Obama likes to say that his plan does not kill private insurance. He likes to say that he is â€œadding choiceâ€. This is patently false, and you should be scared. If the Obama plan passes (currently in debate in the House!), you will eventually have no choices except the government choice.
The House plan allows employers to chose: either they can provide private insurance and pay nothing to the government plan, or they can simply pay 8% of payroll to the government and everyone gets the government plan.
Today, employers are already paying more than 8% of payroll for healthcare premiums. In fact, small businesses are paying between 11% and 14% of payroll to health insurance premiums. With medical costs rising, this figure is only going up.
So even if your employer doesnâ€™t switch to the government plan now, they eventually will. A reduction in wages by 6% can be achieved by switching your healthcare provider? What board of directors *wouldnâ€™t* switch?
Now you might, like Obama, believe that the health care insurers are making too much in profits, so the private insurers just need to reduce prices. Iâ€™m sure they will try to compete with the new taxpayer-funded pricing. Keep in mind, however, that while a cut from 14% of payroll to 8% of payroll is only a 6% savings for the company, that represents a 43% drop in revenues for the health insurer. These companies will need to cut costs to reflect the new pricing; which roughly translates to a 43% drop in covered care. Because of the reduced coverage, this will give employers all the more reason to switch the the simple, no-overhead plan â€“ the government plan. As more employers switch, more private insurers will go out of business. It is just a matter of time.
Oh â€“ and how did the government calculate the figure for an 8% payroll tax? Nobody knows! Should it be 9%? 7%? Nobody knows! It appears to be a number masterminded to drive Health Insurers out of business.
Obama is about taking away freedom and taking away choice. Government healthcare does improve healthcare for 10% of Americans, but it makes healthcare worse for 90% of Americans.