I'll gladly pay you Tuesday for a health care plan today


Schwarzenegger proposes universal medical care for California

For someone who places so much value on Friedman's Free to Choose, the Governor of California just took a socialist turn.

Gov. Arnold Schwarzenegger today proposed upending just about every portion of the healthcare industry in one of the country's most elaborate efforts at holding down medical costs and expanding insurance to those who don't have it.

Schwarzenegger's plan, which he publicly unveiled at noon, would require employers with 10 workers or more to buy insurance for their workers or pay a fee of 4% of their payroll into a program to help provide coverage for the uninsured.

Schwarzenegger would tax doctors 2% of their gross revenue and place a 4% tax on hospitals. He campaigned for reelection on an anti-tax platform, but his administration argues that so many more people would have insurance that medical providers would make more money.

The governor also wants to ban insurers from refusing to offer coverage to some individuals because of their prior medical conditions. Insurers would also have to spend at least 85% of their premium revenues on patient care, a move that would limit the amount companies spend on administrative costs and profits.

Prediction number one - There will be fewer doctors in California.

Prediction number two - There will be fewer insurance companies offering medical insurance in California, and of the ones that remain, there won't be enough.

Prediction number three - Major employers will leave California. Wait, that is already happening...

Prediction number four - In about ten years, there will be a push for the Federal government to bail out California's health care crisis. Look for the southern part of the state to be the first to really feel the pinch.

Wish I was wrong on this. But it is necessary.

The plan doesn't attack any of the underlying problems, it just shifts cash around. Unfortunately, it will increase the demand for health care and health care providers far beyond the current levels. "There's no such thing as a free lunch," but that doesn't stop people from taking advantage of the system when they think it won't cost them anything.

— NeoWayland

Posted: Mon - January 8, 2007 at 07:51 PM  Tag


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