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Wednesday, January 13, 2010

Cadillac Plans

This joke is interesting. The latest healthcare "reform" proposal includes a tax on "Cadillac Plans". This tax was in earlier proposals, but "Cadillac Plans" is a new fnord phrase. That makes it sound like "This tax will only affect super-wealthy people."

Plans with annual premiums more than $8500 will be subject to a tax of 40%. The proceeds of the tax will buy health insurance for poor people.

Do you see the scam?

First, $8500 isn't that much. When my COBRA expired, I bought the cheapest available individual policy. The premium was approximately $8500 per year.

Second, and more importantly, the $8500 figure is not adjusted for inflation. Either there's no adjustment, or it's linked to the CPI, which is much less than true inflation.

This is a common State parasite trick. They introduce a new tax. They say "only wealthy people will pay this new tax". Then, a few years later, everyone is paying it. This occurs via a tax hike or indirectly via inflation.

Healthcare "reform" is not true reform. It is corporate welfare adverised as reform.

The "Cadillac Plan" tax is a huge tax hike on all health insurance. Initially, it will affect only expensive plans, but shortly thereafter it will affect all plans.

"Healthcare is too expensive! Let's put a huge tax on it!" is the sort of pro-State troll logic that State parasites use all the time.

The "Cadillac Plan" tax is a huge tax hike. The legal requirement to buy health insurance is a huge tax hike. It's corporate welfare for insurance executives, drug company executives, and doctors.

The whole healthcare "reform" debate is one big evil fnord, both by Republicans and Democrats. The real reason healthcare is expensive is the AMA licensing cartel. This is not mentioned in the mainstream media.

It's wrong to say "The USA free market healthcare systen is failing!" The USA does not have a free market healthcare system, due to the AMA/State licensing cartel and other State regulations.

It's the usual "Problem! Reaction! Solution!" The State causes a problem. The mainstream media overreacts and demands reform. The solution is more State power, which makes things even worse.

The problem with the USA healthcare system is not "Too much free market!" The problem is "Too little free market!"

This story was somewhat pro-State trolling, but it had an interesting point. Doctors complain that patients aren't qualified to evaluate and compare doctors. Therefore, a State monopoly and licensing cartel is needed. The problem is that doctors have no incentive to publish information, precisely because they have a State-backed monopoly. If you call 911, you're taken to the closest hospital based on where you live. There's no market; it's a bunch of gangs parceling out their turf. Also, via tort "reform", incompetent doctors are shielded from liability when they make a mistake. For example, the psychiatrists that mistreated me have no personal liability for their negligence.

Is it a coordinated conspiracy, or is it gross incompetence? Either way it's immoral. I'm not usually fooled anymore, but it's a serious problem that almost everyone else is.


fritz said...

Your last phrase tells all FSK..."I'm not usually fooled anymore, but it's a serious problem that almost everyone else is."
And it is serious and Its driving me crazy if I let it. The average person is being screwed at every turn. And the clamps are getting tighter with each moment. We are just a resource for them to harvest and hardly anyone is saying crap.

It all began when we were diverted away from sound money and the state sponsored theft and control experienced a force multiplier.

Did you know a silver quarter can buy the same amount of gasoline today as it did in 1940. 1940=25 cents per gallon,,today that silver is worth $3.00 the price of a gallon of gas.

keep up your good work Fsk,,this will pay off cuz the people need to know and see..thank you!!


theftthroughinflation said...

I havin't been following the details of the health reform lately. If it is going to be mandatory then how do they intend to verify and enforce that? I'm going to assume they will use their henchmen in the IRS to track that.
Healthcare in canada is much cheaper per person than 8500$ a year. That said there are all sorts of hidden problems. For instance it is normal to wait 6 months + for important surgeries and basic checkups. You may spend 2-6 hours or more in an emergency waiting room if your life isn't threatened. Social healthcare immorally forces sub-standard care onto everyone.

Greg c said...

I'm not saying anyone should be forced to only use High Deductible plans and/or HSAs. However to me, it makes more sense and probably does for a lot of people.

My point? The $8500 insurance plans are typical of the "oil change" variety. You know, where people expect to have $0 deductible, pay little or no co-pays, go to the doctor for every minor cold and never pay anything, etc.

You can get individual health insurance for <$100 a month for young adult that might have a $1000-5000 deductible but would keep you from going bankrupt from an emergency, pay around 80% of most procedures, give you a discount for having insurance ( you get charged more as a cash payer),etc.

I had my 2 children on a BCBS plan that cost $250 a month including dental. Covered 2 full cleanings/x rays per year for dental, reduced the cost of a doctor visit around 40%, covered everything over a $1000 yearly deductible for doctor, hospital,etc.

If you are willing to determine your risk level and not depend on "insurance" to pay your non-emergency office visits, insurance should cost nowhere near 8 grand for an individual.

FSK said...

OK, Greg is living in a fantasy world, certainly not in NYC.

I did plenty of searching, and $8500/year was the cheapest plan I could find period. There was no "very high deductible, routine stuff not covered" option available.

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