Health Deform by the Numbers

We've all been hearing a lot from Washington about their movement to reform (take over) our health care system, and I'm sure that you like I have heard enough propaganda from the Obama administration to either get you chanting "Yes We Can!" (if you have drank the kool-aid) or permanently turn off your television set (if you haven't drank the kool-aid).  I decided on Chris's Musings to put the claims to Obama's propaganda to the test, and see if the numbers he's proclaiming from Washington really add up.  

1.) Now, he's backtracked from this on Tuesday, but this whole thing was originally about the 46 million uninsured Americans suffering under the present system that we, Canadians, and most Europeans that need timely health care enjoy.  The estimates we are hearing say that this "reform" is going to cost upwards and over $1 Trillion to deploy.  But, is that $1 Trillion just to solve the problem for the uninsured?  What would we spend if we actually just covered the uninsured in this country?  

Assuming that a basic Blue Cross/Blue Shield HMO plan costs around $300/month on average, simply buying 46 million Americans a private HMO plan would cost the government $166 billion, instead of $1 Trillion.  So by simply subsidizing a private plan, they can spend 17% of the taxpayers' money they are intending or $834 billion less that can either not be taxed or (if they want to tax) go into other projects.  Seems that it would make sense to go out and subsidize some plans, huh?

2.) Obama claims that he's going to get all of this money from taxing only the top wage earners making over $250k/year.  This is a campaign promise we've heard en-nauseum in 2008.  But, does it add up?

Let's assume conservatively that there are 100 million people in the workforce, give or take.  Let's also assume that 5% of these folks make over $250,000 per year (may be less, but let's give Obama and the inflation created by the stimulus some credit).  With the current unemployment rate of about 10%, the average tax bill for each employed wage earner making $250k per year to cover the spending for the health care reform ALONE would be about $222,000.  That's almost their entire paycheck!  Well, they would get to keep $28,000 of their own money, which would that make them poor?  We'll have to ask Obama.  Chances are, truth be told, whenever we forget that campaign promise those of us that make less than $250k (which includes me) will start picking up part of this enormous tab.  

Obviously, some of these numbers don't add up, but of course the President was a community organizer in his past life and not a businessman, so perhaps he's not thinking like one.  But some of us that pay taxes and see the doctor every now and then do, so we should make our voices be heard.  

Think about this, if a taxpayer funded government option exists that competes with private health insurance companies that have to make a profit for you and I their shareholders, can that private health insurance company compete with an entity that does not have to make a profit and can just raise taxes whenever it pleases?  If a government option becomes an option, then it will logically soon become the only option, which is no option at all.  

Think about that.  Is this what America wants?