As explained in this previous post, Obamacare is the end of private health insurance, and, as most of you have long known, that was the original intention. It’s also an endless cornucopia of surprises. The One accomplishes the slaying of this unfair and outmoded institution by eliminating the practice of “medical underwriting,” which means that by law, insurance companies must charge the same premium to everyone. No more denials of coverage for “pre-existing conditions.” How will insurance companies pay those extra costs? The brainiacs who dreamed up Obamacare thought of that. (Don’t they think of everything?) From the Washington Times story, Obamacare fee of $63 per person to begin in 2014:
Your medical plan is facing an unexpected expense, so you probably are, too. It’s a new, $63-per-head fee to cushion the cost of covering people with pre-existing conditions under President Obama’s health care overhaul.
The charge, buried in a recent regulation, (emphasis mine-one of those of the several hundred references to “as the Secretary shall determine”) works out to tens of millions of dollars for the largest companies, employers say. Most of that is likely to be passed on to workers.
Employee benefits lawyer Chantel Sheaks calls it a “sleeper issue” with significant financial consequences, particularly for large employers.
“Especially at a time when we are facing economic uncertainty, [companies will] be hit with a multimillion-dollar assessment without getting anything back for it,” said Mr. Sheaks, a principal at Buck Consultants, a Xerox subsidiary.
Based on figures provided in the regulation, employer and individual health plans covering an estimated 190 million Americans could owe the per-person fee.
Most of whom, of course, will not benefit from these payments. But then it’s all about “fairness,” no? Someone has to pay for those poor schmucks with the pre-existing conditions. It may as well be you, Bitter Clinger. The makers v. the takers, remember?
Now let’s consider two prospective customers under this “take all comers” Obamacare health “insurance” system:
Customer A: an obese, insulin-insensitive 63 year-old lifetime (since age 14) cigarette smoker, who is also a heavy drinker and occasional pot smoker, whose diet consists of a daily breakfast of Cheetos and Jack Daniels, supplemented by Hershey bars and Mountain Dew throughout the day, and who has shortness of breath, knee and back pain and frequent chest pains. He hasn’t had his teeth cleaned since Jimmy Carter was president, and the only exercise he gets is pushing his shopping cart around and muttering under his breath.
Customer B: a 27 year-old marathon runner who eats no red meat, not only runs 75 miles a week, but also attends a weekly yoga class, and lifts weights twice a week, and has an enviable body fat percentage. He’s what insurance companies call a “young invincible,” which means that he is not inclined to purchase insurance because he thinks he’s going to live forever. He is a non-smoker, and a moderate, social drinker. His only health problem was a mild cold 18 months ago. He sees his doctor and dentist every year for check ups. After all, he does all the scheduled maintenance on his car. Why not his body?
Now, you’re the insurer. You must charge the same premium to A and B. Do you charge both customers the rate required to pay the medical bills and make a slight profit when you take on A, or the rate for B? The answer obvious.
Now, you are B’s employer. (Right, A has no employer. How did you guess?) Faced with an increase of several hundred percent for the cost of your share of the health insurance that you have proudly provided your employees for years, do you pay that now ridiculously high cost or do you opt to pay the Obamacare fine, which is substantially less? Once again, the answer is obvious.
So, as private employers drop their coverage because of skyrocketing premiums, you and your family end up dumped on the government-run system, the good news is that you won’t have to worry about that $63 fee. The bad news is that you, your kids, and your mama, along with Customer A, are consigned to the state-run system. Good luck finding a doctor.
On second thought, as Ronald Reagan once accurately noted, the only thing resembling eternal life is a federal program, and once this tax is enshrined in law, do you really think that these parasites will give up that $63 a head, even after they’ve destroyed our health care system and you are on the crappy government-run system?