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MASSACHUSETTS EMPLOYERS DROPPING HEALTH CARE; GO FIND A PUBLIC OPTION! WHOSE HEALTH CARE PLAN WAS THAT ANYWAY?

We learned last week  that a solar eclipse is a rare but beautiful convergence of heavenly bodies.  When we have here is a rare but ugly convergence of past and future that has deep implications for the 2012 election.

The Boston Globe is reporting that:

The relentlessly rising cost of health insurance is prompting some small Massachusetts companies to drop coverage for their workers and encourage them to sign up for state-subsidized care instead, a trend that, some analysts say, could eventually weigh heavily on the state’s already-stressed budget.

The trend is admittedly not clear and government officials say in effect don’t worry about it:

State officials said they have not seen convincing evidence that there is a trend. There has not been an unusually large spike in enrollment in Commonwealth Care, the subsidized insurance program, according to spokesman Richard Powers. And in any case, Dr. JudyAnn Bigby, secretary of health and human services, said the administration budgeted for higher health care spending because it anticipated that there would be growing numbers of long-term unemployed residents who would be signing up for coverage.

The Massachusetts Division of Health Care Finance and Policy annually surveys employers and found no significant drop in coverage as of the end of 2009, when more than three-quarters of companies offered health insurance.

But others say there is a major problem:

But insurance brokers say the pace of terminations has picked up considerably since then among small companies, of which there are thousands in Massachusetts. Many of these companies — restaurants, day-care centers, hair salons, and retail shops — typically pay such low wages that their workers qualify for state-subsidized health insurance when their employers drop their plans.

“Those employers are trying to keep their doors open, and to the extent they can cut expenses, they will cut health insurance because they know their people can go to Commonwealth Care,’’ said Mark Gaunya, president of the Massachusetts Association of Health Underwriters, a trade group representing more than 1,000 brokers and other insurance professionals.

Who do YOU believe, Sanders?  I usually go with the private sector in this sort of spitting contest.  But the potential is ominous.  Obamacare and Commonwealth Care both have similar features.  Don’t take my word for it – try cnn.money.com here:

The best guide to how President Obama’s historic health-care legislation will reshape the nation’s medical marketplace and fiscal future is the pioneering model in Massachusetts. The Bay State’s reform program started in late 2006, and it shares virtually all the major features of the new federal plan.

OOPS!  The five warnings that CNN Money give for Obama/Commonwealth Care are:

1.  It won’t control costs.

A report from that state attorney general in March — remember, this is a Democratic administration — asked rhetorically “Can we expect the existing health-care market in Massachusetts to successfully contain health-care costs?” The report concluded, “To date, the answer is an unequivocal ‘no.'”

2.  Not only that but mandated acceptance of everybody regardless of condition raises costs:

How did costs in Massachusetts get so big to begin with? A major reason is the adoption of guaranteed issue and community rating in the mid-1990s. The new federal bill would expand those rules to the entire nation. Under guaranteed issue, insurers must accept all enrollees regardless of their medical condition; under community rating, they must charge all customers similar premiums, even if their costs are far different. The result is that prices rise steeply for young, healthy customers, who must pay far more than their actual costs. It also give them a strong incentive to drop insurance; then they can “game the system” by signing up any time they need surgery or get diabetes.  *  *  *

In the federal bill, the fines for going uninsured are even lower than in Massachusetts — and anyone who can’t find an inexpensive plan is exempted from all penalties. Hence the “adverse selection” problem could prove far worse.

OOPS!  Who wrote this bill?  Ted Kennedy?  Nope.

3.  The subsidies to lower and middle class earners are expensive:

The big problem arises if far more people sign up for these exchange-offered plans than anticipated. That’s been the case in Massachusetts. And as we’ll see in a moment, it could still get a lot worse there. A potential disaster threatens the federal plan if employers staring dropping coverage, since a flood of newcomers would rush into the state-funded pools.

Is this Katrina or health care?  Maybe both.  Who wrote this thing?  Martha Coakley?  Nope.

4. There are incentives to not earn more than certain amounts – or cheat on income!

The federal bill is plagued by the same weakness. For example, a $55,000 earner contributes $4,400 a year towards insurance. At $65,000, the bill is $6300; so the family is paying a “tax” of $1,900 or 19% on that $10,000 raise. After payroll taxes, those Americans would face a marginal rate of around 35%, a number that’s heretofore been the territory strictly for high-earners.

Cheating on income in small areas will get worse.  So who, Sanders, came up with this?  Deval Patrick?  Nope.

5.  There is also an incentive (which we have already seen in the Boston Globe above) to drop employees:

Employees can only move into Commonwealth Care if their employers drop their plans. The danger is that the incentives are tilting in that direction as the costs of coverage for employer, and the price of premiums to employees, keep climbing. The point is rapidly approaching where both will pocket big savings if employers drop their plans and workers buy their policies through the heavily subsidized exchanges.

So, Sandy, tell us – What LIBERAL DEMOCRAT thought up this first cousin to Obamacare?  Here’s the answer from another conservative daily like the Boston Globe and CNN, The New York Times:

To make it happen, Democratic lawmakers and Gov. Mitt Romney, a Republican, made an expedient choice, deferring until another day any serious effort to control the state’s runaway health costs.

It is our 2012 frontrunner, establishment candidate former Governor Mitt Romney!  And the GOP will nominate him to run for President?  Thanks but no thanks.  What could Romney say?  I’ll sign the repeal of Obamacare?  The President would cheerfully run a zillion dollars worth of TV ads saying he’d have to repeal HIS OWN plan!  It’s like the TARP bailout – we have no place to go with McCain agreed with Obama it was needed.  I say no to Obamacare and Romneycare as I vote for Ron Paul instead in the primary.  Even Sarah Palin would get my vote over Mitt Romney.  I don’t even think Romney will be in the race when the first votes are counted. 

About Elwood Sanders

Elwood "Sandy" Sanders is a Hanover attorney who is an Appellate Procedure Consultant for Lantagne Legal Printing and has written ten scholarly legal articles. Sandy was also Virginia's first Appellate Defender and also helped bring curling in VA! (None of these titles imply any endorsement of Sanders’ views)

5 Responses to “MASSACHUSETTS EMPLOYERS DROPPING HEALTH CARE; GO FIND A PUBLIC OPTION! WHOSE HEALTH CARE PLAN WAS THAT ANYWAY?”

  1. WideAwake says:

    If you support Failin Palin…then I know what you wrote about Obamacare is a scare tactic that doesn’t work anymore.

    Palin 2012 1/2

  2. jacksmith says:

    I’M PROUD OF YOU LABOR!. Keep standing up. The lives and health of all the American people and the World are in serious jeopardy.

    Further, unemployment healthcare benefits are critically needed. But they should be provided through the Medicare program at cost, less the 65% government premium subsidy provided now to private for profit health insurance.

    Congress should stop wasting hundreds of millions of dollars of taxpayer money on private for profit health insurance subsidies. Subsidies that cost the taxpayer 10x as much or more than Medicare does. Private for profit health insurance plans cost more. But provide dangerous and poorer quality patient care.

    It’s over. Tell congress to get the healthcare Merchants of death and injury out of the American peoples lives for good. 2010 is about THE PUBLIC OPTION!

    And that CORRUPT! UNDEMOCRATIC! filibuster must GO! NOW!

    Alan Grayson Honors The Dead http://www.youtube.com/watch?v=TV9TRoYMtjs&feature=player_embedded

    Alan Grayson on Healthcare http://www.youtube.com/watch?v=oPpQ2MNaSDo&feature=player_embedded

    Ron Sparks HealthCareReform http://youtu.be/kqlBFRJh4Cw

    John Garamendi – The Public Option http://www.youtube.com/watch?v=EyBTEke68aQ&feature=player_embedded

    I want to commend all of you for working so hard and being so strong at helping the whitehouse and congress begin to address our U.S. and Global healthcare crisis. You have been AWESOME! my fellow Americans and peoples of the World. America and the World is better and safer for it. My greatest pride is the knowledge that I am one of you. And that you really get it. You really understand the importance of it all.

    There are some potentially very good things in the healthcare legislation. Especially with the reconciliation fix’s. The Democrats, Bernie Sanders and the Whitehouse did a GREAT! job of fighting to produce the best healthcare legislation that they could. They have earned all our strong support. And we should give it to them.

    But it was your relentless pressure and hard work that made the difference. Whatever good comes from this healthcare legislation, America and the peoples of the World will have each of you to thank. You were smart, creative, courageous and relentless. You fought together for the best legislation possible. And when you had to, you fought alone. No matter who stumbled and fell you continued to push and forge ahead. Fighting for the lives and health of the American people and the World. YOU SHOULD BE PROUD OF YOUR-SELVES 🙂

    It may come to pass that future generations will look back on us and say that we were ALL Americas Greatest Generations. And that healthcare reform was our finest hour. You should be proud of our leaders President Obama, Speaker Pelosi, Majority Leader Reid and the many other Democratic and independent fighters for the people in congress. They proved them-self worthy of the leadership of a GREAT! PEOPLE.

    But we are not done yet. This was just the beginning of healthcare reform, not the end. WE THE PEOPLE OF THE UNITED STATES, ARE NOT! divided on healthcare legislation. The vast majority of you have been consistently crystal clear that this legislation does not go far enough. You want a strong Government-run Public Option CHOICE!! available to everyone on day one. And you want it NOW!

    YOU MUST NOT ALLOW AN INDIVIDUAL MANDATE TO STAND WITHOUT A STRONG GOVERNMENT-RUN PUBLIC OPTION CHOICE! AVAILABLE TO EVERYONE.

    WE THE PEOPLE have been crystal clear that we want an end to dependence on for-profit healthcare and the for-profit proxies called private for non-profit healthcare. The American people want the CHOICE! of a strong Government-run Public Option to replace their need or dependence on healthcare providers whose primary motivation is profit. Rather than providing the highest quality, easiest accessible and most affordable medically necessary healthcare possible. This is what the rest of the developed World has. And the American people want it too. They want healthcare ASSURANCE! Not, for-profit health insurance. And they want it NOW!

    Now is the time to continue the push for a strong Government-run Public Option CHOICE! available to everyone that wants it on day one. Rationally it’s clear what we have to do to get this done. SUPPORT THE DEMOCRATS that supported you with a Public Option choice, and REMOVE as many republicans as you can. Not one republican in congress was willing to step across the isle to support a strong Government-run Public Option CHOICE!! available to everyone on day one. NOT ONE! Let no candidate prevail this November that does not support a Strong Government-run Public Option.

    47,000 AMERICANS die each year from lack of healthcare. 120,000 die from treatable illness that don’t die in other developed countries. Hundreds of thousands of you are dieing from medical accidents in a rush to profit. And Millions of you are injured. Millions more are driven into bankruptcy. All for the privilege of paying two to three times as much as any other people in the developed world for healthcare. HOGWASH!

    Additionally, tens of thousands of you and your children were killed and millions sickened and injured from a terror attack with H1N1 (swine flu). Released on the American people and the World by the for-profit healthcare industry. All in an attempt to panic and frighten you into accepting the oxymoronic criminal enterprise of private for-profit healthcare (The most costly, deadly, dangerous, and disgraceful product sold in America). H1N1 is still sickening people and killing them. Especially children, the young and the middle aged. And there will be a third wave. These are the terrorist you need to worry about the most. Even the so-called international terrorist would not do something so INSANE! But greed driven medical profiteers would and did.

    Apparently as far as republicans in GOVERNMENT are concerned, YOU! my fellow Americans – CAN JUST DROP DEAD! Including their own family members. Fools!… Hundreds of thousands of you, and possibly millions of you will die from the long-term effects of your infection and poisoning with H1N1.

    So my fellow Human Beings. Rest-up, Take good care of the basics (Balanced nutrition, hydration, exercise, rest and POSITIVE emotional supports). Then wade back into the FIGHT! for a strong Government-run Public Option CHOICE! available to everyone on day one. Drug re-importation, Abolishment or strong restrictions on patents for biologic and prescription drugs. And government controlled and negotiated drug and medical cost. You must take back control of your healthcare system from the Medical Industrial Complex. You MUST do it NOW! This is a matter of National and Global security. There can be NO MORE EXCUSES.

    God Bless You My Fellow Human Beings. I’m glad to know of you. And proud to be one of you.

    See you on the battle field.

    Sincerely

    jacksmith – WorkingClass 🙂

  3. nice post… i enjoyed reading it…i m looking forward for the next post of yours…

Trackbacks/Pingbacks

  1. […] We learned last week  that a solar eclipse is a rare but beautiful convergence of heavenly bodies.  When we have here is a rare but ugly convergence of past and future that has deep implications for the 2012… Read the rest […]

  2. […] I also suggest Romney will be significantly hurt by his Massachusetts healthcare plan (see my prior blog entry on this) and caucuses will favor organization on the […]


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