Health Care and Politics: Obama and McCain

So here I am sitting at a coffee shop trying to find inspiration for my first insurance blog.  What’s going to fire people up, what’s going to get people going, how can I help John and Jane Doe, and of course Joe the Plumber, or is it Steve? understand what is happening on the insurance landscape?  We all need insurance, we all need to know about insurance, but OH MY!! it is so boring.  My first attempt at an article on McCain v. Obama went up in flames.  Everyone has an opinion, most of them differ, and it’s hard to know what they are actually proposing.  I literally was hoping that when I stood up to get my second double espresso mocha half skim, half soy, sin whip (you have to make it spendy or you can’t stay on the wi-fi connection all day) that someone would swipe my computer and I’d have a decent excuse for not completing this post… no dice.

Well, then I’m going to lay it out quick and dirty like.  I guess I need to retract my earlier statement… it’s easy to know what they are proposing, how are the going to deliver though. It is important to know what the candidates are saying, but even more so to know what they aren’t saying.  Let me give it a go.

This is what our two magnificent choices for the highest office in the world, some may think that’s debatable, are proposing.

McCain: John McCain believes we can and must provide access to health care for every American.   This is what he proposes.   McCain is going to give $2,500 tax credit for individuals and a $5,000 tax credit (basically cash) for families to purchase their own insurance.  Instead of allowing the average citizens the same insurance as our government has access too he is pushing competition with insurance companies through deregulation.  What this means is that people can choose what plans they want and where they can go to receive their care thus letting the free market dictate the system (cost to you).  There are a some states (NY, NJ, WA, MA, HI, ME, VT and RI) that don’t allow outside insurance brokers to sell to their citizens leading to less competition and lowering the range of the free market.  Through deregulation these barriers to entry will be broken down and allowing more ‘players in the game’ as they say and equaling the playing field in those states.

Obama:  The Obama plan provides affordable, accessible health care for all Americans, builds on the existing health care system, and uses existing providers, doctors and plans to implement the plan.  How are we going to do this, saving and spending. Through streamlining the health care system (reporting and documenting more efficiently) allowing more people access to insurance similar to plans offered to congress and lowering repeat visits, and promoting changes in lifestyle we can save more.  By asking small to medium sized businesses to contribute more to the health care system we can spend more.

Here are the arguments.  McCain’s plan will never pass in the shadow of $700 billion buy out so in essence it sounds like he’s just blowing hot air. Eventually the spending has to stop and if anyone thinks that when the government says that they’re going to give you a credit, its actually money coming out of your own pocket.  If it isn’t coming directly out of your pocket than its coming out of the pocket of your employer.  Either you’ll lose your job or get paid less.  Not time has the phrase “There is no such thing as a free lunch” rang more true than now.  I’m certainly not an apostate mathematician that started blogging but if you’re taking from the same people your giving to not much will be accomplished.

Obama isn’t coy about it.  He wants to tax smaller businesses, the back bone of our economy, more than ‘they’ already are in order to supply the very expensive plans.  If history holds true, and often times it does, taxing during a ‘recession’, whatever that means these days, is no way to add jobs to an ailing economy.  Also through the constant reporting/documenting, some say, the government will be very involved in this process.  Anytime you hear government and insurance together it screams of socialism.  I think P.J. O’Rourke summarized it best when he said “If you think health care is expensive now, just wait until its free.” Much truth behind that statement.

Let me get a show of hands please, does anyone want a candidate to step up to the plate and say “everyone, we need to tighten our belts and buck up.  I know you want an easy solution but there isn’t one and by living within our means and taking responsibility, that is the only way we can get out of this mess.”  It’s all lies.  They’re promising us that they’ll take our money and give it back to us.

Maybe this post isn’t so much as explanatory as it is exploratory.  I think I have a general grasp on the situation.  Anyone interested in leaving comments?

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Tags: distribution of wealth, Health Insurance, Insurance, McCain, Obama, recession, small business, Socialism, taxes

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