When explaining McCain's "Health" Plan, remember

[FrenchieCat]

The important thing to explain is this:

If a worker has health benefits paid on their behalf now by their employer, these are called PRE-Tax benefits. These benefits, under the McCain plan become part of the worker's wages, and the worker then has to pay payroll taxes as well as income taxes on the benefit amount. In essence, the worker's take home net pay would be reduced by those taxes.

BUT WHAT IS MOST IMPORTANT is that the EMPLOYER will have to match those payroll taxes as they do with regular wages. In otherwords, the employer's payroll cost will go up. When that cost is multiplied by the number of employees, and considering the rising cost of health care, an employer may opt out of providing health care (and they could, since McCain does not mandate insurance) due to the cost being prohibitive. That is why it is estimated that by the time it is all done, 20 million employees may end up no longer being covered by their employers.

If the employer opts out, as a single person, a worker would get a S2,500 tax credit towards health insurance. But the worker never get the actual money; it goes to the selected insurance company instead. If the worker decides to go without coverage, he/she does not get the credit, period.

A family of 4 would get a $5,000 tax credit. Coverage for a family of 4 normally runs about $12,000 per year, excluding Co-Pay. The worker would then have to pay the difference to the insurance company. So the worker would pay out of their pocket the $7,000 difference.

There's other bad aspect to this McCain "Health" plan that are also terrifying!

[AirmensMom]

1. Thank you.

I really wish people would listen to this. And once we go down that road, I don't think we'll ever see employer sponsored health insurance again. This is really scary.

[FrenchieCat]

2. It is very frightening.

It really makes matters worse. And then of course, he's talking about cutting benefits on Social Security and Medicare.

:scared:

[iceman66]

13. That's what McCain is hoping for.

He wants everyone to but their own health insurance on an unregulated open market. Can't afford it? Too bad.

Interesting that McCain is one of the relatively few people who CAN afford to buy his own insurance, but elects to accept coverage provided by the federal government.

[AirmensMom]

3. This needs a kick.

:kick:

[MissHoneychurch]

4. A sure way to kill the health care

and make it even less affordable for the people. Asshole.

[phrigndumass]

5. K&R ... Having to match taxes will spell doom for a lot of non-profits

Non-profits have already been hit very hard by health benefits that increase 10% every year.

Good point, Frenchie! :hi:

[tandot]

6. K & R

[Born_A_Truman]

7. His plan will destroy health care

[REACTIVATED IN CT]

8. I wish the Obama campaign would run ads that spell this out

My employer pays over $5000 a year for single coverage that is good coverage but not a "cadillac" plan. How the hell am I supposed to buy that for $2500 ? They buy it at a group rate and there are economies of scale in billing and collecting premiums for 500-600 people.

I'm going to send a LLTE of my local paper this weekend on this. Voters need to know the details on this lousy plan - another McCain gimmick.

[FrenchieCat]

9. Biden explained it perfectly a few minutes ago in his speech in MO!

Good idea to send Letters to Newspapers.

The media needs to be explaining this much better!

[REACTIVATED IN CT]

11. Good going Joe !

They really need to spell this out for people. It sounds wonderful if you have no clue how much health insurance costs. And most people don't - until they lose their jobs.

[Princess Turandot]

10. One thing to add..

he is also talking about reducing Medicare spending, as well as Medicaid, in order to pay for the $2,500 - $5,000 tax credit. So, if your mom and dad are on Medicare, their access to healthcare may well be reduced to help pay for a tax credit to you, a tax credit which will not be large enough for you to afford to buy health insurance.

The elimination of health insurance costs as an expense for the purpose of calculating corporate taxes is a key point in his plan. His goal is to eliminate business paid health insurance all together and that's one way to do it.

[Overseas]

12. K&R to add to the stack of Republican hypocrisy-- keep tax cut at the top, add taxes for the poor

Or is it just cruel consistency with the RNC creed, Country Club First.