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Healthcare, McCain Style
HEALTHCARE, McCAIN STYLE....Joe Klein wants to get out of the gutter and talk about the issues:
Today's issue: health insurance. John McCain wants to tax your employer-provided health care benefits. He wants to replace those benefits with an insufficient tax credit — $2500 for individuals and $5000 for families (the average cost per family for health insurance is $12000).
....It is amazing to me that Obama campaign has let things go this far without pointing out that McCain — who opposes the energy bill because it would increase taxes on oil companies — is actually proposing a tax increase on health care benefits for American workers. But that is precisely what the Senator from Arizona is doing.
Let's unpack this. If you get health insurance through your employer, as most Americans do, you don't pay taxes on it. Under McCain's plan you would. So if the insurance premium for your family is $14,000 (the best estimate available for 2009), you'll pay federal income tax, state income tax, and payroll tax on that amount, and your employer will pay the employer share of the payroll tax on it. For an average family, that comes to about $4,900.
But McCain's plan provides you with a $5,000 tax credit, so you're ahead of the game. Everything is OK.
Except there's some fine print hidden where McCain hopes no one will see it: his tax credit increases each year only by the normal inflation rate. Your premiums are going to increase way faster — probably around 6-8% per year. That means your taxes are going to go up 6-8% per year too. The chart on the right, courtesy of CAP, shows the gory details: the tax credit doesn't keep up with the increase in tax payments. In other words, your taxes go up.
If you're in a somewhat higher tax bracket than the median, the news is even worse because your marginal federal tax rate is higher. If you live in a high-tax state like California, the news is even worse because your marginal state tax rate is higher. If you have a big family, the news is even worse because your premium will be more than $14,000 and the taxes you pay on it will therefore be higher. If your employer decides to ditch group healthcare entirely because there's no longer any tax advantage to it, then you're really screwed. And if that happens and you happen to have a chronic illness that no private insurer will touch — well, screwed hardly begins to describe it.
So that's McCain's healthcare plan: make it more expensive, make it riskier, and for some people, make it nonexistent. There's more to say about this, and you can get all the details in this CAP report written a couple of months ago. This stuff is hardly a secret.
It is amazing to me that Obama campaign has let things go this far without pointing out that McCain ? who opposes the energy bill because it would increase taxes on oil companies ? is actually proposing a tax increase on health care benefits for American workers.
No, Joe Klein--Obama has pointed this out,repeatedly. The problem is that you and your collegues don't listen--you're too distracted by the latest shiney thing dangled in front of you by that great straight-talker, McCain:
Now, I don't believe that Senator McCain doesn't care what's going on in the lives of Americans; I just think he doesn't know.
Why else would he define middle-class as someone making under $5 million a year? How else could he propose hundreds of billions in tax breaks for big corporations and oil companies, but not one penny of tax relief to more than 100 million Americans? How else could he offer a health care plan that would actually tax people's benefits, or an education plan that would do nothing to help families pay for college, or a plan that would privatize Social Security and gamble your retirement?
It's not because John McCain doesn't care; it's because John McCain doesn't get it.
For over two decades -- for over two decades, he's subscribed to that old, discredited Republican philosophy: Give more and more to those with the most and hope that prosperity trickles down to everyone else.
In Washington, they call this the "Ownership Society," but what it really means is that you're on your own. Out of work? Tough luck, you're on your own. No health care? The market will fix it. You're on your own. Born into poverty? Pull yourself up by your own bootstraps, even if you don't have boots. You are on your own.--Obama's acceptance speach at the convention.
And if that happens and you happen to have a chronic illness that no private insurer will touch ? well, screwed hardly begins to describe it.
It's actually pretty easy to describe. You probably die a lot earlier than you otherwise would, and you die in a great deal of pain.
It is amazing to me that Obama campaign has let things go this far without pointing out that McCain ? who opposes the energy bill because it would increase taxes on oil companies ? is actually proposing a tax increase on health care benefits for American workers.
No, Joe Klein--Obama has pointed this out,repeatedly. The problem is that you and your collegues don't listen--you're too distracted by the latest shiney thing dangled in front of you by that great straight-talker, McCain:
Now, I don't believe that Senator McCain doesn't care what's going on in the lives of Americans; I just think he doesn't know.
Why else would he define middle-class as someone making under $5 million a year? How else could he propose hundreds of billions in tax breaks for big corporations and oil companies, but not one penny of tax relief to more than 100 million Americans? How else could he offer a health care plan that would actually tax people's benefits, or an education plan that would do nothing to help families pay for college, or a plan that would privatize Social Security and gamble your retirement?
It's not because John McCain doesn't care; it's because John McCain doesn't get it.
For over two decades -- for over two decades, he's subscribed to that old, discredited Republican philosophy: Give more and more to those with the most and hope that prosperity trickles down to everyone else.
In Washington, they call this the "Ownership Society," but what it really means is that you're on your own. Out of work? Tough luck, you're on your own. No health care? The market will fix it. You're on your own. Born into poverty? Pull yourself up by your own bootstraps, even if you don't have boots. You are on your own.--Obama's acceptance speach at the convention.
And if that happens and you happen to have a chronic illness that no private insurer will touch ? well, screwed hardly begins to describe it.
It's actually pretty easy to describe. You probably die a lot earlier than you otherwise would, and you die in a great deal of pain.
Just entered the WashPost electoral vote contest: 278 McCain, 260 Obama.
Had I completed the form on Monday, it would have been 274 McCain to 264 Obama.
Lovely how the election is going, huh?
Ah Dems -- staying right where I want them: thinking facts and policies matter.
The average family will pay $14,000 for health insurance next year and they will still have to argue with their provider over half of everything they claim. Who exactly are these people who are so enamored with the American healthcare system?
Kevin, that's a very good explanation, but how do you fit it on a bumper sticker? Unfortunately in American politics, if an argument lasts longer than a sentence, you lost it. That's why Republicans win.
The people enamored are the ones with excellent coverage - a smaller and smaller population every year.
Wait a minute. I have excellent coverage, and I'm not enamored of the system because I realize how precarious the whole scheme is.
Correction: the people who love the American system are the ones with excellent coverage who are either a) too lazy to keep up with current affairs, b) too stupid to keep up with current affairs, or c) employed by the healthcare industry.
Woah! You forgot to mention that when the employer finds out how much extra tax HE will pay to match the new taxes YOU will pay, HE will end your insurance plan.
THAT is the end result; no more insurance at your job. Unless you are upper exec management, they always get the perks anyway.
This should be an argument that Obama can get out to swing voters. McCain will hurt your bottom line and could very easily leave you bankrupt and w/o health care once your employer decides to ditch your every-increasingly expensive health care benefits. He needs to lay it out just like you did at every debate. Biden needs to lay it out. People will really be F-ed if McC/Palin pull this off. No matter how strong your faith it doesn't pay the bills.
You don't stick this on a bumper sticker. You do it on a 30-60 second commercial you buy on "the view." This is a household income issue that women will understand. It is a killer if you do the right commercial.
By the way, you really can describe McCain's health plan in 30 seconds. Just tell the viewers that it will increase their taxes and make their insurance riskier.
Actually, ignore my above post. This should be an ad in every f'ing state in the union. John McCain wants to raise your taxes. John McCain wants to raise your taxes. John McCain wants to raise your taxes. You will lose your health insurance and he will raise your taxes. Repeat it over and over until everyone knows it
"THAT is the end result; no more insurance at your job."
For some of us, that's actually a feature. I'm self-employed, so I have to buy my own insurance anyway. I don't buy it because my preexisting conditions will prevent me from actually being covered. If the rest of the country had to buy their own insurance, there would be a lot of anger about individual insurance plans. And maybe something would change. Basically, McCain's plan puts the rest of you in my boat. And trust me, you won't like it. You'll want the changes in the law that I've wanted for years.
Excellent analysis, Kevin.
For all his posturing about "discussing issues," Klein's presentation was inept. You filled in the blanks nicely.
It is amazing to me that Obama campaign has let things go this far without pointing out that McCain who opposes the energy bill because it would increase taxes on oil companies is actually proposing a tax increase on health care benefits for American workers.
No, Joe Klein--Obama has pointed this out,repeatedly. The problem is that you and your collegues don't listen--you're too distracted by the latest shiney thing dangled in front of you by that great straight-talker, McCain:
Now, I don't believe that Senator McCain doesn't care what's going on in the lives of Americans; I just think he doesn't know.
Why else would he define middle-class as someone making under $5 million a year? How else could he propose hundreds of billions in tax breaks for big corporations and oil companies, but not one penny of tax relief to more than 100 million Americans? How else could he offer a health care plan that would actually tax people's benefits, or an education plan that would do nothing to help families pay for college, or a plan that would privatize Social Security and gamble your retirement?
It's not because John McCain doesn't care; it's because John McCain doesn't get it.
For over two decades -- for over two decades, he's subscribed to that old, discredited Republican philosophy: Give more and more to those with the most and hope that prosperity trickles down to everyone else.
In Washington, they call this the "Ownership Society," but what it really means is that you're on your own. Out of work? Tough luck, you're on your own. No health care? The market will fix it. You're on your own. Born into poverty? Pull yourself up by your own bootstraps, even if you don't have boots. You are on your own.--Obama's acceptance speach at the convention.
One of the reasons that our health care system is so screwed up is that my employees are pretty much stuck with whomever I choose for their health insurance. Don't get me wrong -- we have a nice plan -- but when there is a disagreement, its impossible for my employees to switch to a more friendly company.
And I'm not happy, because I've got more important things to do than work on employees' health care -- bringing in the next contract comes to mind.
Until you get people like me out of the loop, we can expect massive dissatisfaction. I believe that McCain is trying to address that.
By the way, having blogged a little, I can tell you that if you want to make Joe Klein feel good, go read his column. He will know if there is an increase in hits. It just might encourage more issue oriented columns.
Don't forget that some of us live in states with income taxes. I bet my state doesn't give me a credit.
We are doomed.
What is this going to do to school disricts? One of the bigest expenses for a school district is salary and benefits. If McCain's plan passes,then that money has to come form somewhere i.e. your property taxes goes up.
Everett said: "Until you get people like me out of the loop, we can expect massive dissatisfaction. I believe that McCain is trying to address that."
Are you going to raise your employees wages enough to cover the increased cost once you decide you can't afford the premiums anymore? A single payer system would also get you out of the loop. McCain is again showing an amazing level of ineptitude at addressing the real problems in America.
So where are Obama and the Democrats? It's an explosive charge. McCain wants to tax your healthcare. Make him explain (not that he can) What's the downside?
Where the hell are they are this?
Dru, I'd be thrilled to raise my employees' wages by the premiums I'm spending. I'd even be willing to go a little higher, in order to eliminate the hassle. It costs extra overhead to deal with health care, that I no longer would have to spend.
A single-payer plan would also get me out of the loop. However, that would be harder to achieve. McCain's approach is evolutionary, rather than revolutionary.
And if that happens and you happen to have a chronic illness that no private insurer will touch well, screwed hardly begins to describe it.
It's actually pretty easy to describe. You probably die a lot earlier than you otherwise would, and you die in a great deal of pain.
Everett - While I agree that employers should get out of the healthcare business, building in a hidden incentive to make that happen without providing an alternative (which is what the McCain plan does) is a disastrous way to go about it. What are all those uninsured people supposed to do while the solution "evolves"? While I applaud that you would raise your employees' salaries, I can guarantee that not all the employers that currently offer health benefits will replace them with higher compensation if they decide to drop employee health coverage. In fact, I'd wager that a large percentage of them won't.
Everett: I think the problem is that first off, many employers wouldn't raise the wages to effectively offset the increase in employee's costs. Secondly, those who cost more to insure (pre-existing conditions, etc) will have their costs go up so much that even nice employers won't give them enough of a raise. 3rd, McCain's evolution might truly cause a survival of the fittest.
Wah, wah, wah. Quit crying you namby-pambies. Thanks to DOMA, I *do* pay taxes on my health care coverage received through my partner's employer. Can't be treating this like marriage. While I disagree with McCain's policies, I see no need to protect people who willingly push this policy on me from a taste of their own medicine.
The health care tax would come right out of the teachers pockets. The school district wouldn't be required to pay it so property taxes wouldn't go up. As a teacher I have great health insurance but the coverage costs in excess of 20K per year. It's hard not to think that this was aimed at the public school teachers in particular from an antagonistic republican party.
The simple bumpersticker slogan is:
"McCain Wants to Tax Your Health Care Benefits"
Everett: You're getting beaten up a little unfairly. I sympathize with you. But I have a question: what do you think about the Japanese model? To me, it seems pretty workable. It keeps the insurance companies involved, but guarantees coverage. My problem with the current system is that insurance doesn't actually provide insurance. My problem with single payer is that it will never happen. The Japanese system seems achievable and effective.
Adrienne, those employers who refused to raise wages to meet health care costs would find that they had lost their best people to their competition. No one wants to run a company full of second-string employees. They'd pay with higher salary costs to get less work done.
Fostert, I'm not familiar with the Japanese model. Perhaps you could provide a link.
A more palatable approach might be to just give to individuals the same tax break on health benefits that their employers get. I don't understand why McCain didn't go that route. At least that approach would answer the bumper stickers!
"A more palatable approach might be to just give to individuals the same tax break on health benefits that their employers get."
That's a good start, but it doesn't solve my problem. I would be fine if insurance contracts worked like business contracts. The problem with the current system is that insurers have the right to deny coverage at their whim. They have unilateral rights to change the contract, and I don't. I'd be happy to sign a contract that says I'll pay premiums for the rest of my life in exchange for guaranteed benefits. But, in the current system, benefits can be removed at any time and premiums can be raised at any time. The insurance company is not held to any contract. My only option if the insurance company won't pay is to stop paying them and lose all the money I've already paid them. It's a contract that I won't sign. Until there are guarantees of coverage, private insurance doesn't work unless there is a large group that can hire a permanent legal team.
As for the Japanese system:
http://unpan1.un.org/intradoc/groups/public/documents/APCITY/UNPAN020063...
Reading it, I'm a little less supportive of it, but it would still be an improvement over ours. I guess there's still some bugs to be worked out. It's basically a single player plan with private insurance companies assuming much of the risk. From what the UN is saying here, it seems the private companies are assuming less risk than I had previously thought. Regardless, I do think the idea of universal and guaranteed coverage can be accomplished through private insurers. But the devil will obviously be in the details. For me, the only issue that matters is the guarantee. I don't care who I have to pay to get coverage, but I'm not paying until I know I'll have coverage.
sorry for the double post.
"The simple bumpersticker slogan is:
"McCain Wants to Tax Your Health Care Benefits""
And the response bumper sticker is:
"McCain wants to give you a tax break on insurance."
How does one defeat McCain's counter argument in one sentence? Kevin defeated it soundly, but it's too complex an argument for American people to understand. So it doesn't really help us.
Fostert,thanks for writing the bumper sticker for me. I thought it would be too snarky if I did it myself. ;-)
If my quick reading is accurate, the Japanese approach relies heavily on employers for health care. I would not favor that for reasons stated above.
Please remember this point. If we do nothing, then we keep someone like me interposed between you and your health insurer. Surely it would be worth something to you to get someone like me out of the way.
"If we do nothing, then we keep someone like me interposed between you and your health insurer. Surely it would be worth something to you to get someone like me out of the way."
Umm, no. I'm self employed. There is nobody in between me and any hypothetical insurer. The fact is, I want something between me and my insurer. I want the law there. I want our laws to guarantee the contract. The insurance companies we have now are no better than loan sharks. We have laws against loan sharks. Can't we have laws against the fraud that insurance companies commit? If you have a group plan, it's at least backed by a team of ruthless lawyers. But if you're an individual, you can't buy that team of lawyers. So you don't get covered.
My current health plan is simple: if I get sick, I fly to Thailand to get medical treatment. And I pay cash. It's much cheaper than paying cash here. And that's true even for people with insurance. The cost of medical treatment in Thailand is cheaper than the co-pay here in the US. And it's only a $700 upfront cost for the plane ticket. You can spend $700 in the US by just looking at a doctor. The treatment, of course, will cost more. What those of us without insurance are forced to pay is totally outrageous. And I'm not paying it. There are plenty of Thai doctors who would love to take my money.
The problem with the McCain version of the slogan is that is essentially a lie. You weren't paying on health care before, now you are and he's giving you an offset to the tax he just created.
John McCain's plan creates both a new tax and more complexity in the tax code - that's change alright, change for the worse.
I have to pay for my family's health insurance and I don't make enough to itemize deductions. I think there are more democrats like me than Republicans. McCain's plan would help us a lot and redress a long-time inequity. So, there is at least one thing McCain is for that I am for--sort of. Actually, it would be better to make all health insurance payments deductible.
This should be an argument that Obama can get out to swing voters.
Posted by: dru on 09/11/08 at 2:48 PM Respond
Obama doesn't make arguments. Obama tells people McCain is a good man, who happens to vote with Bush 90% of the time. Sometimes, Obama says the words "change" and then "new kind of politics." Sometimes, Obama says the words "new kind of politics," and then "change," just to mix things up and keep people guessing.
fostert said:
"The simple bumpersticker slogan is:
"McCain Wants to Tax Your Health Care Benefits""
And the response bumper sticker is:
"McCain wants to give you a tax break on insurance."
You don't need to make a counter argument. Just keep making the point that McCain wants to tax your health benefits, and that this will put your health benefits at risk.
The number of Americans who pay for private health insurance is minuscule. An order of magnitude more receive benefits through work.
I really don't understand why Obama isn't hammering McCain on this one. Are they waiting for the last few weeks of the election to prevent a counter argument from being created? I really can't think of any other reason.
What frustrates me the most about this whole thing is that McCain probably doesn't have a clue what the real effect of his policy will be. If he doesn't understand economics, can't use a computer, doesn't know how many homes he owns and thinks that the middle class includes people who make $5 million a year, could he possibly understand the dollar and cent reality on a typical family that his convoluted health care plan will have? The unwashed masses will be doing more than whining if this proposal ever becomes a reality.
This is the traditional approach Republicans take, when pushed for real change.
First they claim that they are the ones pushing, then they come up with a plan that gives you a nickel while it takes a dime, and leaves the old corrupt system in place.
----
Teevee rots your brain.
The Dems need to learn how to do this: find where your opponent is weakest, and hammer on it. Don't give a long list of the things McCain is wrong about, find one that voters will really be disturbed by and keep repeating it. Sound bites are what the Repugs have been beating you with, sound bites are what you'll beat them with.
Health care. Wow what a concept. The plan I have now is so simple. Get sick/die.
No one has yet mentioned yet that if you do happen to have a major illness, and you have to find a new job, that you won't get hired anywhere. They will check your health records, and into file thirteen your resume goes. Been there, done that, hated it.
He is. It just isn't getting thru the lipstick noise in the MSM.
Thanks for the article and clearing up some questions I had on McCain's healthcare plan.
One would think that the basics of this plan would be reason enough not to vote for McCain, however, most voters don't have a clue where the candidates stand on any of the issues--they really dont care until the consequences of voting for that candidate hit them in the pocket book.
The GOP base is energized because of Palin. It doesnt matter that she is not ready to be Vice President--what matters to the republican voters I know in Texas is that she is a woman, will fight to overturn Roe vs. wade, likes to hunt and kill animals, and she will help get the judges appointed who are right wing extremist.
Those same voters are the ones that voted for Bush (twice). It didnt matter that Bush lied us into a devastating war, destroyed our economy, ruined the US reputation worldwide and made us all look like fools.
I think what really excited the right wing was when Palin kept saying "nu-cue-lar" in her interview with Gibson--just like Bush. The right wing doesnt care if their president or vice president is smart or qualified--it seems they want the candidate that is not informed on the issues and not ready for the job.
Thanks for the explanation. I translated this into a 250-word letter to the editor, which will be going out to the swing state papers tonight!
Nurses are not enamored with the current health care system. We have been fighting to change it for years. We often can not provide safe care..... much less quality care, because of the "cost cutting" that is happening through the health insurance industry and the impact of those who have no insurance at all. The system is much more broken than anyone (who doesn't work in a hospital) will ever know. Medical error is one of the leading causes of death in this country.....and most of it goes "unreported". We need a single payer system NOW.