I think 6% of income is too high. I don’t think it should be based on income. It makes more sense to base it on age, just like younger drivers pay more for car insurance, it makes sense that older people pay a little more.
I can’t disagree more.
Premiums absolutely should be based on income and absolutely should not be based on age. I say that not just because I am in the 60+ age bracket and you likely are not. I say that because of my 25+ years in employee benefits. However, I do agree that there should be a penalty for delayed enrollment similar to what Medicare Part B imposes.
When you come right down to it, the whole health care debate boils down to two issues. How do you expand health care coverage and how do you pay for health care.
Expanding coverage is important because it spreads the risk among the sick and the healthy equally.
Make it straightforward and uncomplicated
A column in Tuesday’s New York Times raises an issue not raised by many who opine on the bailout of the auto industry – the relationship between health care financing and the bailout. David Leonhardt examines the much discussed wage disparity between the unionized autoworkers and their non-union counterparts employed by foreign manufactures in the US like Toyota and Nissan.
Ezra Klein in his blog picks up the same theme. Apparently the Republicans in the US Senate missed their helpful analysis – as did most of the talking heads on the news shows.
They make two relevant points. Most of the disparity between the wages is in legacy cost, and secondly, wages are not the significant cost driver in the cost of an automobile. They both agree that Detroit’s troubles are not related to costs, but to their inability to design and build cars that the American public wants.
Personally, I do not think the car makers deserve all of the criticism they received; a lot, just not all of it. Until a couple of months ago, our family had two American made vehicles in our driveway. Their combined mileage was almost 350,000. Our high priced foreign car cost more per year to repair than the other two combined.