Arch City Chronicle

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SOTU Reactions?

Text of the speech is available here.
Any reactions to President Bush's State of the Union address? What about the Democratic response by freshman Senator Jim Webb?

Any guess as to how many people watched Veronica Mars on Channel 11 instead?

One area I was surprised to find little meat was health care.

To counter the escalating costs and difficulties related to modern health insurance, the President proposes monkeying with taxes. The White House released a rather murky explanation of the proposal on Monday. In essence, those who receive health insurance as a benefit from their employer will find it taxed. Others will receive a subsidy in the form of a tax deduction.

The tax deductions may provide savings for some, but may also channel people towards the high deductible, low-premium policies that provide little beyond "disaster" policies.

Those whose low incomes push them in the direction of these policies often don't have the cash to cover co-pays. Others who do have the income may merely take the deduction and pocket the difference.

It's not the disaster you have to worry about, its the nickel-and-dime things that undercut the foundation of good heath. They can lead to long-term problems that quickly outstrip most individuals coverage.

The proposal offers a national variation on the Romney and Schwarzenegger plans which subsidizes private health insurance for low-income state residents. However, instead of spreading the costs to doctors, health insurers and hospitals, individuals who get health insurance from their employer as a benefit will find a new tax.

Given that approximately 46 million people are uninsured in the U.S. and millions more go without at some point due to changes in their lives, a more substantial plan might be in the works.

Posted by Matthew on Tue., Jan 23, 2007 at 9:53 PM | News Stew (487)
Comments

Bush is pathetic. All of his talk about a troop surge is just "stay the course" in new packaging. He, or at least his advisors, have to know that doing the same thing for the tenth time isn't going to change anything, but they're so concerned with his legacy they're willing to sacrifice even more lives on a lost cause. As long as it's the next president rather than Bush who finally gets our troops out of there, the neocons can say, "the plan would have worked, if we had just stayed there a bit longer."

Posted by Adam on Wed., Jan 24, 2007 at 12:16 AM

The speech was the same old. W always talks like a democrat to sound good in all of his SOTU's, but won't follow through with the funding for all of the programs he proposed. What was interesting is that W went out of his way to not shake Roy Blunt's hand after the speech.

Posted by newdems on Wed., Jan 24, 2007 at 12:26 AM

Matthew, aside from the problem on the individual level, Bush's tax deduction will hurt on a macro level. It will drive the younger and healthier to buy into plans like HSAs, which will skew the risk pool in conventional health insurance towards the older and sicker. Insurers will raise rates, and employers will pay more and ask their employees to pay more. In turn, more people will opt out of their employers' plan. Meanwhile, when the young and healthy get older and develop health problems, those HSAs won't look so good.

Posted by Clark on Wed., Jan 24, 2007 at 6:47 AM

http://flickr.com/photos/bill_streeter/367591572/

Posted by Brian Marston on Wed., Jan 24, 2007 at 9:39 AM
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