I don't know. De-coupling health care from employers is certainly one way to eliminate health care job-lock. William McKenzie at the Dallas Morning News describes job-lock as follows :
Today's "job-lock" phenomenon forces many workers, especially middle-aged ones with families, to stay in a job because that's the only way they can get health coverage. They may be bored to tears and want out, but they aren't about to leave and use their talents more productively elsewhere – not with health costs being what they are.
The key point for our economy is that last sentence:
They may be bored to tears and want out, but they aren't about to leave and use their talents more productively elsewhere – not with health costs being what they are.
A fascinating study would be calculating the costs to our economy from productivity lost from health-insurance induced job-lock.
How much more productive would an employee be if they weren't locked in job, bored to tears?
What percentage of our employees are locked in jobs, bored to tears, solely for the health-insurance benefit.
How many jobs aren't created by small business because they can't offer health-insurance benefit for the talent needed to drive their company to the next stage?
What innovations remain undiscovered because those that would discover are locked into jobs where they're bored to tears?
Mr. McKenzie sees McCain's plan as de-coupling the benefit from employers. That would empower the employees to own this benefit, much like they own their cars to drive to work. Make the benefit affordable, like a car (or car insurance), and then it won't hamper their decisions on where to work.
Mr. McCain would set them free. He would give all individuals the means to buy insurance on their own.
Families would receive a $5,000 tax credit to buy insurance. (Singles would get a $2,500 credit.) Everyone would qualify for the credit, although critics suggest Mr. McCain's $5,000 credit wouldn't help them meet today's average family premium. Fair enough. Hike the credit.
By giving everyone the chance to buy their own policy, Mr. McCain would put Americans in charge of their health insurance. Their plan would be their property right, and they could shop from state to state to find the best deal, just as they do to buy auto insurance.
At first glance, I like it. Make health insurance affordable, for all, and then it's a non-issue for health care, child-development, senior-care and employment. That levels the playing-field for startups, small-business, innovators competing against well-funded but stagnant corporate giants. Unleash that pent-up productivity and innovation in so many of our companies. Start a wave of job-creation.
And the means to do that is removing the pre-tax nature of current employer-sponsored health-insurance and health-care benefits.
Mr. McCain would take away those advantages and give every American the same tax credit to buy insurance. All workers, from Warren Buffett down to the small businessman in Muleshoe, Texas, finally would be on the same playing field.
A little hyperbolic, perhaps (But who'm I to point the finger on that issue?). Warren in Omaha and Small biz guy in Muleshoe, TX will never be on the same playing field.
But I catch his drift.
To do that, he'd have to tax that benefit.
But at what rate? Would they tax the benefit based on unpaid premiums from participating in a group plan or the same plan but with premiums paid as an individual, outside the group plan? Big difference. Not an insurmountable hurdle, but one to consider.
And while the $5000, per family, (or more) tax credit is an excellent start it's not helpful to those whose incomes can't afford health insurance or health care regardless of the credit. It's just money: The $5000 tax credit is a source of lost revenues for the Federal budget. Paying for, subsidizing health-care/health-insurance benefits, for low-income families is a source of higher costs for the Federal budget. It has the same impact on the deficit. The difference comes down to ideology and compassion.
The article tweaks my interest in McCain's health care plans. God is in the details, like grains of sand. I need to look closer at the details of McCain's health care plans.
At the very least, it's stirring the conversation and this article is one of the first to discuss health care plans with the issue of job-lock.
Recent Comments