Socialized Medicine on the Installment Plan

[Charles_Main]

Socialized Medicine on the Installment Plan

by Michael D. Tanner

Michael D. Tanner is a senior fellow at the Cato Institute editor of Healthy Competition: What's Holding Back Health Care and How to Free It (Second Edition 2007)


This article appeared on Cato.org on February 11, 2009

The withdrawal of Tom Daschle as President Obama's nominee for secretary of health and human services is generally viewed as a setback for the president's health care reform plans. Even so, the Obama Administration is already well on its way toward putting the government in charge of our health care system.

Less than two weeks into his administration, President Obama has already signed a massive expansion of the State Children's Health Insurance Program (SCHIP). The bill is ostensibly designed to provide health insurance to children from poor families. The language of the bill, however, will allow states to increase SCHIP income eligibility to 400 percent of the poverty level – amounting $83,000 for a family of four. Furthermore, the bill allows states to disregard some household expenses, like mortgages, in determining eligibility. Consequently, some families earning as much as $100,000 could receive government provided health insurance.

How Much is this going to cost a Year?

More than three quarters of these newly eligible children are from families that already have health insurance – 77 per cent according to the Congressional Budget Office. As a result, the SCHIP expansion will not so much increase the number of insured children as it will shift children from private health insurance plans to the taxpayer-funded system. A Robert Wood Johnson Foundation survey of 22 studies of the relationship between government insurance programs and private coverage concluded that substitution of government for private coverage "seems inevitable." But, then, that may well be the idea. In pushing for the SCHIP expansion, Sen. Richard Durbin (D-IL) said he supported the bill, in part, because he didn't want to "trap people into private health insurance."

And if that wasn't enough, the SCHIP expansion will also continue and even expand states to use the clearly misnamed State Children's Health Insurance Program to cover adults. Already, eleven states use S-CHIP funds to provide taxpayer-funded insurance for adults. Indeed, in Minnesota more than half of S-CHIP recipients are actually adults. In New Jersey, 48 percent of program participants are adults, not children, while in Illinois, 45 percent of the SCHIP recipients are adults. According to the state's own projections, Illinois will soon spend more SCHIP money on adults than on children. Under the new bill, even more states will be able to take advantage of this loophole.

Equally significant are several provisions in the proposed economic stimulus bill now making its way through Congress. For example, the bill would allow states to extend Medicaid coverage to unemployed workers and their families, with the federal government pay 100 per cent of the costs. And there would be no income or asset limits whatsoever on eligibility. As a result, still more of the middle-class would be shifted into government health care.

Nor is the extension of eligibility limited to just the middle-class. A Republican amendment to bar millionaires from the program was stripped out before final passage in the House.

For the unemployed who don't go directly into government-run health care, the stimulus bill would extend COBRA coverage, and have taxpayers pick up 65 percent of premium costs.

Read the rest, if you are not to partisan and blindfolded to do it that is.

Socialized Medicine on the Installment Plan

 

[auditor0007]

Socialized Medicine on the Installment Plan

by Michael D. Tanner

Michael D. Tanner is a senior fellow at the Cato Institute editor of Healthy Competition: What's Holding Back Health Care and How to Free It (Second Edition 2007)


This article appeared on Cato.org on February 11, 2009

The withdrawal of Tom Daschle as President Obama's nominee for secretary of health and human services is generally viewed as a setback for the president's health care reform plans. Even so, the Obama Administration is already well on its way toward putting the government in charge of our health care system.

Less than two weeks into his administration, President Obama has already signed a massive expansion of the State Children's Health Insurance Program (SCHIP). The bill is ostensibly designed to provide health insurance to children from poor families. The language of the bill, however, will allow states to increase SCHIP income eligibility to 400 percent of the poverty level – amounting $83,000 for a family of four. Furthermore, the bill allows states to disregard some household expenses, like mortgages, in determining eligibility. Consequently, some families earning as much as $100,000 could receive government provided health insurance.

How Much is this going to cost a Year?

More than three quarters of these newly eligible children are from families that already have health insurance – 77 per cent according to the Congressional Budget Office. As a result, the SCHIP expansion will not so much increase the number of insured children as it will shift children from private health insurance plans to the taxpayer-funded system. A Robert Wood Johnson Foundation survey of 22 studies of the relationship between government insurance programs and private coverage concluded that substitution of government for private coverage "seems inevitable." But, then, that may well be the idea. In pushing for the SCHIP expansion, Sen. Richard Durbin (D-IL) said he supported the bill, in part, because he didn't want to "trap people into private health insurance."

And if that wasn't enough, the SCHIP expansion will also continue and even expand states to use the clearly misnamed State Children's Health Insurance Program to cover adults. Already, eleven states use S-CHIP funds to provide taxpayer-funded insurance for adults. Indeed, in Minnesota more than half of S-CHIP recipients are actually adults. In New Jersey, 48 percent of program participants are adults, not children, while in Illinois, 45 percent of the SCHIP recipients are adults. According to the state's own projections, Illinois will soon spend more SCHIP money on adults than on children. Under the new bill, even more states will be able to take advantage of this loophole.

Equally significant are several provisions in the proposed economic stimulus bill now making its way through Congress. For example, the bill would allow states to extend Medicaid coverage to unemployed workers and their families, with the federal government pay 100 per cent of the costs. And there would be no income or asset limits whatsoever on eligibility. As a result, still more of the middle-class would be shifted into government health care.

Nor is the extension of eligibility limited to just the middle-class. A Republican amendment to bar millionaires from the program was stripped out before final passage in the House.

For the unemployed who don't go directly into government-run health care, the stimulus bill would extend COBRA coverage, and have taxpayers pick up 65 percent of premium costs.

Read the rest, if you are not to partisan and blindfolded to do it that is.

Socialized Medicine on the Installment Plan

I'll be signing my kids up asap. It'll save me $270 per month for insurance plus co-pays. I want to make sure I get my piece of the pie. I wonder if they'll cover me too? That would save me another $330 per month plus co-pays and deductible, which comes to another $200 per month. If all goes as planned, I'll save $9600 per year. Cool.

 

[rayboyusmc]

Universal Healthcare not equal to Socialized Medicine

 

[Sinatra]

I have faith in Obama's new Healthcare Czar.

I mean, the guy made a movie about it and is obviously a health nut himself...

 

[Old Rocks]

Results count. The other wealthy industrialized nations all have universal health care. Their average longevity exceeds ours. The health of the old people exceeds ours. Their infant mortality rate is far better than our. In fact, on longevity and infant mortality we actually rank behind Cuba.

But, the health of the bottom line of big Pharma and the HMOs would all suffer should we do the sane thing and put in a real health care system for all citizens in this nation. And that is far more important for some folks than the health of the citizens of this nation.