The Health Care Mess

So-called health care legislation will still leave millions out in the cold and even ration care.

As long as the insurance companies are allowed to remain in the system, all reform will be nothing but a cruel hoax.

In the House Democrats’ proposal—America’s Affordable Health Choices Act—those individuals who do not have employer-based medical insurance, and who choose not to purchase coverage, would pay a penalty of 2.5 percent of modified adjusted gross income, if they cannot demonstrate “hardship.” This component of the legislation comes under the subheading “Shared Responsibility.” The Senate health committee fine would be $750 per individual.

Critics of this “individual mandate” have pointed out that many struggling working families and the unemployed—who would find it difficult to pay hundreds of dollars a month in premiums—would be forced to gamble going without coverage and pay the penalty instead, which might average $1,000 in the House version.

While this penalty is steep, it would still be less than the total annual premium they would expect to pay for coverage. And after the penalty is paid, these families would still be without health care coverage. Only for those earning about $400,000 a year would the 2.5 percent penalty be more or equal to the average insurance premium.

This is almost like mandatory auto insurance. Unbelievable.