Universal Healthcare or Universal Suicide

Cheese Headcases Wisconsin reveals the cost of "universal" health care. Tuesday, July 24, 2007 12:01 a.m. EDT

When Louis Brandeis praised the 50 states as "laboratories of democracy," he didn't claim that every policy experiment would work. So we hope the eyes of America will turn to Wisconsin, and the effort by Madison Democrats to make that "progressive" state a Petri dish for government-run health care.

This exercise is especially instructive, because it reveals where the "single-payer," universal coverage folks end up. Democrats who run the Wisconsin Senate have dropped the Washington pretense of incremental health-care reform and moved directly to passing a plan to insure every resident under the age of 65 in the state. And, wow, is "free" health care expensive. The plan would cost an estimated $15.2 billion, or $3 billion more than the state currently collects in all income, sales and corporate income taxes. It represents an average of $510 a month in higher taxes for every Wisconsin worker.

Employees and businesses would pay for the plan by sharing the cost of a new 14.5% employment tax on wages. Wisconsin businesses would have to compete with out-of-state businesses and foreign rivals while shouldering a 29.8% combined federal-state payroll tax, nearly double the 15.3% payroll tax paid by non-Wisconsin firms for Social Security and Medicare combined.

This employment tax is on top of the $1 billion grab bag of other levies that Democratic Governor Jim Doyle proposed and the tax-happy Senate has also approved, including a $1.25 a pack increase in the cigarette tax, a 10% hike in the corporate tax, and new fees on cars, trucks, hospitals, real estate transactions, oil companies and dry cleaners. In all, the tax burden in the Badger State could rise to 20% of family income, which is slightly more than the average federal tax burden. "At least federal taxes pay for an Army and Navy," quips R.J. Pirlot of the Wisconsin Manufacturers and Commerce business lobby.

As if that's not enough, the health plan includes a tax escalator clause allowing an additional 1.5 percentage point payroll tax to finance higher outlays in the future. This could bring the payroll tax to 16%. One reason to expect costs to soar is that the state may become a mecca for the unemployed, uninsured and sick from all over North America. The legislation doesn't require that you have a job in Wisconsin to qualify, merely that you live in the state for at least 12 months. Cheesehead nation could expect to attract health-care free-riders while losing productive workers who leave for less-taxing climes.

Proponents use the familiar argument for national health care that this will save money (about $1.8 billion a year) through efficiency gains by eliminating the administrative costs of private insurance. And unions and some big businesses with rich union health plans are only too happy to dump these liabilities onto the government.
But those costs won't vanish; they'll merely shift to all taxpayers and businesses. Small employers that can't afford to provide insurance would see their employment costs rise by thousands of dollars per worker, while those that now provide a basic health insurance plan would have to pay $400 to $500 a year more per employee.

The plan is also openly hostile to market incentives that contain costs. Private companies are making modest progress in sweating out health-care inflation by making patients more cost-conscious through increased copayments, health savings accounts, and incentives for wellness. The Wisconsin program moves in the opposite direction: It reduces out-of-pocket copayments, bars money-saving HSA plans, and increases the number of mandated medical services covered under the plan.

So where will savings come from? Where they always do in any government plan: Rationing via price controls and, as costs rise, waiting periods and coverage restrictions. This is Michael Moore's medical dream state.

The last line of defense against this plan are the Republicans who run the Wisconsin House. So far they've been unified and they recently voted the Senate plan down. Democrats are now planning to take their ideas to the voters in legislative races next year, and that's a debate Wisconsinites should look forward to. At least Wisconsin Democrats are admitting how much it will cost Americans to pay for government-run health care. Would that Washington Democrats were as forthright.

Planning a Marriage and What I've Observed

Forget planning a "wedding." A wedding is but a mere kickoff to the more important marriage. I think Brad and I have had a good start at preparation for one of the most monstrous choices in our young years; but that hardly means we're perfect.

Here are some observations I've made in the last few months - just thoughts that may not pertain to everyone or every situation.

1. Young people are stupid. We attended A Weekend to Remember in April and were shocked with the number of teenagers who were present. They appeared oblivious to the simple instruction of paying attention to no one but your "spouse" while present and insisted on eating out with their friends. They squirmed when the teacher told them to discuss how they'll raise children, determine finances, and develop communication skills before marriage. We decided parents probably sent them as a means of intervention.

2. We're stupid - but we have awesome scores! Brad and I both know that the road of marriage will have it's bumps and consequential bruises and broken bones. Maybe it's the model of marriage that our parent's set up; but we have a positive outlook on the downward spirals that will undoubtedly ensue. We took an online survey/test for pre-marital counseling and our compatibility scores were outstanding! Our scores were so good, in fact, that they ranked us as "idealistic"....so apparently, because we know there will be hardship, but divorce is not an option we're idealistic about our marriage?? Backwards, but whatever.

3. Non-traditional or not; someone is going to make you crazy. Our wedding, by societal standards, will be anything but ordinary. It's inexpensive, fun, and I'm secretly hoping that someone will mess up their walk down the aisle - not in an embarrassing way, of course. But no matter how you look at it - someone or something is always going to urge you to insanity. I'm learning to pick my battles and address the issue whether I fight with swords or sticks. Half the insanity comes when you don't deal with "it." Whatever it may be.

4. Planning the wedding I "never knew I wanted" is actually quite fun.

5. Things are expensive. Don't let Aunt Ida or Papa Pete determine how you spend.

6. If you're going to do it halfway - don't do it at all. I've noticed that it's better to do a few things well than a lot of things poorly. Which is why we probably won't end up with any decorations... ;)

7. Moving things around for a new spouse to move in is a lot harder than I imagined. Last night I began moving my art and photography supplies into the spare closet to clear space for Brad's montage of button down dress shirts. I was actually sad about emptying my closet to make room for his stuff. I like the way I've had things set up... Too bad...

8. Brad will be top notch at reaching things on the shelves and unloading the car.

9. Take a flippin' honeymoon for crying out loud. I can't believe how many people don't and regret it! After all that planning you deserve a vacation!

10. Reply cards....reply cards....reply cards.... I will never misplace one again....

11. Planning a smaller wedding with the closest family and friends is by far the most exciting thing about our wedding. It will be a fabulous reunion of sorts!

That is all I have for the moment. I'm sure there will be more to follow.