Those co-ops would still be dependent on government funds, leading to the same problems that have been previously noted with the public option.
Not only that, but in order to pay the $900 billion price tag, insurance companies that provide plans being call "Cadillac" plans, high end insurance plans, those folks would foot the majority of the bill for no other reason than they can afford one of those "Cadillac" plans.
A proposed health-care compromise by the powerful chairman of the Senate Finance Committee lacks a government-run insurance option favored by Democrats and would tax the most expensive health insurance plans, a source close to the discussions told CNN Monday.
Sound like just another way for the Democrats to tax the rich?
That is because it is.
The bill would be paid for, in part, by a new tax on health insurance companies that provide high-end "Cadillac" insurance plans, the source added.
Supporters of such a tax -- initially proposed by Massachusetts Sen. John Kerry and other Democrats several weeks ago -- say will it help curb the cost of health care by discouraging employers from offering such plans. They also argue that consumers, in turn, will be discouraged from overusing the health care system.
Critics claim the new tax will cause insurance companies to raise rates on all of their customers, even those without more expensive plans.
Readers can decide for themselves if insurance companies would simply pay out those additional tax dollars from their own pocket without raising rates for all their customers.
The plans become unaffordable, then people have to join these so called co-ops, which are government funded.
In the meantime, the politicians are back from vacation and not only are their problems the same, they are worse because now they have spent August hearing from angry constituents that do not want any type of government funded health plans.
They are in almost the exact position they were in when they left the Capitol in late July. Conservatives are still leery of supporting a government-funded, or public, insurance option. Freshman lawmakers from suburban districts remain fearful of increasing taxes for their wealthy constituents to pay for the new measure and await alternatives from moderate Senate Democrats. And progressives, who are demanding the most far-reaching reform since the Great Depression, are still threatening to bring down the legislation if it does not contain a robust version of the public option.
Oh, by the way, I still haven't seen any word of tort reform in any of these plans being floated.
Good news though for those of us that do not want government sticking their noses into our healthcare options.... 23 Democrats have come back from vacation saying they will not vote for Obamacare.
Their reasons:
...it costs too much, imposes a new tax and fines businesses that don’t provide insurance to employees. Some fear that the bill would subsidize abortion...
Blue Dog Democrats understand political suicide when they see it and the 1,000+ page, convoluted, tax the rich and take over the healthcare industry plans being floated, is, indeed, political suicide.
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