The Palmetto Insider

The blog of the South Carolina Policy Council

Health Care Bill Represents Massive Government Intervention

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From what the leadership of the U.S. Senate is saying we are supposed to believe new healthcare legislation will be a bargain. Argues Sen. Max Baucus (D-Mont.), the bill represents a “commonsense, balanced solution.”

While the Congressional Budget Office (CBO) estimates the bill before the Senate will cost $829 billion, other experts have shown that the CBO score is highly suspect and likely grossly underestimates the true costs, which could be as high as $6 trillion.

And just how will these bills be paid? Unfortunately, according to a recent op-ed by the Georgia Public Policy Foundation, a redistribution of wealth will pay the tab. The four methods detailed are:

1) Lower government funding for Medicare
2) Add taxes and fees on private insurance and medical supplies
3) Implement price controls on premiums
4) Mandate costly coverage

The result is an increase in premiums and perverse incentives for individuals – and still leaving at least 25 million uninsured by the year 2019.

[A PricewaterhouseCoopers study] expects that by 2019, small group premiums would increase by an additional $2,100[8] for single coverage and $5,400[9] for family coverage.  Eight in 10 uninsured individuals work mainly in small businesses; hiking premium costs for individual and small group plans will only increase the number of uninsureds. It is no wonder that the CBO estimates that by 2019, there will still be 25 million uninsured individuals.[10]

Healthy Americans would be disadvantaged for their efforts at prevention, early intervention, wellness, and improved eating and exercise habits. The H.E.L.P. Committee proposal would make it illegal for insurers and employers to reward and incentivize good healthy habits to control blood pressure and cholesterol.  Responsible citizens would pay for the lack of personal responsibility in others.

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Written by Geoff Pallay

December 11, 2009 at 1:11 pm

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