Wisconsin To Provide Universal Healthcare

You’d think liberals around the nation would be happy about this program. You’d think we’d have been hearing about it all over the place. As it is, the Wall Street Journal (hardly a bastion of liberal sentiment) had to highlight the program in an op/ed. Wondering why?
Maybe it’s because the program highlights the stark reality of socialized medicine: Free health care is expensive:

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.

But hey, “free health care” right? I wonder, though, what the liberals in Wisconsin are going to do when all the workers leave for friendlier tax environments and an ocean of unemployed rent-seekers looking for free doctorin’ flow in?

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.

Tax the hell out of those who are successful and providing for themselves in order to provide free entitlements to those who won’t provide for themselves. Take from the productive, give to the unproductive.
Wonderful.
When this implodes in Wisconsin, the whole nation will be watching. And hopefully we’ll learn a lesson or two.

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  • http://www.bikebubba.blogspot.com/ Robert Perry

    For reference, Blue Cross with a good sized deductible is about $1200/year for a healthy adult in Minnesota. Yes, HMOs cost more, but the expectation is that those who want HMOs want more healthcare too.

    I hope this goes down in flames, as I must drive through Wisconsin often. It’s not beyond possibility that the funds needed for this boondoggle would be taken out of roads, police, and so on.

  • http://sayanythingblog.com/ likwidshoe

    From 1945 – 1966 the U.S. saw the greatest scientific and technological progress in world history, not to mention the highest standard of living thanks to FDR!

    Why are you giving the guy so much credit?

    Time to return to import tariffs and fixed exchange rates on currency and get America producing again, before it’s to late.

    Government penalties would help us how? What, exactly, do you want America to be producing?

  • http://www.valleydeals.com/cgi-bin/board2/YaBB.pl Kevin

    Anyone under 50 will leave Wisconsin in droves!

  • sayanything-4625

    $510 per month!! Over 6 grand a year. Does the cost of private health insurance come anywhere close to that cost?

    My company is based in Wisconsin and this would be less than they pay in insurance a month. Each year during open enrollement they tell us what the company contribution for our health care is and it is 975 per month for my family. I work off site in Alabama and it is much less for my family insurance. So for my company it would be a net gain. Personally, I don’t want the government to provide health care so I would not be in favor of this insurance.

  • http://politicaldarwinism.blogspot.com/ Frasco

    To avoid any misunderstanding of my earlier statement, it was not a proto-endorsement of the system. This is a pathetically stupid idea that, if passed, will haunt the residents of Wisconsin for years, even decades, to come.

    Bat One- I see nothing in your comments that indicate that making horrible decisions isn’t the prerogative of the people of Wisconsin. Am I missing something?

    To ensure that this is stated clearly I’ll also add this: a result of the Federalist approach MUST be that the states are NOT bailed out by the federal government. A state should be free to do any action so long as it is done by legal means and does not violate the constitution. It should also have to live with that decision.

    If Wisconsin votes socialists into power, they will receive socialist policies. And that is the way it should be. Folly is the best teacher

    Frankly, I’m glad that Massachusetts, Wisconsin and California are all experimenting with anti-market health care. Perhaps their failures will occur quickly enough that we may avoid the federally funded disaster that currently hovers just over the horizon.

  • Mickey

    Speaking as a Cheesehead from Wisconsin I can tell you this will never pass the legislature. Our governor is a typical dizzy liberal from Madison, a mystical place, twenty miles square, surrounded by reality. He knows this is his last term so he’s going to screw things up as much as possible for his replacement.

    Imagine the effect of such a silly policy. This state already is taxed higher than 45 to 47 other states. This would make us number one. YeeHaw. We could watch all the industry leave while all our new residents move in. Screw the fence on our national border. You will need a fence around Wisconsin.

  • docdave

    $510 per month!! Over 6 grand a year. Does the cost of private health insurance come anywhere close to that cost?

    With guaranteed health insurance, there could be a mass migration of free loaders and uninsurables into the Badger state and as Rob suggested an outmigration of the productive out of the state. I really can’t believe that this program will be other than disasterous.

  • http://www.voicesofreason.info/ Neil B.

    OK, your criticism has some valid points. But just remember that relative “cost” of a new program is defined by [new program cost] – [existing system cost], not from the cost by itself. IOW, if people already paid $500/month for equivalent health care/insurance, then the average cost is really $10/month, which is the increase. If they spent more before, it’s a savings, etc.

  • Neiman

    Frasco: If the people of Wisconsin allow this to happen, then they will have to pay the price in terms of taxes and a downturned economy, they elected these liberal bozos. You are right we have no right not to allow them to experiment but that implies we (nation) should not under any circumstances bail them out of this fails. Let em eat cake!

    I mean it! It is okay for states, communities and companies to take risks to do something better; but the American taxpayer should not have to pick up the bill for their mistakes – period! If those cheese eaters up there have a failed economy, people cannot get health care and there is widespread suffering, they made this decision they should have to live with it no matter the costs.

    I say, if this program fails, let em all move to North Dakota.

  • http://politicaldarwinism.blogspot.com/ Frasco

    Experiments like this are precisely why Federalism is undeniably the best system for the United States. Here in the US, when there is a controversial new idea, a state is able to try it out and see just how well it works. Other states are free to watch and learn.

    What is not healthy for the Republic is when the Federal government mandates something across the entire country.

  • docdave

    The Dakota’s are lookin better every day.

    Mickey, come to Texas. No state income tax and it’s warmer.

  • robert108

    No one here has pointed out that an individual paying $510/month for his or her own healthcare is fundamentally different from the state confiscating that amount from the earnings of the productive, running it through the usual govt bureaucracy, and then paying a system that is now unresponsive to market forces.
    The individual paying for his or her own care is much better off. That is the truth about big govt schemes.

  • Neiman

    Mickey: I hope you are right! I hope the people from your state deal with this moron.

    DocDave: I haven’t lived in Oregon for about 30 years, but either Washington or Oregon has no state income tax and the other no sales tax. So to live along the beautiful Columbia River on the side without income taxes and shopping in the state without sales tax is practically a tax free Shangri La!

  • http://ndgoon.blogspot.com/ goon

    The average person can’t not afford an addition 510.00 in taxes a month. It’s criminal to suggest that the voting public pay for this. It will be voted against and will not get approved…

  • http://icallbs.net/ Elisa

    The California legislature is trying to pass a similar law: SB 840. Like Wisconsin, all that is required to be eligible is to be a resident of California – and there is no requirement that one be a LEGAL resident, or even be here a full 12 months: “All California residents shall be eligible for the
    system. Residency shall be based upon physical presence in the state with the intent to reside.”

    The bill also creates a state-wide healthcare database – giving the government control over the medical records of all residents of CA.

    The bill creates a huge bureacracy and outlaws the provision of medical care outside the system – regardless of ability to pay. Certain cost-cutting measures are allowed when the state’s budget is tight (and when is it NOT?) such as “postponement of introduction of new benefits or benefit
    improvements” which practically guarantees that medical care won’t keep up with the state of the art, and “a temporary decrease in benefits.” Copayments and deductibles are allowed when needed to balance the budget.

    If this passes we may finally have to take our losses and leave the state.

  • Bat One

    Here in the US, when there is a controversial new idea, a state is able to try it out and see just how well it works. Other states are free to watch and learn.

    Frasco,

    In theory, that is exactly how it should work. However, by implementing a program such as this, the state of Wisconsin not only forces residents out of the private market and into government programs that are neither efficient nor suited to the needs of the individual (no more private insurance, no more HSA’s or self-insurance outside the purview of the state mandate), but the state would also be assuming a huge and quite likely unaffordable liability. And like Social Security, Medicare, Medicaid, and the other unfunded federal liabilities, the state will be forever burdened with the responsibility for the health care of all those initially enrolled.

    That is, unless the federal government comes along and bails out the state of Wisconsin, which is the likely result of all this, and quite probably the intent of the Democrats pushing this plan to begin with.

  • http://politicaldarwinism.blogspot.com/ Frasco

    Well Bat One, you might well be correct about the Federal government getting involved; quite unfortunate for all taxpayers, frankly.

    Even if this plays out as you expect, at least it’ll give free-marketers a domestic argument to cite in future debates.

    I, naturally, am willing to be more passive regarding this because I currently reside in Virginia, not Wisconsin. Thankfully, I recently fled from the sinking ship that is New England.

  • http://sayanythingblog.com/readers/author/Anna/ Anna

    Same here Rob, my portion is $600.00 and that isn’t adding in my dental. :O

  • Bat One

    Frasco,

    Philosophically, and constitutionally, we are in agreement. I’m just not as hopeful that the “experiments” on the state level won’t ultimately be underwritten and absorbed by the federal government when they fail… as they each will.

    Prudent individuals, those who are responsible about their own welfare and that of their families, and those small business owners who can, will move away, leaving more of those who have little or no “contribution” to make to paying for this. Taxes will have to be raised to offset the declines in tax revenues as more productive and responsible individuals leave.

    California before Reagan became governor, and NYC from John Lindsey through the Dinkens debacle were both in similar financial tailspins, caused in both cases by the generosity of Democrats with other peoples’ money.

  • http://sayanythingblog.com/ likwidshoe

    From that link Bat One posted –

    The Corzine administration has plans to rein in the state’s retiree health costs by making more retirees pay for part of their health premiums and by switching retirees into a network of doctors at negotiated fees.

    Lesson: socialized medical care gives us less choice.

    The imbalance between what is owed and what states can afford has grown so big that some officials in New Jersey, as in many other states, say they now view a national health care plan as the only realistic long-term solution.

    Lesson: government creates the problem and then offers itself up as the solution.

    No thank you liberals! I am not buying the bullshit you are selling. Go peddle your wares to the stupid people in Wisconsin and New Jersey. Stay the hell away from the rest of us. You guys are accidents waiting to happen. Liberalism is dangerous.

  • Fasteddie753

    I applaud the state legislature for taking the necessary steps in protecting the “General Welfare” clause of the U.S. Constitution. They have done what no other government body has done since FDR with the Hill-Burton Act or Healthcare Act of 1946. He had a healthcare system in this country until Nixon and the insurance companies wrecked it with the passage of the HMO Act of 1973. We are paying over $1000.00 per month for family healthcare, so the lousy $510.00 per month IS a DEAL! It’s is high time to get the insurance companies out of the healthcare business once and for all! Hill-Burton worked and so will this.

    FE

  • Bat One

    Frasco,

    This is exactly what I had n mind, sadly.

    It turns out that New Jersey will need about $58 billion, in today’s dollars, to provide all the care it has promised its current and future retirees. That’s nearly twice the state budget and nearly twice the amount of its outstanding debt.

    In addition, New Jersey’s towns and other local governments owe about $10 billion for health care for their own retirees…

    The portion of the $58 billion that they need to come up with each year will rise sharply because of soaring health costs and a burgeoning population of retirees, according to the New Jersey Treasury. The state will spend about $1.1 billion on this year’s care, and the figure is expected to double in five years.

    Meanwhile, the state’s revenues are largely static. That means that unless something changes, New Jersey will have less money each year to pay for vital services like colleges, hospitals and mass transit. Its popular program to preserve green space just fell victim to the need to devote huge amounts to the retirement plans and debt servicing.

    Word of the amount owed for retiree health care over the long term comes on the heels of revelations that the state’s pension fund is woefully short and needs contributions of about $2.2 billion a year to bring it back into balance.

    The NY Times tries to play this as a GOP debacle, stating that the shortfall was the result of a lack of state funding to provide for (of course) a tax cut. But the fact is that the state would have been even worse off without the tax cut, as both the state’s economy and state tax revenues were in severe decline due to it’s extremely high rate of taxation.

    Democrats must honestly believe that money grows on trees… and that the government owns the nursery.

  • robert108

    To quote: “the goal is giving everyone coverage by having everybody paying a share of the costs.”

    “From each according to his ability, to each according to his needs.” – Karl Marx

    Could it be any more obvious what the Dems want for this country?

  • http://history-nerd.blogspot.com/ Daniel

    why is this surprising? it’s very similar to what happened–to me, at least–throughout elementary and high school. whenever there was a group assignment to be done, the teachers put the slow learners and/or stupid people into groups with the quick learners and/or smart people. guess who ended up doing all the work?

  • docdave

    I’m glad that Massachusetts, Wisconsin and California are all experimenting with anti-market health care. Perhaps their failures will occur quickly enough that we may avoid the federally funded disaster that currently hovers just over the horizon

    . Unfortunately, I agree with Bat that the states will look to the Feds to bail them out.

    That is, unless the federal government comes along and bails out the state of Wisconsin, which is the likely result of all this, and quite probably the intent of the Democrats pushing this plan to begin with.

  • http://arclightzero.wordpress.com/ arclightzero

    Since I am a cheesehead and have been covering this topic since it first got voted in at the Senate (in a sneaky, late-night last minute session I might add), I will add a couple of important things….

    First off, the cost to the worker won’t be $510, the actual cost is supposed to be an additional payroll tax that takes another 4% of your social security wage while the business owner would pay another 10.5% off their social security payroll (per person, of course). THis is not a good thing, although it is better than the thought of trying to figure out how to pay $510 a month for “universal” health care.

    It’s an absolute travesty. For somebody like me, I pay $60 a month for health care through my employer. With my salary, the new plan would drive my monthly cost up to about $140 a month, more than doubling what I already pay, not to mention the significant jump in what my company would have to pay.

    What makes it worse is the fact that the democrats in the Senate who pushed this thing did so with utter arrogance and contempt for the working class. To quote: “the goal is giving everyone coverage by having everybody paying a share of the costs.”

    You are right though, the program is designed to provide to everybody, regardless of their employment status, which means that the area will be flooded by people seeking to take advantage of the handout. If they think they can support everybody on their estimated costs, they’re dead wrong, because they didn’t figure on a) people and businesses leaving for a better tax environment, and b) more people coming who don’t work who will be using the system. It’s all elementary math. If the providers shrink and the users grow, the cost goes up and with less people to distribute the cost amongst, the cost to those remaining will skyrocket.

    Luckily I think that the Republicans in the state assembly will make sure that it doesn’t pass. I have spoken with the assembly majority leader, and it did not make it in their version of the budget bill and they will block it from being added to the final bill.

    The whole thing was just for show. The Senate dems wanted to prove that they are more socialist than every other state, while all the while calling themselves progressive and working for the American people.

    Personally, I think that there is something bad in Madison’s water supply.

  • http://arclightzero.wordpress.com/ arclightzero

    Not to mention the fact that FDR helped to put this country into a tailspin by deciding that it was the federal government’s job to take care of people and provide entitlements to the “needy”.

    We should be working to back away from the mess that FDR got us in to, not embracing his actions and trying to add to things…

  • Mickey

    Neiman

    The Dakota’s are lookin better every day.

  • Fasteddie753

    From 1945 – 1966 the U.S. saw the greatest scientific and technological progress in world history, not to mention the highest standard of living thanks to FDR! Even after his untimely death, the U.S. benefited from his legacy and policies for years to come. Thanks to Neo-Liberal Free Traders, the productive capacity of the nation was dismantled. In 1958 we were the greatest lending nation on earth. Thanks to the “post-industrial” morons like Milton Friedman, George Schultz et. al., we have become to worlds largest debtor nation and importer to the last resort! Time to return to import tariffs and fixed exchange rates on currency and get America producing again, before it’s to late.

    FE

  • http://sayanythingblog.com robport

    I applaud the state legislature for taking the necessary steps in protecting the “General Welfare” clause of the U.S. Constitution.

    That clause is in the preamble, you jack ass. It isn’t law.

    And besides, the clause is “promote the general welfare,” not provide for it. Meaning policies that leave you free to be successful and take care of yourself, not policies that make me pay for doctor’s visits for rent-seeking layabouts like yourself.

  • http://sayanythingblog.com robport

    $510 per month!! Over 6 grand a year. Does the cost of private health insurance come anywhere close to that cost?

    Private insurance can cost that much. I’m paying $600/month right now for a family plan for myself, my wife and my daughter (that’s my cost, my employer kicks in $270/month I believe).

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