I’ve never wanted to get political on my blog, but I received an email that so incensed me I felt I had to address the topic. The email started like this:
Did you know.... If you're a conservative and belong to the American Association of Retired Persons (AARP), .you're actually funding Barack Obama's radical agenda to change America into an all-powerful Socialist State.
I am so fed up with the Right screaming about the “socialist agenda” of President Obama. They have become as rigid as some Muslims in their way of thinking, and in their approach to issues and their inability to have any dialog that stretches their narrow views. This President, when he just began his term, was immediately targeted by the Right for extinction. Why, because he is “half” black? What are they afraid of, losing power? Is that what this game is all about? Never before do I remember hearing so much disrespectful drivel towards a president coming out of the mouths of Americans, where their slander was not immediately denounced as un-American. And then it was certainly not supported by the mainstream media as it is now by some channels.
Is his agenda “socialist” because he is trying to ensure that all Americans have access to healthcare? I am sure this is not the “only” reason, but surely it is one of the drivers. As I’ve mentioned before in my blog, I live in fear that I will lose my health insurance which will surely speed my death. But the reality is that this is an issue that confronts so many people on so many socio-economic levels – and it will only get worse.
When I see all these people protesting against healthcare reform, I have to ask myself, where do they get their insurance? Are they current retirees on Medicare, are they receiving wonderful retiree health benefits as veterans or as former government workers, or are they lucky to work for a major corporation, school system or union that provides their medical? It is interesting to note that we, as taxpayers, subsidize much of these costs, whether directly through our taxes or indirectly in the cost of services.
The percentage of Americans with Medicaid, Medicare, or military/veterans coverage increased to an average of 24.6% last year, from 23.3% in the year prior. The percentage with employer-based healthcare dropped to an average of 46.8% in 2009, from 49.2% in 2008. These numbers are surely lower now.
Dennis Cauchon of USA Today and Stephane Fitch of Forbes recently wrote that “State and local governments have set aside virtually no money to pay $1 trillion or more in medical benefits for retired civil servants… With bills coming due as Baby Boomers start to retire, states, cities, school districts and other governments may be forced to raise taxes, cut benefits or both.” They further added "that the task of cutting benefits for government employees is especially difficult because state and local politicians are generally beholden to the government employee unions.” Let’s not forget it’s all about getting re-elected – so don’t expect to see any movement to make any changes here.
Cauchon also spotlights the big picture problem: “These medical costs are part of a larger burden taxpayers face in providing health care for an aging population. The federal government has a $1.2 trillion unfunded obligation to pay medical costs for retired.”
For those that currently are depending on their corporations to provide retiree healthcare benefits (especially for pre-65 year old retirees), the future may hold quite a shock. A Watson Wyatt study indicated that “The benefits provided to future retirees will be significantly less generous than those current retirees receive today, as employers are cutting back, capping or completely eliminating their retiree health benefits programs. They further state that the net result of public policy and skyrocketing medical costs has been to render retiree health benefits economically irrational for many employers. Many employers have already reduced or eliminated retiree health benefits, and the trend will only accelerate as health care costs climb. The burden on retirees to pay for their own health care is increasing dramatically, and far too few employees are prepared for the magnitude of the changes that will befall them.”
One advantage for corporate retirees is that they have “access” to group benefits which tends to limit the increase in premiums. But what about all those workers who do not have retiree benefits and retire prior to age 65 - or the self-employed - or those who work for small employers that do not provide healthcare benefits (or do so at a significant cost to the employee).
When people lose their coverage and get over the shock of the cost of COBRA benefits which expire after 18 months, they fall into the “individual” policy category. Costs for these benefits can be staggering. When Thierry’s COBRA benefits ended a few years ago and he tried to switch to an individual plan, the cost went from $395 to $675 per month. Six months later it went up to $845 per month. Eight months later it went to $958, and two months after that he received a notice that the cost was going to $1,346! AND THIS was for an HMO – not even a top of the line plan. Do the math; insurance would have become unaffordable after a few years!
No system is perfect, but we have to start somewhere. The cost of insuring the uninsured is significant, but the cost of doing nothing is much greater. Sitting with your arms crossed in front of you and spouting conservative rhetoric is not going to get us moving forward. It might be said that President Obama is an idealist – aren’t there worse things? Perhaps if this country instituted term limits for members of congress, it would help remove the fear of re-election which is keeping this country at a standstill. I was grateful that this President has tried to improve our country’s image abroad after the damage that was done during the last administration; now I live in fear that this subversive Right may turn us into another third world country, catering to a ranting minority who thrives on conspiracy theories and fear mongering.
As I write this it is gloomy outside, with the wind driving the heavy rain against our windows. Notwithstanding my agitation and this gloom hovering, I feel pretty good and I am going to party tonight – so on average – it will end up being a good day.