Health Care: At What Price? » The Foundry

Health Care: At What Price? » The Foundry: "Food or health care? For many of the poorest working families, that may no longer be an option should Senator Max Baucus’ health care bill become law. Through an individual mandate enforced by tax punishments, all adult Americans will be required either to purchase a health care plan or pay a fine. While only a nuisance for more affluent families, this has the potential to injure low-wage workers by decreasing real wages, increasing layoffs and reducing job opportunities. Should the poorest American workers be responsible to fund health care form?

Baucus’ plan would require all Americans between 133% and 400% of the Federal Poverty Level to pay a sliding percentage of their income for health care, increasing as the worker earns more. For an individual earning $19,915 annually, they would be required to spend as much as $1,145 on health insurance premiums, the rest to be covered by their employer. Based on the Bureau of Labor Statistics Consumer Expenditure Survey, an individual in this salary range spends roughly $268 per month on food. That comes to over four months of food, spent instead on mandatory health insurance.

Of course, this same individual could opt out of health insurance, but they would be responsible for a tax of $750 for a service that they do not receive. These numbers are mimicked even for a family of four at 300% of the Federal Poverty Level earning almost $70,000, which could be responsible for an $8,337 mandatory health plan. With BLS data, this sum could feed this family for almost a year, but should this family opt out they could be on the hook for a $3,800 fee to remain uninsured. Never before have Americans been obligated to pay so much for nothing."