In this week's Liberty Update we highlight the potentially catastrophic threat of H.R. 3, the healthcare…
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Notable Quote: WSJ on H.R. 3, Biden & Pelosi's Dangerous Healthcare Bill

In this week's Liberty Update we highlight the potentially catastrophic threat of H.R. 3, the healthcare and drug price control bill that Joe Biden and Nancy Pelosi are attempting to rush through Congress.  The Wall Street Journal helpfully offers further insight this morning on how H.R. 3 would threaten lifesaving U.S. pharmaceutical innovation and leadership, including on things like the Covid vaccines:

Companies that refuse the government’s price must pay a 95% excise tax on all revenue they generate from that drug in the U.S.  They’d also have to offer the government price to private insurers.  There’s no “negotiation” when a gun is pointed at your head.  A new study in the Journal of the American Medical Association estimates that drug spending in the U.S. would…[more]

September 23, 2021 • 10:23 AM

Liberty Update

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ObamaCare’s Higher Premiums, Deductibles Act as Massive Wealth Transfers Print
By Ashton Ellis
Thursday, October 17 2013
At the state level, the health law’s mix of mandates is forcing consumers to pay higher premiums, higher deductibles or both.

With health insurance premiums and deductibles spiraling out of control, ObamaCare is looking more and more like a vehicle for massive wealth redistribution.

It hasn’t been a fun two weeks to be Health and Human Services Secretary Kathleen Sebelius. Shoddy work by foreign contractors rendered Healthcare.gov, the federal ObamaCare exchange, mostly inoperable since it went online October 1. Error messages and frequent crashes kept the vast majority of users from even creating an account, much less shop for health insurance.

At the state level, the health law’s mix of mandates is forcing consumers to pay higher premiums, higher deductibles or both.

In North Carolina, one family’s Blue Cross and Blue Shield monthly premium went from $380 to $1,124.50, reports the Christian Science Monitor. Adding to the financial squeeze, the plan’s $11,000 deductible remains unchanged.

An analysis by the Chicago Tribune revealed that “21 of the 22 lowest-priced plans offered on the Illinois health insurance exchange for Cook County have annual deductibles of more than $4,000 for an individual and $8,000 for family coverage.”

California’s second-lowest tier of ObamaCare plans comes with a $2,000 annual deductible, according to Bloomberg.com.

For reference, the Internal Revenue Service considers an individual plan to have a high deductible if it is $1,250 or more a year.

Higher deductibles mean higher out-of-pocket spending for policy holders before insurance kicks in. One way ObamaCare supporters have tried to claim victory is to focus attention on the smattering of lower-than-expected premiums in some plans, while ignoring the spike in deductibles across-the-board. But taken as a whole, the appearance of lower premiums in a few plans is dwarfed by the reality that private health insurance is going to be considerably more expensive under ObamaCare.

None of this is surprising given that ObamaCare’s central policy aim is to increase the number of people with health insurance. It does this by mandating young and healthy individuals to participate in the same risk pools as older and sicker people. The benefits of the system flow to the latter group by paying for services the former does not need.

On the other hand, the price spikes are a surprise to many people who believed President Barack Obama when he said – often – that they could keep their doctors and insurance plans, if they wanted to, after ObamaCare was implemented.

Fiscal reality is also causing some to rethink their support for a law they didn’t think they would have to fund.

“I was laughing at [House Speaker John] Boehner,” Californian Tom Waschura told the San Jose Mercury-News, “until the mail came today.” Waschura’s insurance company had sent a letter informing him that his family’s insurance policy would rise by $10,000 a year under ObamaCare.

Waschura continued, “When you take $10,000 out of my family’s pocket each year, that’s otherwise disposable income or retirement savings that will not be going to our local economy.”

Then again, that’s debatable since that extra ten grand is going to help pay for the medical expenses of other people in Waschura’s expanded risk pool. Who is to say that someone in Waschura’s community won’t directly benefit from Waschura’s forced subsidy? Shouldn’t that make Waschura feel more like his money is going to a government-directed charity rather than picked from his pocket?

In the same article, another Golden State resident puts the matter even more simply. “Of course, I want people to have health care,” said Cindy Vinson. “I just didn’t realize I would be the one who was going to pay for it personally.”

As ObamaCare’s costs continue to escalate dramatically across the health insurance industry, millions of Americans will discover that this is precisely how wealth redistribution works.

Quiz Question   
What is the single deadliest disease epidemic to the U.S. population in history?
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Notable Quote   
 
"According to the left-of-center Tax Policy Center, Biden's tax plan will raise taxes on 75% of middle-class families next year and 95% of families over the long term. Biden's policies are already slowing the economy. In August, the U.S. added just 235,000 jobs, a far cry from estimates that 720,000 jobs would be created. The economy has over 600,000 fewer jobs than the Biden administration boasted…[more]
 
 
—Grover Norquist, President of Americans for Tax Reform
— Grover Norquist, President of Americans for Tax Reform
 
Liberty Poll   

Pres. Biden is seeking IRS authority to monitor every American financial transaction exceeding $600. Is there any legitimate government reason you can think of for such micro-monitoring of individual financial transactions?