In evaluating the bill chairman's markup these last few weeks, the summation is the middle-class Americans loses in the Senates overhaul healthcare reform bill. What Americans wanted was a new system, which can reduce the cost, include all Americans, and have multiple choices. What American is getting is an overhaul of the Medicaid system, expanding a broken system to include up to 300% poverty level, and eliminate help to the middle-class Americans.
In recent articles, it assumes this overhaul plan will resolve most of American issues, and bring down the number of the uninsured, even thought over 10 million Americans may continue to not afford coverage. So the consensus would be most of the problem is resolved. Well if Americans believe in the end justifies the means we perhaps can accept the collateral damage of leaving the middle class behind. However, this is America and we believe in leaving no man behind.
So to accept anything else is not what we do. Congress in both sides and the White House should carefully evaluate the options and choices. I have seen amendments voted down which offers choices. One of the Senators offered catastrophic insurance as an option to all and he was refused. Why? If affordable coverage is what is needed then this should be an option. Especially when the minimum cost of the proposed young person age 25 making 32,500 is fixed at 2200 per year with no subsidy. So the government will be subsidizing everyone else below that income. The price does not change but the government will pay the premiums to the insurance companies. The Kaiser foundation created a calculator to show the premiums you will pay under this overhaul reform.
The average 40 year old male, premium is based at 1.0 baseline rate of $3500 per year. The rate drops and levels off at 0.62 age 25 and below. The rate increase to 2.46 above baseline at age 64
What this means to middle class professional is:
Any young professional age 25 who earns over 32,500 per year pays $2194 to $2633
Any professional age 35 who earns over 32,500 per year pays $3082 to $3698
Any professional age 40 who earns over 35,000 per year pays $3500 to $4200
Any professional age 45 who earns over 36,400 per year pays $4362 to $5235
Any professional age 55 who earns over 44,000 per year pays $6607 to $7928
Any professional age 64 who earns over 44,000 per year pays $8614 to $8614
The whole Healthcare Reform Act is based on paying premiums to the insurance industry with no pressure on the insurance industry to make it affordable. The savings to the consumer is on government subsidies (taxpayer’s money) lowering our own premiums. However, the middle-class receives no subsidies as shown above.
With the baseline rate remaining at 3500 for single adult, there is no break or anything to look forward too. In family coverage the insurance rates are even more shocking.
Age 64 Actual plan premium ranges from $22,207 to 26,649, our government will pay premiums of $19,137 to $23,579
Age 55 actual plan premium ranges from $15,361 to $18,434, our government will pay premiums of $12,291 to $15,364
Age 40 actual plan premium ranges from $9,435 to $11,321, our government will pay premiums of $7,707 to $9,594
So the subsides sound great if you are under 50,000 in income. If both spouses work and earn over 90,000, there is no subsidies and you pay the actual premiums.
How does this help the baby boomers today,who makes up a large portion of the population?
Why must we reward an insurance industry whom failed to lower cost and make healthcare affordable. We ourselves the American people are funding the premiums to make it affordable. All we have accomplished is to make the industries that fail us a stronger monopoly that we will never again be able to defeat and get true reform pass.
Let the middle-class have their own plan, a community option with direct care and a catastrophic policy to cover the major illnesses as an option. Give American a choice to fix their own uninsured problems in their own communities.
Consider what this overhaul healthcare reform plan is doing. Pass the regulation on the industry to change their ways, but do not close the door on creative thinking in healthcare. The design of one plan fits all, with mandates is the wrong medicine and will frustrate all middle-class Americans.
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