Age of Responsibility
Research for Online Investors

by John Dalt

9/17/09

Senator Max Baucus (D- MT) released his health care bill yesterday.  Everyone seems upset.  The bill does not include tort reform or interstate competition.  It throws more unfunded mandates on states for Medicaid patients, and “health insurance co-ops” that tap money from the government.

These co-ops are a wolf in sheep’s clothing.  Change the name, call it what you want, they will be funded by the government and create unfair competition with private insurance plans.  Business cannot compete with a plan that has unlimited resources from a government that can print its own money.  This leads us farther down the socialist road to a single payer system that runs at a deficit every year.

The reaction of most politicians to any problem is to do something.  What may be needed is to quit doing anything.  I have the hospital bill dad paid when I was born.  Delivery $6.58, hospital room $7.00 per day, medical supplies $1.86, etc…total bill for a bouncing baby boy $35.63  This was from a time when my dad was “responsible” for his family.  Call it the “Age of Responsibility.”

We certainly wouldn’t want health care as it existed in the early 1950’s, we should expect to pay higher costs for breakthrough technology.  Is it fair to think that all the government regulations, insurance coverage, paperwork, and lack of personal responsibility have led to the biggest increases in our health insurance costs?  I think so.  Don’t you think costs would be less if:

1. There was no “free” health care.
2. Patients had to pay part of every health expense.
3. The first money spent was the patients.

Part of the funding for Baucus’ plan taxes “Cadillac” health plans.  Any individual plan with premiums over $8,000 annually or family plan with premiums over $21,000 annually would be subject to a 35% tax levied and paid by the insurance company. So much for Oh! Bama not raising taxes on anyone making under $250,000

Who has “Cadillac Plans?”  You would think executives, but you would be wrong.  Mostly union members that take an attitude that they are owed something.  That is ridiculous.  These kinds of plans isolate people from any concern about their health costs, developing an attitude of entitlement to health care at no cost.  My Blue Cross family plan costs less than $10,000 per year.  We pay a $20 co-pay for doctor appointments.  We have an annual deductable we pay if we have expensive needs.

Our insurance costs would be even less if all the “world improvers” would quit lobbying the state insurance departments to increase coverage for every conceivable “illness.”  Every health insurance policy sold in our state must cover mental health treatments, drug dependency rehab, and penile prosthesis.  I have no need for these services, but am required to pay premiums to provide these services to others in our state.

The federal government requires that all health insurance sold in the U.S. cover breast reconstruction in case of a mastectomy, not only on the affected breast, but also on the other to maintain “symmetrical appearance.”  Thank you Uncle Sugar.

What would happen if the government dropped all regulations concerning health care, and people had to be responsible for themselves?  I think it would scare most to death.  Much of our population has become addicted to an attitude of “somebody should take care of me.”  An educated population would seek out the lowest cost care, and buy affordable “insurance” for uncommon, rare expenses.

Our family dog is dependent on me for health care, with her big eyes.  Nevertheless, Mother Nature and fate are cruel teachers.  Sorry Trixie, we don’t carry doggie insurance, and vets are not required to treat you if I cannot pay.  I will pay, but there is a limit.

When it is my time, I hope my sweet wife will pay.  But, there is a limit.  Ashes to ashes, dust to dust.

Have we lost the spirit of responsibility?  Has our country become so debased that most of our citizens are akin to my dog Trixie?  Looking to Uncle Sugar for food and care.  Gosh, I hope not.  The difficulty is the truth.  There are limits, Mother Nature and fate are cruel teachers.

Housing starts for August showed a 1.5% increase while initial jobless claims showed improvement with 545,000 filing for unemployment.  This was less than last week and below analyst expectations.  Fannie Mae announced 9% of all mortgages taken out in 2006-2007 are in default.

In the mailbag:
“Why doesn’t one bring up that IT was Cuomo who fined the banks who didn’t cross the red line when he was HUD Secretary under Clinton”---Subscriber C.I.

Our economy and citizen’s scream for less, not more regulation and laws.  The unintended consequence of “loose” money was easily foreseeable, to anyone that could see.  Congress creates problems, then rushes to fix them with more problems.---John Dalt

Patriots gathered in Washington last Weekend.

“Thank you for the information (on Bank of America)...When a homeowner applies for a rate and term refinance, BAC lowers your credit limit on any credit cards which lowers your credit score…”---subscriber B.W.

Great Quote:
"I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them." ---Thomas Jefferson

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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