2009 at 1:32 PM

Is there an exception to the excise tax on “cadillac plans” for unions as there was in the earlier bills?

What bones are Dems throwing to core constituencies?

Crickets on tort reform?

I see a huge vacuum. The GOP should savage this thing. Identify the issues that need to be solved. Show how the Baucus plan tries to address them. And offer a sensible solution that voters will go for. Beyond that, show the Dem idiocy of trying to pay for this with taxes and fees and imaginary savings that Dems will never find because too many of them are gaming the system anyway–see ACORN, as a Dem example.

Burn it at a stake.

BuckeyeSam on September 16, 2009 at 1:33 PM

There’s no public option and there’s no illegal immigrant coverage and there’s a requirement for people (other than illegal immigrants, I suspect) to have insurance so they don’t get free coverage at emergency rooms and cost us all more money. What’s wrong with that?

Jimbo3 on September 16, 2009 at 1:21 PM

Those are mere talking points. As with any complex legislation, the devil is in the details that will be emerging.

ICBM on September 16, 2009 at 1:34 PM

So besides killing everyone with taxes and not just the “rich”, how exactly will this be different than HR 3200?

cadams on September 16, 2009 at 1:36 PM

Settle down. That 35% tax is to be paid by the insurance company, not the insured… silly nitwits,

gatorboy on September 16, 2009 at 1:11 PM

ummmm, hate to give you the bad news, but companies don’t make their own money, whatever money they pay out, comes from their customers…silly nitwit…you don’t know that?

right2bright on September 16, 2009 at 1:37 PM

There’s no public option and there’s no illegal immigrant coverage and there’s a requirement for people (other than illegal immigrants, I suspect) to have insurance so they don’t get free coverage at emergency rooms and cost us all more money. What’s wrong with that?

Jimbo3 on September 16, 2009 at 1:21 PM

If you think illegals will suddenly stop getting the ER care they get now, you truly are an idiot.

Chuck Schick on September 16, 2009 at 1:37 PM

How long till Obama comes out embracing Co-Ops and dumping the public option to try and gain bi-partisian support?

jp on September 16, 2009 at 1:37 PM

these people will put the illegals back in once they all huddle to get the bill re-drafted for the other side of Congress.

these people are not to be trusted. none of them. and i say that about Randy Forbes who is probably the best of the best of Congressman (R,4th CD, Va). retire ‘em all.

kelley in virginia on September 16, 2009 at 1:38 PM

Crickets on tort reform?

Actually, the Baucus proposal does a bang-up job on tort reform. Look to page 177 where an entire section is devoted to this all important topic:

SUBTITLE H—SENSE OF THE SENATE REGARDING MEDICAL MALPRACTICE

Current Law
No provision.

Chairman’s Mark
The Chairman‘s Mark would express the Sense of the Senate that health care reform presents an opportunity to address issues related to medical malpractice and medical liability insurance. The Mark would further express the Sense of the Senate that states should be encouraged to develop and test alternatives to the current civil litigation system as a way of improving patient safety, reducing medical errors, encouraging the efficient resolution of disputes, increasing the availability of prompt and fair resolution of disputes, and improving access to liability insurance, while preserving an individual‘s right to seek redress in court. The Mark would express the Sense of the Senate that Congress should consider establishing a state demonstration program to evaluate alternatives to the current civil litigation system.

So, if adopted, the Sense of the Senate says that its a good time to address those issues and that we wish the states good luck in that since we as a senate body don’t have the gonads to do anything about it ourselves – lest we risk upsetting the apple cart which helps provide our campaign financing.

gatorboy on September 16, 2009 at 1:38 PM

I see a huge vacuum. The GOP should savage this thing.

Identify the issues that need to be solved. Show how the Baucus plan tries to address them. And offer a sensible solution that voters will go for. Beyond that, show the Dem idiocy of trying to pay for this with taxes and fees and imaginary savings that Dems will never find because too many of them are gaming the system anyway–see ACORN, as a Dem example.

Burn it at a stake.

BuckeyeSam on September 16, 2009 at 1:33 PM

They have, it is called H.R. 3400…that is the Republican answer and solution.

right2bright on September 16, 2009 at 1:38 PM

kill the bill.

that is our message. its not a partisan thing. just kill it.

kelley in virginia on September 16, 2009 at 1:39 PM

Baucus’s measure would cost $856 billion over 10 years — far less than the $1 trillon-plus bills approved by four other congressional committees and less even than Baucus’s previous estimates. The price tag also falls below the $900 billion limit set by President Barack Obama.

Cash for Clunkers and $8,000.00 credit for fisrt-time home buyers….These programs costed or will more than earlier projections……Was the $856 Billion over 10 years determined by an independant firm or untrusted representatives?

BigMike252 on September 16, 2009 at 1:39 PM

There’s no public option and there’s no illegal immigrant coverage and there’s a requirement for people (other than illegal immigrants, I suspect) to have insurance so they don’t get free coverage at emergency rooms and cost us all more money. What’s wrong with that?

Jimbo3 on September 16, 2009 at 1:21 PM

1) Adding another bureaucratic layer, public atop the private, to the healthcare process cannot reduce costs. Forget cost estimates and projections from any source, they don’t matter. You have a doctor, a nurse, a book-keeper, and an insurance agent now. They aren’t going away. Tell me how adding the salary of a bureaucrat to the equation reduces costs? Over-simplification? Or obfuscation from the bureaucrat contingent trying to sell you the plan?

2) I don’t want that bureacrat sticking his nose into my medical affairs. Period. To be honest, I would rather kill him.

Doorgunner on September 16, 2009 at 1:40 PM

You’re paying those premiums on the individual markets. You’re risk isn’t pooled in a group in your policy. If you were getting a group plan, the overall costs would be significantly lower. That’s why the $8K for an individual makes sense in this context.

Wrong! I have group health insurance. The cost, for a $5000 per person deductible, is $21,600 for a family of three. Actually, I dumped my child this year and so am now paying $16,800 for an employee and spouse. The group has ONLY 600 members and because the cost and the loss of younger people in the group, they started basing premiums on age. My husband is 57, so we pay more than a 45 year old. I understand it, but…how much longer can we afford it. It typically increases 10%+ per year.

If I start having to pay a tax on a “cadillac” $5000 deductible plan, I might have to stop filing taxes or start lying about my income, or quit buying insurance.

bopbottle on September 16, 2009 at 1:40 PM

No, illegals will still get ER care. That’s what I wrote. I don’t understand why the Dems and GOPs didn’t require everyone (illegal or not) in this country to buy insurance. That would be preferrable in my view to the current situation in the bill where illegals aren’t allowed to buy insurance on the exchanges.

From another thread: The problems with H.R. 3400 is (i) it doesn’t require insurers to eliminate pre-existing condition exclusions or prohibitions; (ii) it doesn’t require insureres to issue policies to people with pre-existing conditions or exclusions; (iii) it only provides a tax credit to poor people who are forced into the high risk pool, rather than poor people who can’t afford their employer’s insurance; (iv) it generally allows the purchase of insurance from out-of-state companies if your home state premiums are 10% higher than the national average (so you might not be able to access those out-of-state insurers, anyways); and (v) a group of doctors–not representatives of the US as a whole–would be able to recommend when non-economic damages (like pain and suffering) would be excluded.

Here’s a link to the summary for HR 3400: http://covertheuninsured.org/legislative_bill/hr-3400-price.

Jimbo3 on September 16, 2009 at 1:40 PM

gatorboy on September 16, 2009 at 1:38 PM

A lot of confusion about your 1:11 sarcasm.

BadgerHawk on September 16, 2009 at 1:40 PM

I am very much in favor of this bill, and, I suspect, you’ll find that 55% of the voting public will be as well with the public option and abortion funding and illegal immigrant issues now out of the picture.

Jimbo3 on September 16, 2009 at 1:16 PM

I suspect you must have awoken from a coma. The bills have been out there too long. The filthy liar in the White House is facing his biggest challenge in getting this legislation passed- an educated public. There is nothing in any of the legislation that would exclude illegals (and no mechanism to check residency status). Co-ops are nothing but traps to make the public option a fact in a very few years after the government has forced private insurance out of the market. Abortions will be funded with federal dollars because of the bizarre way they seek to circumvent the Hyde Amendment with co-mingled contributions that are impossible to seperate in the accounting. And the elephant in the room is that it is physically impossible to provide coverage to millions more without taxes going up and benefits being cut.

Face it, the filthy liar blew it on this attempt at seizing healthcare. He and Congress need to start from scratch and build a sensible plan for insurance reform or whatever else is needed. Tossing out HR3200 would be the most Presidential thing the filthy liar has done so far in his failed administration.

highhopes on September 16, 2009 at 1:40 PM

right2bright – was Baucus arrested? Perhaps you’re thinking of Congressman Denny Rehberg (R-MT) that was involved in a boating accident over Labor Day where his blood level was less than what is considered drunk. He wasn’t driving the boat, he was a passenger. Believe the driver was a Mt. congressman and his blood lever did test positive.

24K lady on September 16, 2009 at 1:41 PM

While searching the “enemies” I found this at an MSNBC website of all places:

*** How did you get from $300 billion to $500-$600 billion: Speaking of health care, how has Obama gone from touting $300 billion in Medicare waste/fraud/abuse savings in June as part of his plan to pay for health care to now claiming the White House has found $500-$600 billion in these savings. The fact is the president still hasn’t release a detailed plan in general, let alone gotten into the “how to pay for” weeds when it comes to exactly how they found yet another $200 billion in cuts. This actually gets at the nut of the president’s potential credibility problem: If there is so much money in waste/fraud/abuse in the Medicare system, then why do we continue to let it happen? Why are we waiting so long to deal with it? The average cynical voter is thinking, “Well, the president may be well meaning, but the bureaucracy that is the American government let this waste/fraud/abuse happen once, who is to say they won’t let it happen again?”

Some one’s going to get fired asking these “reasonable” questions.

Rovin on September 16, 2009 at 1:42 PM

So, if adopted, the Sense of the Senate says that its a good time to address those issues and that we wish the states good luck in that since we as a senate body don’t have the gonads to do anything about it ourselves – lest we risk upsetting the apple cart which helps provide our campaign financing.

gatorboy on September 16, 2009 at 1:38 PM

Well we destroyed you last post…might as well this one.
Addressing tort reform is not “encouraged to develop and test alternatives to the current civil litigation system as a way of improving patient safety, reducing medical errors, encouraging the efficient resolution of disputes, increasing the availability of prompt and fair resolution of disputes…”, it says nothing about limiting. It only says they are “encouraged” to investigate. Not demanding to take action.
They can look all they want, they have been looking for the past 50 years…looking does nothing, their is no teeth.
Do you support H.R. 3400?

right2bright on September 16, 2009 at 1:42 PM

BadgerHawk,
Tricare is less than $1000 per year.

exhelodrvr on September 16, 2009 at 1:43 PM

I don’t know what benefits you have, bopbottle. I know the unsubsidized COBRA cost for a pretty good Aetna plan for a family (2 adults-one in his 50s, 2 kids) was about $1400/month two years ago and it’s my understanding that COBRA charges are a little more than the employer’s actual costs.

Jimbo3 on September 16, 2009 at 1:43 PM

Keep the baby, and throw out the bathwater. Fix pre-existing conditions, expand insurance pools, and send the poor uninsured to government sponsored free clinics.

These liberals have already spent us into the poor house, and they don’t seem to care at all. Now they want to throw out the baby with the bathwater by undermining the best health care system in the world because they can’t control their own Medicare system.

Smoke and mirrors:slight of hand. Why don’t they deal with fixing waste and corruption first? It may catch on and help them clean up all their flagrant messes.

saiga on September 16, 2009 at 1:43 PM

these people will put the illegals back in once they all huddle to get the bill re-drafted for the other side of Congress.

kelley in virginia on September 16, 2009 at 1:38 PM

Problem is that Illegals not having coverage is part of the problem… so their solution is to get them insurance… but to do that WE are going to have to pay for it… which the Right has a HUGGGEEE problem with…

So, that solution is a non starter…

Its like the Coverage for Pre existing conditions. It only can work if EVERYONE HAS to have Coverage. Otherwise you just wait until you get sick, then get covered… But once again it Can’t work unless you can FORCE everyone to be covered… which they can’t…

Whole debate is postulated on things which just plain won’t work UNLESS you have a single payer system, which is their endgame anyway.

Romeo13 on September 16, 2009 at 1:43 PM

How long till Obama comes out embracing Co-Ops and dumping the public option to try and gain bi-partisian support?

jp on September 16, 2009 at 1:37 PM

Co-ops are nothing more than the public option under a different name. Don’t be fooled that there is a practical difference between the two.

highhopes on September 16, 2009 at 1:44 PM

I thought her house landed on her back in Oz, “The Way Life Should Be”

Hening on September 16, 2009 at 1:44 PM

No, illegals will still get ER care. That’s what I wrote. I don’t understand why the Dems and GOPs didn’t require everyone (illegal or not) in this country to buy insurance. That would be preferrable in my view to the current situation in the bill where illegals aren’t allowed to buy insurance on the exchanges.

Jimbo3 on September 16, 2009 at 1:40 PM

Gee, is it because these people are UNDOCUMENTED so finding and enforcing tax collection, let alone mandatory health insurance, will never work?

Chuck Schick on September 16, 2009 at 1:44 PM

http://www.washingtonpost.com/wp-dyn/content/article/2009/09/16/AR2009091601151_2.html?wpisrc=newsletter&sid=ST2009091601167

From the Washington Post writeup on the Baucus plan:

The plan would not require employers to offer health insurance, but starting Jan. 1, 2013, all employers with more than 50 workers would have to reimburse the government if they did not offer coverage. The reimbursement for each full-time employee receiving a health-care affordability tax credit would amount to 100 percent of the average exchange subsidy, “up to a cap of $400 per total number of employees whether they are receiving a tax credit or not.”

So, a company of more than 50 employees that now provides health insurance for its employees would simply pay $400 a head to the Government and dump the private insurance. How much health insurance can anyone buy for $400 a year? This would result in at least half the country on the Government plan within a year!

And this would be in 2013, when Barack Obama’s successor begins his/her term, and gets blamed for the massive increases in health care costs and massive bankruptcies in the insurance industry. Just brilliant!!! (sarc)

This is the stuff of which Tea Parties are made…

As for the 35% excise taxes on policies costing over $21,000 per family, what’s to prevent an insurance company from lowering the cost to $20,999 per family to avoid a whopping $7,350 tax?

To avoid such “edge effects”, Baucus could tax the amount in excess of $21,000 per family, but then he would raise $7,350 less per family on the expensive policies.

Steve Z on September 16, 2009 at 1:45 PM

One of the ideas that won him the election was opposition to McCain’s idea of taxing workers’s health insurance policies. American voters are so stupid.

HellCat on September 16, 2009 at 1:45 PM

Settle down. That 35% tax is to be paid by the insurance company, not the insured… silly nitwits,

gatorboy on September 16, 2009 at 1:11 PM

Spoken like a true Democratic senator or representative.

Hening on September 16, 2009 at 1:45 PM

If I start having to pay a tax on a “cadillac” $5000 deductible plan, I might have to stop filing taxes or start lying about my income, or quit buying insurance.

bopbottle on September 16, 2009 at 1:40 PM

Don’t discount Baucus’ proposal which sets these premium amounts and weights age 5:1… good times ahead I’m sure /s

gatorboy on September 16, 2009 at 1:45 PM

5) Empower American Business. Immediately slash corporate tax rates to 15% and scrap the corporate capital-gains tax altogether
Kuffar on September 16, 2009 at 1:32 PM

I’d go the other way: eliminated the corporate profit tax, and keep the capital-gains tax low.
Actually, I think we should lump investments into an account for each person, and then only tax the net amount of money moved out of the account (as personal income).

Count to 10 on September 16, 2009 at 1:46 PM

The force is weak in Obi Won Obama these days.

I can live with that.

Bob's Kid on September 16, 2009 at 1:46 PM

right2bright – was Baucus arrested? Perhaps you’re thinking of Congressman Denny Rehberg (R-MT) that was involved in a boating accident over Labor Day where his blood level was less than what is considered drunk. He wasn’t driving the boat, he was a passenger. Believe the driver was a Mt. congressman and his blood lever did test positive.

24K lady on September 16, 2009 at 1:41 PM

It was state Senator Barkus the driver, not Senator Baucus…my error, thanks.

right2bright on September 16, 2009 at 1:47 PM

Politicians are so stupid. High price-elasticity of demand will completely derail the revenue they’re projecting from taxing more expensive plans.

When they want to reduce consumption of something (cigarettes, alcohol), they understand that taxing it will achieve the desired effect. When they want to tax something to fund another of their grand schemes, it seems as though they’ve never taken Economics 101.

The whole lot of them really need to be banned from their foolish social engineering efforts, and government should be reduced in scope to those few things envisioned by the Founding Fathers.

mr.blacksheep on September 16, 2009 at 1:47 PM

A lot of confusion about your 1:11 sarcasm.

BadgerHawk on September 16, 2009 at 1:40 PM

lol. true true. but at least a few anonmymous posters feel like they made a difference. I’ll try to post /s more often and avoid coming across as an obamabooster

gatorboy on September 16, 2009 at 1:48 PM

Now the Republicans are strongly against Medicare cuts?

The Dean on September 16, 2009 at 1:49 PM

So, a company of more than 50 employees that now provides health insurance for its employees would simply pay $400 a head to the Government and dump the private insurance. How much health insurance can anyone buy for $400 a year? This would result in at least half the country on the Government plan within a year!

Not exactly.

Baucus plan would take the lesser of:
1) $400 x # of employees
2) Actual cost x rebated employees

Example in the bill:
100 employees. 30 rebated employees.

1) results in $40,000 ($400 x 100 employees)
2) results in $90,000 ($3000 cost x 30 participants in the **cough cough** public option)

So company is on the hook for $40,000 which is less than the $90,000. See, government is so friendly to business. /s

gatorboy on September 16, 2009 at 1:52 PM

Now the Republicans are strongly against Medicare cuts?

The Dean on September 16, 2009 at 1:49 PM

no – just following Alinsky’s rule of holding the Dems accountable to their own rules

gatorboy on September 16, 2009 at 1:53 PM

Now the Republicans are strongly against Medicare cuts?

The Dean on September 16, 2009 at 1:49 PM

Most of us will evaluate the bill on its entirety, and not one piece of it.

ICBM on September 16, 2009 at 1:53 PM

I don’t know what benefits you have, bopbottle. I know the unsubsidized COBRA cost for a pretty good Aetna plan for a family (2 adults-one in his 50s, 2 kids) was about $1400/month two years ago and it’s my understanding that COBRA charges are a little more than the employer’s actual costs. Jimbo3 on September 16, 2009 at 1:43 PM

Actually, it might be a little like a Co-Op. It is a group of small businesses that belong to a professional organization and can get group benefits. It is Preferred Health Systems, which is a large Kansas insurer, and they are a great company to work with. I have no complaints about the insurance company. But, I sure don’t think they should be taxing cadillac plans, based on the cost of the plan. If they think the cost of the plan indicates the type of coverage, they are ignorant. If senators are so stupid to believe high cost means cadillac benefits, they have no business making decisions about healthcare. They need to do a little more research.

bopbottle on September 16, 2009 at 1:54 PM

What’s wrong with that?
Jimbo3 on September 16, 2009 at 1:21 PM

This ain’t the Regno d’Italia, and I won’t pay Il Duce.

Chris_Balsz on September 16, 2009 at 1:55 PM

A lot of confusion about your 1:11 sarcasm.

BadgerHawk on September 16, 2009 at 1:40 PM

lol. true true. but at least a few anonmymous posters feel like they made a difference. I’ll try to post /s more often and avoid coming across as an obamabooster

gatorboy on September 16, 2009 at 1:48 PM

If I didn’t recognize gatorboy’s name, I would have thought it was serious. It sounded like true Obamabot-think.

forest on September 16, 2009 at 1:55 PM

Baucus’ plan also addresses hot button issues including abortion, illegal immigrants and medical malpractice.

According to the summary, the bill would not pre-empt state laws banning or requiring abortion coverage. Federal tax dollars, as under current law, would not be used to pay for abortions unless the pregnancy results from rape or incest or if the life of the mother is in danger.

The measure aims to prevent illegal immigrants from using health care tax credits or accessing insurance exchanges in part by requiring each potential beneficiary to submit a range of personal information that would need to be verified by Social Security Administration data.

–highhopes, you haven’t read the new bill,have you?

Jimbo3 on September 16, 2009 at 1:58 PM

Most of us will evaluate the bill on its entirety, and not one piece of it.

ICBM on September 16, 2009 at 1:53 PM

Which is why the filthy liar’s claims of being able to get millions in savings through the elimination of fraud and waste in Medicare is so offensive. The filthy liar and his corrupt party needed to be able to present a coherent plan that, at least on paper, looked attainable. Obamacare is not that plan. Never was and never will be.

My solution is to change the eligibility for Medicaid to close the so-called insurance gap, find the funding for that, and call it a day.

highhopes on September 16, 2009 at 2:00 PM

lol. true true. but at least a few anonmymous posters feel like they made a difference. I’ll try to post /s more often and avoid coming across as an obamabooster

gatorboy on September 16, 2009 at 1:48 PM

No, there was no confusion, you posted what you thought and believed then was told differently.
You had a chance to recant but you followed it up with another post.
If it was sarcasm, then it was poorly delivered….if….

right2bright on September 16, 2009 at 2:04 PM

The measure aims to prevent illegal immigrants from using health care tax credits or accessing insurance exchanges in part by requiring each potential beneficiary to submit a range of personal information that would need to be verified by Social Security Administration data.

–highhopes, you haven’t read the new bill,have you?

Jimbo3 on September 16, 2009 at 1:58 PM

There is no requirement to provide proof of citizenship. Only that they have “legal” residence.
And of course with 60 votes, “legal” will be easy to define…

right2bright on September 16, 2009 at 2:07 PM

Awesome!

balkanmom2 on September 16, 2009 at 2:07 PM

How many illegals work on the books anyway? I don’t see how they can ever force them to buy insurance, especially when they work off the grid in the first place? They will still get free care and yet fail to pay taxes on earnings. Nannies, self employed gardeners, housekeepers – very few report income.

24K lady on September 16, 2009 at 2:08 PM

Co-ops are nothing more than the public option under a different name. Don’t be fooled that there is a practical difference between the two.

highhopes on September 16, 2009 at 1:44 PM

Not necessarily. CO-OPs can be nothing more than large pools functioning like a large compay negotiating insurance prices by taking bids. The problem is the members control the CO-OP which complicates administration. Too many cooks spoil the broth. CO-OP anministrators are basically elected/hired, and it takes strong leadership to “heard the cats” in the Co-Op, but very doable.

saiga on September 16, 2009 at 2:08 PM

Tricare is less than $1000 per year.

exhelodrvr on September 16, 2009 at 1:43 PM

That sounds about right. It’s not very good coverage.

Thanks.

BadgerHawk on September 16, 2009 at 2:22 PM

***
Kill Bill. Vote RINO’s and DimocRATS out.
***
Succinct always works for me.
***
John Bibb
***

rocketman on September 16, 2009 at 2:27 PM

BadgerHawk,
Over the years we have been very happy with TriCare; both while on active duty and since retirement.

exhelodrvr on September 16, 2009 at 2:30 PM

Excise Tax. The consequence for not maintaining insurance would be an excise tax. If a taxpayer‘s MAGI is between 100-300 percent of FPL, the excise tax for failing to obtain coverage for an individual in a taxpayer unit (either as a taxpayer or an individual claimed as a dependent) is $750 per year. However, the maximum penalty for the taxpayer unit is $1,500. If a taxpayer‘s MAGI is above 300 percent of FPL the penalty for failing to obtain coverage for an individual in a taxpayer unit (either as a taxpayer or as an individual claimed as a dependent) is $950 year. However, the maximum penalty amount a family above 300 percent of FPL would pay is $3,800.

So, you have to have insurance, or pay higher taxes, BUT the Tax is MUCH lower than you would pay in premiums.

Thus, you don’t have insurance, pay the tax UNTIL you get sick… then get insurance which MUST cover your pre existing condition… get treated, get well, and drop the insurance and once more… pay the Tax…

DUMB DUMB DUMB.

Romeo13 on September 16, 2009 at 2:31 PM

I benefit from the full premium amount, not just my share. A few years ago I paid 600 per month for COBRA (then not subsidized), so over $7k per year. My plan now has similar coverage (my employer generously pays the full premium; technically they self-insure, but the value would likely be assessed the same).

So if my plan is worth $10k per year, I would pay 28% of $2k, $560. Or, rather, I would not get a tax deduction on that $2000, so my take home pay would decrease by $11 per week. This is the McCain plan which I supported. I shall not complain about this plan based on this part of it.

Rather, I shall focus on whether it delivers better affordability to everyone, and results in more being covered. If for $11 per week out of my pocket the plan results in my self-employed brother-in-law not paying thousands per month for his family insurance, and doesn’t take away my mother’s and father’s Medicare Advantage options, then it’s a bargain. Let’s start reading.

raybury on September 16, 2009 at 2:32 PM

Tricare is less than $1000 per year.

exhelodrvr on September 16, 2009 at 1:43 PM

thats only our portion… most of the cost is subsidized by the Government… which would be considered our “employer” under this?

Don’t know how much the Gov pays for our coverage…

Romeo13 on September 16, 2009 at 2:33 PM

DUMB DUMB DUMB.

Romeo13 on September 16, 2009 at 2:31 PM

Sums it up nicely.

mr.blacksheep on September 16, 2009 at 2:34 PM

Just speed Read the bill…

Specificly says Illegals do NOT have to have coverage, but does NOT take away the requirement for Emergency Rooms to treat everyone. So illegals still drain the system.

Does NOT help those who are self employed, or work as contractors, as it still does NOT give an individual the same tax benefit for Health coverage as employers get.

Dumb and Dumber…

Romeo13 on September 16, 2009 at 2:37 PM

BTW, Ed, you’re a Maxine Waters’ target, repeating “ObamaCare”.

maverick muse on September 16, 2009 at 2:45 PM

The entire healthcare/health insurance debacle is one I personally refute.

Unless someone can show me where in the Enumerated Powers of our Constitution the Govenment is empowered to dictate health insurance, or nationalizing car companies,etc, then you can park this misbegotten pile of bullcrap.

The only further involvment on my part is going to be a vehement NO vote on any aspect that promulgates government interference in what is the private sectors sphere.

irongrampa on September 16, 2009 at 2:46 PM

Have you guys figured this out yet?

None of these reforms have anything to do “reforming” the subject program. It is all about one thing: Revenue. Pure and simple, all of these reforms are targeted at increasing the Federal take.

“If you’re gonna spread the wealth around, you first need to get it……”

BobMbx on September 16, 2009 at 2:49 PM

Romeo,
“thats only our portion… most of the cost is subsidized by the Government… which would be considered our “employer” under this?

Don’t know how much the Gov pays for our coverage…”

I know, but from the user perspective we have been very happy with it.

exhelodrvr on September 16, 2009 at 2:49 PM

I’d still like to know where they’d expect to get this 900 billion in additional debt?

TKSnider on September 16, 2009 at 2:49 PM

Does NOT help those who are self employed, or work as contractors, as it still does NOT give an individual the same tax benefit for Health coverage as employers get.

–It does help self employed and contractors a benefit: They’ll be able to (or have to) purchase coverage without having to worry about pre-existing conditions. I know several independent contractors that have to use the Texas high risk pool to buy health insurance. Their rates will drop.

Jimbo3 on September 16, 2009 at 2:49 PM

Its starting to look like socialized healthcare is circling the bowl, as well it should.

dogsoldier on September 16, 2009 at 2:54 PM

The entire healthcare/health insurance debacle is one I personally refute.

Unless someone can show me where in the Enumerated Powers of our Constitution the Govenment is empowered to dictate health insurance, or nationalizing car companies,etc, then you can park this misbegotten pile of bullcrap.

The only further involvment on my part is going to be a vehement NO vote on any aspect that promulgates government interference in what is the private sectors sphere.

irongrampa on September 16, 2009 at 2:46 PM

I actually argue the other direction myself. I appologize for the wall of text ahead of time :) I’ll copy from my own blog, rather than linking to it. And no, I’ve not written any other aspects of the series yet, plan do another one soon though.

Let us discuss 111 HR 3200, otherwise known as “America’s Affordable Health Choices Act of 2009” in this update. I am going to start a series on this bill that covers numerous issues that have been raised with the bill itself.

The first thing we need to discuss is the right of congress to actually have this bill. I cannot find any reference to the federal government having the right to create such a system. I’ve heard Article 1, Section 8 used as justification, so we will address that passage. I am sure this is the section of that passage that they are considering to be the qualifying entry, as no other power within that section even mentions such an event. I want you to take note of the punctuation at the end, it is significant to the discussion.

“The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defense and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;”

But what does this passage mean and how was it used by those who wrote and argued for our constitution. Fortunate for us, we have the Federalist Papers to help in that regard. In The Federalist Papers, number 41, Madison himself explains how this was to be interpreted, even references the aforementioned punctuation mark.

Some, who have not denied the necessity of the power of taxation, have grounded a very fierce attack against the Constitution, on the language in which it is defined. It has been urged and echoed, that the power “to lay and collect taxes, duties, imposts, and excises, to pay the debts, and provide for the common defense and general welfare of the United States,” amounts to an unlimited commission to exercise every power which may be alleged to be necessary for the common defense or general welfare. No stronger proof could be given of the distress under which these writers labor for objections, than their stooping to such a misconstruction.

Had no other enumeration or definition of the powers of the Congress been found in the Constitution, than the general expressions just cited, the authors of the objection might have had some color for it; though it would have been difficult to find a reason for so awkward a form of describing an authority to legislate in all possible cases. A power to destroy the freedom of the press, the trial by jury, or even to regulate the course of descents, or the forms of conveyances, must be very singularly expressed by the terms “to raise money for the general welfare”.

But what color can the objection have, when a specification of the objects alluded to by these general terms immediately follows, and is not even separated by a longer pause than a semicolon? If the different parts of the same instrument ought to be so expounded, as to give meaning to every part which will bear it, shall one part of the same sentence be excluded altogether from a share in the meaning; and shall the more doubtful and indefinite terms be retained in their full extent, and the clear and precise expressions be denied any signification whatsoever? For what purpose could the enumeration of particular powers be inserted, if these and all others were meant to be included in the preceding general power? Nothing is more natural nor common than first to use a general phrase, and then to explain and qualify it by a recital of particulars. But the idea of an enumeration of particulars which neither explain nor qualify the general meaning, and can have no other effect than to confound and mislead, is an absurdity, which, as we are reduced to the dilemma of charging either on the authors of the objection or on the authors of the Constitution, we must take the liberty of supposing, had not its origin with the latter.

In short, the general welfare is those things that are enumerated following the section’s general statement. Things like borrowing money, regulating foreign trade, the printing and regulation of money, and those so described in section 8. Nowhere in this section is the regulation of health care and/or health insurance listed.
In The Federalist Papers, number 30, we have a different statement, but it must be applied to the one above, which is indeed the clarifier.

How is it possible that a government half supplied and always necessitous, can fulfill the purposes of its institution, can provide for the security, advance the prosperity, or support the reputation of the commonwealth? How can it ever possess either energy or stability, dignity or credit, confidence at home or respectability abroad? How can its administration be anything else than a succession of expedients temporizing, impotent, disgraceful? How will it be able to avoid a frequent sacrifice of its engagements to immediate necessity? How can it undertake or execute any liberal or enlarged plans of public good?

Remember above where it discusses that those items of general welfare are in fact those items thus enumerated in Article 1, Section 8? How can these two statements be reconciled? It is really far simpler than it appears. When you look at what they were referencing as general welfare, you can find that in some cases those can be concluded to be liberal and/or enlarged plans of public good. The post office is an example of this, it is definitely an enlarged plan of public good, but it is also an enumerated power from the constitution. The establishment of post roads is another, we would be more likely to call this our interstate system, which is highly supported by the government, but is also enumerated as an power of congress. But these are things that must continue to be provided even in times of war and/or a shortage of funds, thus the authority to tax in their regard. In short, the constitution is a list of things the government is allowed to do and it is an all inclusive list, if it is not listed, they do not have the authority to pass it into law. As I see it, 111 HR 3200 is not a valid bill, as congress does not have the authority to regulate our liberty beyond their enumerated powers.

This does not mean that the system is we have now is good, but 111 HR 3200 isn’t the answer and no amount of patching will fix that the bill is completely unconstitutional, even at its root idea. It may not even be a problem that can be fixed at the federal level and would need to be fixed on a state by state basis.

TKSnider on September 16, 2009 at 3:00 PM

I know several independent contractors that have to use the Texas high risk pool to buy health insurance. Their rates will drop.

Jimbo3 on September 16, 2009 at 2:49 PM

Well by all means, if it helps a few people you know, let’s charge right on ahead. Meanwhile everyone else’s insurance gets less affordable. Policy is about balancing interests, in case you didn’t know.

I have not read the bill yet but if the excerpts I’ve seen are correct, the incentives look out-of-whack in a number of ways. In particular if the “pay” option for employers is too cheap, they’ll drop a lot of people’s coverage; and if the mandate penalty is too cheap (combined with coverage for all preexisting conditions) people will only buy insurance when they get sick.

DrSteve on September 16, 2009 at 3:00 PM

know several independent contractors that have to use the Texas high risk pool to buy health insurance. Their rates will drop.

Jimbo3 on September 16, 2009 at 2:49 PM

Except that they WON”T buy insurance, until they get sick, because its only a $750-1500 dollar Excise Tax to NOT have insurance.

Thus, the insurance Pool, will NOT expand… those who have insurance will still end up paying for the entire system…

And as pointed out, there is NO provision in this to change the Law that says Emergency Rooms HAVE to provide services…

AND it specificly says Illegals do NOT need to be covered…

Ergo, the two LARGEST groups of uninsured, Illegals and those who can’t AFFORD coverage and thus choose not to get it, will still not have insurance.

Whole plan is a bust.

Romeo13 on September 16, 2009 at 3:14 PM

No, illegals will still get ER care. That’s what I wrote. I don’t understand why the Dems and GOPs didn’t require everyone (illegal or not) in this country to buy insurance.

Not a big fan of freedom I see.

I have a better, more logical solution…..stop requiring emergency rooms to give free care.

xblade on September 16, 2009 at 3:15 PM

Excise Tax. The consequence for not maintaining insurance would be an excise tax. If a taxpayer‘s MAGI is between 100-300 percent of FPL, the excise tax for failing to obtain coverage for an individual in a taxpayer unit (either as a taxpayer or an individual claimed as a dependent) is $750 per year. However, the maximum penalty for the taxpayer unit is $1,500. If a taxpayer‘s MAGI is above 300 percent of FPL the penalty for failing to obtain coverage for an individual in a taxpayer unit (either as a taxpayer or as an individual claimed as a dependent) is $950 year. However, the maximum penalty amount a family above 300 percent of FPL would pay is $3,800.

Wow… just hit me, if you make less than the Federal Poverty Level, there is NO Excise tax laid on by this for not having insurance.

Romeo13 on September 16, 2009 at 3:19 PM

HOW’S IT PAID FOR: Fees on insurance companies, drug makers, medical device manufacturers and insurers.

How can that even be legal? Why is it their responsibility to fund a program that will be used by every person and every other industry in the country?

xblade on September 16, 2009 at 3:34 PM

What’s the annual cost of an option to buy health insurance at any time (if you could buy one)? If it’s $750-$1500, then it doesn’t matter whether people buy insurance before they get sick or not. They’ll buy it then and the excise tax pays for their failure to buy it earlier.

Wasn’t it the GOP who demanded that illegals not be covered? Strikes me that the smarter course would have been to demand they be covered and pay excise taxes.

Jimbo3 on September 16, 2009 at 3:37 PM

the excise tax for failing to obtain coverage for an individual in a taxpayer unit (either as a taxpayer or an individual claimed as a dependent) is $750 per year.

And that’s why I would not get coverage. That’s $60/month. I’ll just pay that penalty, and then pick up a policy when I get sick, since I can’t be refused or charged more for having a pre-existing condition.

xblade on September 16, 2009 at 3:42 PM

Before Joe Wilson called Obama a liar:

“Nothing in this subtitle shall allow Federal payments for affordability credits on behalf of individuals who are not lawfully present in the United States.”

and after:

“In order to prevent illegal immigrants from accessing the state exchanges obtaining federal health care tax credits, the Chairman‘s Mark requires verification of the following personal data. Name, social security number, and date of birth will be verified with Social Security Administration (SSA) data. For individuals claiming to be U.S. citizens, if the claim of citizenship is consistent with SSA data then the claim will be considered substantiated. For individuals who do not claim to be U.S. citizens but claim to be lawfully present in the United States, if the claim of lawful presence is consistent with Department of Homeland Security (DHS) data then the claim will be considered substantiated. Individuals whose status is expected to expire in less than a year are not allowed to obtain the tax credit. Individuals whose claims of citizenship or lawful status cannot be verified with federal data must be allowed substantial opportunity to provide documentation or correct federal data related to their case that supports their contention.”

Thank you Joe.

BohicaTwentyTwo on September 16, 2009 at 3:42 PM

So, in other words, the bill originally did prohibit the coverage of illegal immigrants. It just didn’t have a policing mechanism?

Jimbo3 on September 16, 2009 at 3:47 PM

The phone rings and the lady of the house answers.

“Hello?”

“Mrs. Sanders, please..”

“Speaking.”

“Mrs. Sanders, this is Dr. Jones at St. Agnes Laboratory. When your husband’s doctor sent his biopsy to the lab last week, a biopsy from another Mr. Sanders arrived as well.
We are now uncertain which one belongs to your husband.
Frankly, either way the results are not too good.”

“What do you mean?”

Mrs. Sanders asks nervously.

“Well, one of the specimens tested positive for Alzheimer’s and the other one tested positive for HIV. We can’t tell which is which.”

“That’s dreadful! Can you do the test again?” questioned Mrs. Sanders.

“Normally we can, but the new health care system will only pay for these expensive tests just one time.”

”Well, what am I supposed to do now? ”

“The folks at Obama health care recommend that you drop your husband off somewhere in the middle of town.
If he finds his way home, don’t sleep with him.”

izoneguy on September 16, 2009 at 3:47 PM

What’s the annual cost of an option to buy health insurance at any time (if you could buy one)? If it’s $750-$1500, then it doesn’t matter whether people buy insurance before they get sick or not. They’ll buy it then and the excise tax pays for their failure to buy it earlier.

Wasn’t it the GOP who demanded that illegals not be covered? Strikes me that the smarter course would have been to demand they be covered and pay excise taxes.

Jimbo3 on September 16, 2009 at 3:37 PM

Thats my point… you’re getting there…

The whole plan is unworkable… and if put into place will not solve any of the current problems…

And in fact, in a year or so would probably make things WORSE… so they would need to RAM another bill through… probably with a Single Payer System… which is their ultimate goal in the first place.

This unworkable system is nothing more than part of Obama’s plan to the single payer system… the one he SAID he wanted, but that there would have to be incremental steps to get there…

Romeo13 on September 16, 2009 at 3:50 PM

How does it not solve any of the current problems? It sure seems to fix the problem of pre-existing conditions.

If you think that all illegals should now be required to purchase insurance, why don’t you ask your GOP representative to propose changes to the bill?

Jimbo3 on September 16, 2009 at 3:53 PM

How does it not solve any of the current problems? It sure seems to fix the problem of pre-existing conditions.

If you think that all illegals should now be required to purchase insurance, why don’t you ask your GOP representative to propose changes to the bill?

Jimbo3 on September 16, 2009 at 3:53 PM

Forcing Insurance companies to cover pre existing conditions, will bankrupt with the way this bill is written.

With only a 750 dollar excise tax, you don’t have to get insurance UNTIL you get sick, and they then HAVE to cover you.

This makes the insurance pool even SMALLER… and because they use the fees from Healthy people, to pay the costs of Sick people, the whole thing becomes economicly impossible.

As to illegals? What does THIS bill do? They don’t have to get insurance, but will still get coverage in Emergency rooms.

So, IMO, LESS people will end up with long term insurance coverage… and this does nothing about the illegal problem.

Romeo13 on September 16, 2009 at 4:04 PM

Romeo, the insurance companies have, I’m sure, been involved in the negotiations. That’s how the pricing was set.

Jimbo3 on September 16, 2009 at 4:06 PM

Romeo, the insurance companies have, I’m sure, been involved in the negotiations. That’s how the pricing was set.

Jimbo3 on September 16, 2009 at 4:06 PM

o_O

AnninCA, is that you?

DrSteve on September 16, 2009 at 4:10 PM

So, in other words, the bill originally did prohibit the coverage of illegal immigrants. It just didn’t have a policing mechanism?

Jimbo3 on September 16, 2009 at 3:47 PM

Correct. The verification standards and policing would have been left up to the whims of the Health Care Commissioner.

BohicaTwentyTwo on September 16, 2009 at 4:11 PM

Romeo, the insurance companies have, I’m sure, been involved in the negotiations. That’s how the pricing was set.

Jimbo3 on September 16, 2009 at 4:06 PM

I know plenty of guys who were screwed by their wives lawyers who were also “in” on the agreement….

If anyone trusts anyone else in these “healthcare” negotiations then they are naive.

izoneguy on September 16, 2009 at 4:15 PM

No, it’s not, Dr. Steve. You don’t work in the Carolinas, do you.

Take a look at the differentials in the bill for age, smoking and family size. I’m sure insurance companies were intimately involved in that. Business is by and large favorable on the bill if the WSJ is to be believed.

Jimbo3 on September 16, 2009 at 4:16 PM

Romeo, the insurance companies have, I’m sure, been involved in the negotiations. That’s how the pricing was set.

Jimbo3 on September 16, 2009 at 4:06 PM

Seriously, though, I don’t think you understand what you’re saying. Both the penalties, if the language I’ve seen excerpted here is correct, are harmful to private insurers because (1) they set the “pay” rate too low, which will encourage employers to pay the penalty and drop people to the public rolls rather than pick up insurance costs for employees; and (2) the combination of a weak individual-mandate penalty and coverage of preexisting conditions sets up a dynamic where people pay the penalty until they need insurance, at which point guaranteed issuance (at an actuarially unfair rate) takes over.

DrSteve on September 16, 2009 at 4:17 PM

Take a look at the differentials in the bill for age, smoking and family size. I’m sure insurance companies were intimately involved in that. Business is by and large favorable on the bill if the WSJ is to be believed.

Jimbo3 on September 16, 2009 at 4:16 PM

Only reason the Insurance companies prefer this bill, to the other, is that it does take out the Government being in direct competition with them…. for now…

They think SOMTHING will be passed… so they are trying to hang on as long as possible…

Or, in other words… the Gov is saying do you want to live 6 months? or 5 years?… of course you choose the 5 years… even though both are death sentences.

Romeo13 on September 16, 2009 at 4:26 PM

Seriously, though, I don’t think you understand what you’re saying. Both the penalties, if the language I’ve seen excerpted here is correct, are harmful to private insurers because (1) they set the “pay” rate too low.

Steve, how do you know the “pay” rate is too low? The $750-$1500 excise tax may cover the annual cost of buying an option to always be able to purchase health insurance. That amount doesn’t need to cover any of the cost of actual medical care in a year because people will buy coverage when their actual bills get too high. Doesn’t that cover your actuarial point?

Jimbo3 on September 16, 2009 at 4:32 PM

Ogabe … out of pure narcissism – has put these lawmakers into an impossible situation.

They’re trying desparately to come up with something on the Democratic side to save this President but after the march of a million people on D.C. this past week – everyone knows that no bill is possible.

Kobiashi Maru. That’s not the fault of any Conservative – it’s the fault of the President for pushing his socialist agenda to the point of near violence.

HondaV65 on September 16, 2009 at 4:44 PM

Burn Obamacare down! This thing is dead!
We want NO NEW BILLS VOTED ON or DEBATED until all of the corruption is cleaned up.

Get to work congress!

patriotparty1 on September 16, 2009 at 4:49 PM

Jimbo3 on September 16, 2009 at 4:32 PM

Your point: Insurers must have participated in the pricing. No evidence cited.

My point: Unlikely, as at least two dynamics are apparent in some bill language that hasten the demise of private insurance. My “too low” relates to the standpoint of private insurers, since the low “pay” rate (which is on the employer side, BTW, the individual mandate penalty is something separate) encourages abandonment of employer-provided coverage (possibly to the public option, possibly just to the exchange, not clear on the specifics in Baucus’ mark).

As to the “actuarial point,” what does the relationship of the insured’s MAGI to FPL have to do with their expected claim volume for a year? This should tell you which considerations are actually at work here. Please show your work.

DrSteve on September 16, 2009 at 4:52 PM

Another “actuarial point” — Romeo13′s conjecture about pool sizes may well be correct.

DrSteve on September 16, 2009 at 5:00 PM

For both of you:

“With only a 750 dollar excise tax, you don’t have to get insurance UNTIL you get sick, and they then HAVE to cover you.

This makes the insurance pool even SMALLER… and because they use the fees from Healthy people, to pay the costs of Sick people, the whole thing becomes economicly impossible.”

–Where is the money from the excise tax going? If it’s going to be funneled to the insurance companies, then it wouldn’t do so.

Jimbo3 on September 16, 2009 at 5:03 PM

I don’t get how this will work. They do not want you to have catastrophic insurance which would keep down your premiums, so if you get the kind of insurance they want you to have then you will have to pay more for it…ahh. I see, they are going to require you pay more for insurance and then tax you for paying more…

Terrye on September 16, 2009 at 5:21 PM

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