nos-trum. pronunciation: \nos'-trum\. noun. Etymology: Latin, neuter of noster our, ours.
1. a medicine of secret composition recommended by its preparer but usually without scientific proof of its effectiveness.
2. a usually questionable remedy or scheme.
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Sunday, April 11, 2010

Poison Pills Of The Day: HC Premiums (For Those Who Actually Pay)

Two more financial "time bombs" awaiting us in ObamaCare:  Community Rating and Guaranteed Issue (Poison Pills #9 and #10)

Yesterday was a fun day:  a humorous Medical Quote of the Day, a doctor cartoon, and a sarcastic rant about worthless research.  I'm feeling better now.

But then, OUT OF THE BLUE, the Associated Press publishes a story about Tax Day.  Everybody knows the significance of April 15th.  The shocking part is where "47 percent will pay no federal income taxes at all for 2009," and "The top 10 percent of American earners will pay a whopping 73 percent of federal income taxes." 

There goes the day.

It's a progressive tax.  I get it, and we need it.  But, how come we've been hearing for years that the rich are soaking the poor?  I'm not as bothered by the "10% pay 73% " part.  But I'm stunned that almost half will pay nothing, and a large part of them will actually "gain" income from exclusions, exemptions, subsidies, and credits. 

At some point more than half the country will be living off the remaining less than half.  I doubt we will ever be able to roll that back.

Forty years in the workplace, managing people, has taught me that people do not value things for which they invest no blood, sweat, and tears. 

In any case, this is a medical blog.  I need to get back on track...but stay on the money theme.

I've been talking about the financial disaster that ObamaCare creates until I'm blue in the face.  So, rather than keep blathering on about it, I'll just point to an article in CNN Money today via Real Clear Politics that points out two new poison pills in the legislation.

1.  Guaranteed issue:  accept all customers regardless of their medical condition.
2.  Community rating:  all customers pay the same rate regardless of either their age or medical status.

For instance, in New York it would be illegal to offer you a lower premium if you get your cholesterol under control.  In Arizona, you can qualify for a lower rate.  Is that a perverse incentive, or what?

If you wonder why the premium--for comparable health insurance policies--is $1500.00 a month in New York versus $300.00 in Arizona, it's worth a look.  If you're not interested, well, it's your money.

If you do look into it, then ask yourself:  who is responsible for this discrepancy?  It aint the insurance industry; it's government bureaucrats who set it up this way.  Remember that next time you hear Obama demonize the health insurance industry.

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