Health Wars (10/12/09)

Like the Klingon Defense Force swooping straight out of the sun to smash through the Dominion lines and rescue Starfleet, so the health insurance industry has belatedly joined the fight for its, and the American people's, health care lives:

After months of collaboration on President Obama’s attempt to overhaul the nation’s health-care system, the insurance industry plans to strike out against the effort on Monday with a report warning that the typical family premium in 2019 could cost $4,000 more than projected.

The critique, coming one day before a critical Senate committee vote on the legislation, sparked a sharp response from the Obama administration. It also signaled an end to the fragile detente between two central players in this year’s health-care reform drama.

Industry officials said they intend to circulate the report prepared by PricewaterhouseCoopers on Capitol Hill and promote it in new advertisements. That could complicate Democratic hopes for action on the legislation this week.

Gosh, ya think?  And do you think the White House isn't also acutely aware of it?:

“Those guys specialize in tax shelters,” said Nancy-Ann DeParle, director of the White House Office of Health Reform. “Clearly this is not their area of expertise.”

Possibly the most singularly incompetent administration in the history of the American Republic lampooning the health insurance industry as knowing nothing about premiums and an international public accounting firm as knowing nothing about accounting.  Yup, looks like THAT love affair is over.

Republicans wasted no time in passing around this fresh ammunition:

And guess what happens at the convergence of skyrocking premiums and the Baucus "Cadillac plan" excise tax?  Thaaaaaat's right, "We're ALL Cadillacs now!":

PwC also examined the impact of the excise tax on the mandated plans expected to be offered under the state health insurance exchanges detailed in the Senate Finance Committee Bill.17 We estimate that in many metropolitan areas, which tend to have higher than average medical costs, the lowest option plan (Bronze Plan) would be considered a “Cadillac plan” as early as 2016. By 2016 at least one of the mandated plans will be considered a “Cadillac plan” and be subject to the 40% excise tax in 17 of 50 states. By 2019 at least one of the mandated plans will be considered a “Cadillac plan” and be subject to the 40% excise tax in 24 of 50 states.

That's the mother of all bracket creeps, my friends.  And you can't tell me THAT isn't by design, either.  Think that might add to Blue Dog heebie-jeebies this week?

Meanwhile, back where BarryCare is already the law, rationing and death panels are now immiment.  Where will the guy who's prescribed a couple of Tylenol in lieu of a possibly life-saving MRI going to go once fleeing the state is no longer a practical option?