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Obama's Draft

One key element of most of the proposals for health care finance reform -- especially those pushed by Obama and the Democrats -- is a little thing called "mandatory universal coverage."

This means that everyone gets some kind of health insurance plan.

More specifically, everyone pays for some kind of health insurance plan.

When pressed, the advocates all say the same thing -- that without mandatory universal coverage, the plan simply won't have enough money to succeed. In other words, it requires everyone to pay in -- especially young people who won't put too many demands on the system.

Let that percolate through your mind for a minute or two.

Young people -- Americans -- will be required to pay for a program that they are being told, up front, that they are not supposed to get full value for their payments for years to come.

Ever talked to a young person after they receive their first pay check? Especially right after they read all the deductions and withholdings and whatnot? The line "who the hell is this FICA person, and what is he doing taking MY money?!?!" is oft uttered.

Young people often minimize their deductions. The reasoning is simple: most of them are just starting out, just learning how to manage their finances, and most often have low-paying jobs. They need every penny they get.

One place they often skimp is on health insurance. Their reasoning is simple: I'm young, I'm healthy, I don't need to pay a hunk out of every paycheck for something I don't need. Most of them either skip it entirely, or sign up for only catastrophic coverage.

This is how a friend of mine handled it. And a few months, his decision was put to the test. He was hospitalized with a bad case of the flu, and was looking at a couple of grand in uncovered charges.

Then he got a phone call that saved his ass. It turns out that the early tests were wrong -- it wasn't ordinary flu, but swine flu. He was New Hampshire's 27th case. That triggered his catastrophic plan, and he ended up paying less than fifty bucks.

Will he have the same plan next year? I dunno. He's got a new child, so I suspect not. But he made a calm, rational decision, played the odds, and lucked out.

That won't be the case under ObamaCare.

For years, it's been a cliche' to quote liberals as saying "think of the children!" In this case, though, it's true -- they've thought of the children and are seeing dollar signs.

In a sense, it's just another "draft." The older generation wants something done for their benefit, they can't swing it on their own, so they're shanghaiing the youth of America to bear the burden.

"But it's for the common good!" That's the eternal cry of the socialists. For the sake of the many, the individuals have to make some kind of sacrifices. It's rarely the ones proposing the sacrifices who will actually have to make them, of course -- they fulfill their moral obligation simply by demanding others perform their good deeds for them.


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Comments (12)

If there is anything the "O... (Below threshold)
recovering liberal democrat:

If there is anything the "O" and liberals do to show contempt and disdain for the American economy, and people, this is it. If there is any doubt they want to see America as a second rate country with a diminishing role in the world this is their coup de gras.

If your young friend earns ... (Below threshold)
kathie:

If your young friend earns a pay check he is paying into Social Security, that if still around, he won't use for 40 years. If he owns a home he should own an insurance policy for himself and family. A sickness could cost him his home! Catastrophic medical insurance is less expensive and more affordable then a hospital bill, especially having children. Young people need to be smarter.

Why does he need to be smar... (Below threshold)

Why does he need to be smarter, kathie? With ObamaCare, he's all taken care of. He can be as dumb as he chooses; Big Nanny Government will make his choices for him.

And isn't that so much better than learning to take care of yourself? Why bother learning from your mistakes, if you're going to be protected from any consequences for them?

J.

Hey, it'll teach those libe... (Below threshold)
Maggie Mama:

Hey, it'll teach those liberal college students to do a little more research before voting with the herd.

I find no contitutional pow... (Below threshold)
Zelsdorf Ragshaft III:

I find no contitutional power given government to force or coerce me into purchasing a product. I will not sign up, and I will not pay any penalty tax. If they try I will sue or take the matter to court. Obama is operating outside the constitution and should be removed from power. I would like to see impeachment however the ever growing importance that this debacle of a government be curtail before disaster befalls us all that I am open to suggestion.

I beg your pardon! You stat... (Below threshold)
Mary:

I beg your pardon! You state; "The older generation wants something done for their benefit, they can't swing it on their own."
I know of no one in the older generation who is asking for a handout, only asking to be allowed to keep what little we have left.

I was in the workforce for sixty years, paying tax, SS, Insurance, all the requirements of being charged to work at a full time job.
My SS is being threatened, my pension and savings are losing at a rapid rate, 401! I had to forget about that.

I have health insurance I can afford and helps to cover what Medicare does not. Even so, I dare not have a long hospital stay, as it would probably bankrupt me.
Please do not tell me the older generation is asking for anything. We tried to plan ahead.
It was not the older generation who elected the current president who is destroying our country.

Mary, I meant "older" as in... (Below threshold)

Mary, I meant "older" as in "those who are't part of the younger group that is being targeted here." It's the same age group that was targeted for the draft that's being targeted here, but this time there are no exceptions for young women, only children, conscientious objectors, or the like.

No offense was intended.

J.

When will Americans wake up... (Below threshold)
averagemelon:

When will Americans wake up to this extortion scheme? I think we should all not bother to pay and let them try to put us all in jail over it. My 22 year old is working on a SECOND degree because there are no jobs for her first one. She lives at home and works at the college for 5 hours a week. My other teen age children cannot find a job. How are you going to get money from them? THEY ARE POOR. Why would anyone go to work to pay someone else all their earnings? This idea is rotten, whole cloth.

His draft, or the folks who... (Below threshold)
epador:

His draft, or the folks who own the pursestrings for whom he is fronting, the Democrat legislators who are writing the largest draft ever on all of our accounts. Puns intended.

My son is already resigned ... (Below threshold)
GarandFan:

My son is already resigned to the fact that he's going to get raped by the Feds during his working life, and get damned little or nothing later on.

I'll be interested in seeing how the Feds are going to demand proof of health insurance. Whatever it is, my entry will be "REFUSED TO STATE - 5th AMENDMENT". I'll also refuse to pay any penalty, they can take me to court.

As for rounding up the young for health insurance fleecing, what do the idiots supporting "no pre-exiting conditions exclusion" think happens with insurance? You don't buy homeowners insurance the day your house catches fire. You don't buy car insurance AFTER you've been in an accident.

Insurance is pooled risk. Letting people into the pool who will immediately start collecting from it means the pool had better be pretty damned big with those who won't be collecting.

If it's determined that the government can't force one to buy health care insurance, then those still in the pool will pay higher premiums. This will cause those with less risk of needing insurance to buy a still lower cost (deductible) policy. The pool of money will be reduced, and once again premiums will rise in the higher risk pool. Sooner or later your left with only the "pre-existing condition" people who can't pay enough to cover all their risk. enter the American taxpayer to save the day.

Yeah, ObamaCare will be wonderful. Just like Medicare which is heading for insolvency, just like Social Security, heading for insolvency.

averagemelon, tell your chi... (Below threshold)
Baron Von Ottomatic:

averagemelon, tell your children to follow John Derbyshire's advice - get a government job. Mandatory raises, almost impossible to get fired, and virtually zero chance of being laid-off. Plus the sweet benefits and generous pensions.

Tell the one with a degree to look into alternative teaching certification programs.

I'm actually considering going through one of the alternative certification programs myself. All of the above, plus summers off. I'd have to take a serious short-term hit in pay though. Might be worth it long-term since it's guaranteed employment for as long as I'd need it.

What people don't know abou... (Below threshold)
Mac Lorry:

What people don't know about social security is that it's another progressive tax, at least for people making under the maximum ($97,500 in 2008). How can that be given everyone pays in at the exact same percentage rate (employee+employer or self-employed) on every dollar the government classifies as wages? Well the redistribution happens on the payout side.

To figure your full retirement benefit, such as at age 66, the social security administration converts all the wages you made to current dollars through a process called indexing. For example, wages you made in 1973 are multiplied by the index of 5.1 to get your indexed wage for that year. The wages you made in 1983 are multiplied by an index of 2.54 to get your indexed wage for that year. Once they have the indexed wage for all the years you worked they take your top 35 years and add them up. They then divide that total by 420 (the number of months in 35 years) to get your indexed monthly average wage.

Now here's where the progressive magic starts. They take the first $744 of your indexed monthly average and multiply it by 90%. That amount goes toward the amount you'll get each month once you retire. They then take the amount of your indexed monthly average over $744 up to $4,483 and multiply it by 32%. Once again, that amount goes toward the amount you'll get each month once you retire. Then they take the amount of your indexed monthly average over $4,483 and multiply it by 15% and that's added to the amount you'll get each month once your retire.

Someone with an indexed monthly average of $744 gets back 90% of their average monthly wage when they retire. Someone with an indexed monthly average of $3,000 gets back 46% of their average monthly wage when they retire. Someone with an indexed monthly average of $6,000 gets back 35% of their average monthly wage when they retire.

Once again, that's the full retirement amount. If your full retirement age is 66 and you retire at 62 your amount is reduced by 25%. If you retire at 70, your amount in increased by 32%.

If you think the system is progressive now, just wait until Obama gets around to reforming social security. No doubt they'll want to give illegal aliens credit for all the years they didn't pay into the system because they were using either a fake or stolen social security number.

Consider the gender issues. Women typically made less then men looking back 40 years, so they'll get a higher percentage of their indexed average monthly wage when they retire. Also, women live longer then men and there are more of them by retirement age, so there are more women to collect it and they'll collect it longer. If you combine these effects you'll find that women collect about 75% of every dollar paid into social security. I bring this up because women have the most to lose when Obama starts messing with social security.




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