Friday, June 07, 2013

It’s about the money, not your health

Obamacare makes perfect sense if you follow the money, because that's what it is about. Our current employer based system was put in place after WWII as a way to attract workers. But now since it is virtually required and very regulated, it is the standard, not the exception as it was in the 1940s. Only 6% now buy insurance through the non-group market.

Employers' spending on health insurance premiums is exempt from taxation for both employers and employees. When my husband was a partner in an architectural firm he had to buy insurance with after tax dollars (owners weren't part of the benefit plan); when I became a regular employee at Ohio State (not contract or part time) I picked up the insurance for both of us and we probably saved/made an additional $300-400 a month 25 years ago.

The federal government isn't happy about "subsidizing" our health insurance, and wants those tax dollars so it can run its own program. ". . .it reduces federal and state tax revenues by $260 Billion per year and is the government's third largest expenditure on health care, after Medicare ($400 Billion) and Medicaid ($300 Billion)." You see, the government thinks it rightfully belongs to them.

http://www.nber.org/bah/2010no1/w15766.html

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