An analysis of the McCain health plan...
Sep. 16th, 2008 03:26 pmSenator McCain's health plan has three central features: withdrawing the current tax exclusion of employer payments for employer-sponsored coverage (in other words, taxing premiums paid by employers), introducing a refundable individual health insurance tax credit, and deregulating nongroup insurance by permitting the purchase of policies across state lines.Or, to put it in more personal terms: John McCain wants my wife to die in agony....
Eliminating the tax exclusion would greatly reduce the number of people who obtain health insurance through their employers. This decline would be driven by three factors: the effective price of employer-sponsored coverage would increase, the nondiscrimination rules would no longer apply, and low-risk employees would have less incentive to remain in employer-sponsored groups.
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For our analysis, we took a middle-range estimate from these studies and assumed that the elimination of the income tax preference for employer-sponsored insurance would cause twenty million Americans to lose such coverage. We note, however, that the effect could be much larger.
Senator McCain, do you remember that promise you made to follow Osama bin Laden to the gates of Hell? Just to make sure, why don’t you carry him in?
