MIT economist Jonathan Gruber examined recent expansions of government insurance programs for children and found that “a natural reaction for workers may be to drop coverage of eligible dependents only, while maintaining coverage for themselves.” Indeed, under the proposed expansion, SCHIP coverage would be available to income groups where 89% or more of children are already enrolled in private health plans. The Congressional Budget Office found that the Senate’s SCHIP bill would move more than 2 million children with private coverage to the government’s rolls.
Of course, if the conservative alternative is simply a little less socialism (the counteroffer from Senate Republican leaders is hardly inspiring: bar adults from SCHIP and limit coverage to children in families below 200% of poverty), the march toward HillaryCare will continue.
Thankfully, a hardy band of conservative senators have an alternative. Spearheaded by Sens. Richard Burr (R-N.C.), Mel Martinez (R-Fla.) and Tom Coburn (R-Okla.), they propose overhauling the way we finance health care. They would jettison the current entitlement-style tax provision, which subsidizes even the most outrageously expansive health plans, and replace it with a universal health-care tax credit, capped at $2,000 for individuals and $5,000 for families. They also want states to dismantle regulatory obstacles and create competitive marketplaces where individuals could buy the health insurance plan that best suits their needs, thereby lowering the cost of coverage.
According to the Joint Tax Committee, this ambitious approach not only is budget neutral, but it would deliver private coverage to 24 million currently uninsured Americans -- six times the level achieved in the latest installment of HillaryCare.
Kudos to DeMint and his allies. Conservative lawmakers can’t beat something with nothing, especially when it’s socialism hitching a ride on the backs of our children.
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