Please bend over and receive your health insurance

Dear Washington,

You got us this time with the health insurance.  As your advisor said (paraphrased) – Americans are so dumb that they won’t realize what we did until it is too late.   Yes, it is too late.  The changes in health care are so deep that I doubt anyone can turn it back.  You took a problem that some people had and now dumped a giant problem on who else but the middle class again.  You see, the rich won’t be haunted by this.  The poor may or may not be helped.  The middle class – we were struggling before but now we are defeated.  Let me explain what we are all slowly finding out.

I met with my insurance agent to renew my very small group policy for this year.  Another 18% increase with no good options.  If I close the group policy and spin everyone on their own the rates are actually a little cheaper.  Yay!!!!!  But let’s look a little further:

Current situation (I will use some rounded numbers for a general idea)

$5,000 a year for health insurance – pre-tax split between employer and employee.

New plan: Everyone buys their own insurance and get a raise from employer to compensate for the difference which will be taxable.

Salary goes up $5,000.

FICA/Medicare tax goes up $765 (15.3%) split between employer and employee.

Fed Tax goes up (let’s guess $300) paid by the employee.

State Tax goes up (every state is different – let’s estimate 2%) $100

Local Tax goes up (let’s say 1%) $50

Total tax increase of at least $1,215 a year split between employer and employee – Not a bad deal for the government.  Again, not a problem for the rich or the poor, just the middle class.

For the employer: they get an increase in workman’s comp and liability insurance but they will probably save on some bookkeeping and admin expense.

So who is the winner here?  I already had insurance that I liked.  Now I need to find a new policy and I get the privilege of paying $1,200 more in tax.

What a deal!!!!!!!!!!

And you wonder why the people don’t trust you?

Signed:

Disgruntled Citizen

manure

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About Brian Fulmer

Brian is the owner of Crossroads Property Management Inc. (www.crossroadsproperty.com) He writes six blogs and has written two books. He also works with various missions around the world. His first love is Guatemala.
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