Ryan’s newest scam involves eliminating tax breaks for employees who are enrolled in their employer’s group healthcare plans, and instead give a tax credit to buy health insurance on an individual basis. According to Ryan, his plan will give consumers the needed incentive to demand more value from their healthcare. He said,
“Giving patients and consumers control over health care resources would make all Americans less dependent on big business and big government for our health security; give us more control over the care we get; and force health care providers to compete for our business.”Ryan’s statement sounds suspiciously like his Medicare privatization scam, and if it reaches fruition, will result in 170 million Americans facing the same consequences as the elderly who will end up paying higher costs for less coverage.
If the plan is adopted, it could encourage employees to drop employer health plans and move to individual plans that are prohibitively expensive for less coverage. One of the benefits of group plans are that a larger pool of policy holders results in lower premiums and more coverage. Ryan claims insurance companies would be “forced” into providing better coverage for less money, but a report on Tuesday showed health insurance costs are climbing for companies and their employees, and family premiums are increasing at a pace triple that of last year. Mr. Ryan either does not understand how insurance works or he knows and does not care that individual policies are much higher-priced than group plans.
There is no reasonable explanation for why Ryan thinks that an individual plan is less costly than a group plan, or that individual consumers will be better equipped to force the insurance industry to give more value for policyholder’s dollars. If Americans know one thing about the insurance industry, it is that they are never going to be influenced by consumer complaints or demands for better value...
Paul Ryan’s plan will most likely fail because Americans are getting wise to the Republicans’ tactics of rewarding corporations and the insurance industry at the expense of every class except the wealthy. His plan would affect 170 million Americans who get their health insurance from their employers’ group plans whether in the private or public sector. The beneficiaries of Ryan’s largesse are big business who will eliminate health insurance benefits and the insurance industry that will get to charge whatever they please. Although Ryan will most likely embark on a propaganda campaign to tout his plan’s benefits, most Americans understand that their bargaining power will be diminished if they are forced to buy insurance on their own.
Read it all here.
Elsewhere, Democurmudgeon says: With Ryan we're closer than ever to health care bankruptcy-- all of us.