#1 Problem with McCain

http://www.businessweek.com/bwdaily/dnflash/content/apr2008/db20080429_854428.htm

I would love for my friends and family, who support John McCain’s candidacy, tell me I am wrong on this topic. This is the biggest issue I take with John McCain from a policy position. Tabling the lackluster decision for a VP candidate or his temper, on just a nuts and bolts policy, I cannot understand how anyone in the middle class with good conscience supports a candidate advocating for the following: do away with the employer-based tax exemption and a tax credit to individuals to help them buy their healthcare.

Right now, as per the link: “Kaiser Family Foundation survey released last year found the average annual premium of an employer-based insurance policy is $12,000, of which employees pay about one-third.”

Taking this a step further: “McCain's plan is meant to encourage individuals to purchase their insurance and free companies from the heavy cost of providing coverage. His theory is that employees would take their tax credit and flock to the open market, where they could shop around for the plan that best meets their needs. Insurance companies would have to become more competitive to win their business.”

Here is the last premise I know to be a component of his plan. To this, McCain is proposing the following: “Instead, he would give a $2,500 annual tax credit to individuals, and $5,000 to families, to purchase their own coverage.”

Let’s add this up in classic logic:
The annual premium of employer-based insurance policy is $12,000 (I know the “conservatives” will argue the free-market will change that, but no one can dispute that companies don’t already pursue competition for their best rates; moreover, they buy in bulk). Therefore $12,000 is hopeful, but let’s stick with that for argument’s sake - $12,000
McCain’s plan offers $2,500 to individuals, and $5000 to families for their own coverage purchased
As it stands, if I have a family, and I am fortunate enough to get health coverage for $12,000, I am left with a $7,000 bill.

Now, I know that people can speak to the “Open Market,” which will encourage price competition. All that is doing is relegating folks with less money to be forced to buy poorer “discount” health insurance plans. We all know that there will be different levels of insurers, many of whom will offer plans with overly skimpy coverage.

Senator McCain, look at what took place with the Sub-Prime mortgages! Take uneducated poorer folks, and throw competition at them! Of course, under the assumption that they’ll not be duped by discount insurance salespeople, this works fine. This is the most inept bit of healthcare planning I have ever seen. I’ve not heard nearly enough discussion around a plan this daft. Heaven-forbid horrible things happen to people, but when they do, under this plan, how easily they’ll be deficient of coverage or in Chapter 11. This healthcare plan is morally irresponsible and incredibly short-sighted. At best, it just leaves the average working middle class tax payer with a $7000 increase in bills—good idea!