Obama wants to include those who lack insurance but make too much to qualify for Medicaid or SCHIP in a new government dictated health insurance plan.  He claims this program would have “affordable premiums, co-pays and deductibles,” and subsidies for those who need them.  Parents’ insurers would be required to cover children to the age of 25. 

He proposes a new “non-insurance tax” (unspecified flat percentage of company payroll) which creates a “moral hazard” by incentivizing companies to drop their coverage and accept the tax.  The only way to remove this hazard is to make the new tax prohibitively high, which would drive more business out of the U.S. as the business environment becomes uncompetitive.

Obama’s plan contains five methods for “reining in medical costs” but none produce enough revenue to pay for the program. 

In 2000 Obama gave a speech advocating price-controls for prescription drugs.  (Remember the results of government price-controls during the 70s?)

In his book, Obama worries about the creation of tax-exempt Health Savings Accounts “What if you work for an employer who doesn’t offer a health-care plan?”  HSAs are personal and portable and allow you to save money before taxes.  How is this program detrimental to those with (or without) insurance?