Hopeful and Hopeless
SCOTUS yesterday stepped in and stopped the sale of Chrysler to Fiat. This is terrific news.
Why? Because the administration broke bankruptcy law with this deal, and the bankruptcy court (under pressure from the White House) and appeals court in New York did too.
Our bankruptcy law is clear. So clear, in fact, that from what I've read other countries have mimicked our bankruptcy practices to their benefit. And those laws state that secured lenders get paid first. That'd be the teachers and police officer pension funds in Indiana (who started the suit against the deal). Under the White House approved plan, they are paid AFTER the unsecured lenders (read: Unions). This violates bankruptcy law. And the White House should not be able to bully them into accepting the bad offer.
The fact that the Supreme Court is looking into it, makes me so happy and restores some of my faith in the greatness of the United States governing apperatus. If they can perform as the check they are meant to on the insatiable power this White House seems to be after (compensation control on banks, running car companies, etc), I will be happy.
I realize that Michigan and Canada are scared out of their minds because they are afraid Fiat will walk and Chrysler will liquidate and they will lose even more jobs. But ... thems the breaks. But like the guy in Indianna said, Fiat is getting a sweetheart deal and not having to put forth a dime to do it. Why would they walk? (They might if they think the Administration can't dictate the car company as they want it run, I guess. I dunno.)
I really wonder if it were back in the day this administration would bail out type writer companies and buggy whip salesmen.
But ... on another note ... leaks about the proposed health care reform bill are making me very nervous. Originally President Obama said he wouldn't support a plan to tax healthcare benefits (a plan offered by McCain, of all people) but now as they look at the books and realize they can't afford the $1.3T for a public insurance option, he's reconsidering it.
What this means is, right now healthcare benefits are included in your employment package, but they aren't taxed. So let's say your salary is $30,000, you pay your premiums for your insurance pre-tax and your company pays their portion pre-tax. I'm not sure what the estimated cost is but let's say it's a total of $15,000 a year that you and your company pay for your health care benefits. You will still only be making $30,000 a year, but you will be taxed on $45,000.
So if you are taxed at 20% of your $30k, you bring home $24,000 (probably getting most of that back in April). Under this new plan, you'd bring home $21,000, and that's if the adding in of your health care benefits doesn't put you into a new tax bracket.
Now, I know many people think paying more taxes is what we just need to do now. Okay then. Here is the other scary thing.
The government, in an attempt to control costs, is going to partake in research that determines which medical procedures are cost-effective and beneficial to patients. This information will then be used to impose federal regulations so that no one place / person / doctor is running up the costs for the entire country. What this means is, medical procedures that the government finds too expensive, will no longer be covered under the public insurance plan, and in an effort to control costs, will not be covered by private insurance plans.
Beaurocrats are going to research medical practices and procedures. Beaurocrats. Kids with poli sci degrees. Those that are against the repeal of Roe v. Wade because they don't want the government / judges interfering with a womans access to any and all health care options should be stringently paying attention to this plan.
Like I wrote earlier, what is to stop them from saying that annual exams are not necessary but once every 4 years like they do in Europe? Or that mamograms aren't beneficial until the age of 55? I know, I know, I know that we need health care reform and better options for those that are struggling ... but please pay attention to what they are doing behind close doors. It has lasting ramifications that if not fought against we will all suffer from.
I know everyone has forgotten about the VA and the treatment our veterans get. Remember, that is government run health care. Inability to get quality treatment in a timely manner. That's what our Vets deal with every day.
The biggest problem I have with this new plan? It will force private insurance away. If private insurance is to compete with a public offering, the public offering needs to be held the same rules of profitability. But it won't be. A government option can operate at a loss and request more money from the Fed who will borrow the money from somewhere else.
A private company can't do that. A private company that operates at a loss lay's off thousands of people and shutters its doors. This is what we've seen as doctors struggle to deal with Medicare and Medicaid, two entities that don't pay what procedures cost and ask the private insurers to pick up the difference. They are one of the main causes of the rising costs of health care, because their low payments transfer balances to private insurers. Example: medicare pays $20, bill is $60, $30 added on to those patients who have private insurance.
I know that health care needs reform. But we need open door debate so that the people can see and examine the health care options Congress is attempting to put before them.
Sorry so long.
Why? Because the administration broke bankruptcy law with this deal, and the bankruptcy court (under pressure from the White House) and appeals court in New York did too.
Our bankruptcy law is clear. So clear, in fact, that from what I've read other countries have mimicked our bankruptcy practices to their benefit. And those laws state that secured lenders get paid first. That'd be the teachers and police officer pension funds in Indiana (who started the suit against the deal). Under the White House approved plan, they are paid AFTER the unsecured lenders (read: Unions). This violates bankruptcy law. And the White House should not be able to bully them into accepting the bad offer.
The fact that the Supreme Court is looking into it, makes me so happy and restores some of my faith in the greatness of the United States governing apperatus. If they can perform as the check they are meant to on the insatiable power this White House seems to be after (compensation control on banks, running car companies, etc), I will be happy.
I realize that Michigan and Canada are scared out of their minds because they are afraid Fiat will walk and Chrysler will liquidate and they will lose even more jobs. But ... thems the breaks. But like the guy in Indianna said, Fiat is getting a sweetheart deal and not having to put forth a dime to do it. Why would they walk? (They might if they think the Administration can't dictate the car company as they want it run, I guess. I dunno.)
I really wonder if it were back in the day this administration would bail out type writer companies and buggy whip salesmen.
But ... on another note ... leaks about the proposed health care reform bill are making me very nervous. Originally President Obama said he wouldn't support a plan to tax healthcare benefits (a plan offered by McCain, of all people) but now as they look at the books and realize they can't afford the $1.3T for a public insurance option, he's reconsidering it.
What this means is, right now healthcare benefits are included in your employment package, but they aren't taxed. So let's say your salary is $30,000, you pay your premiums for your insurance pre-tax and your company pays their portion pre-tax. I'm not sure what the estimated cost is but let's say it's a total of $15,000 a year that you and your company pay for your health care benefits. You will still only be making $30,000 a year, but you will be taxed on $45,000.
So if you are taxed at 20% of your $30k, you bring home $24,000 (probably getting most of that back in April). Under this new plan, you'd bring home $21,000, and that's if the adding in of your health care benefits doesn't put you into a new tax bracket.
Now, I know many people think paying more taxes is what we just need to do now. Okay then. Here is the other scary thing.
The government, in an attempt to control costs, is going to partake in research that determines which medical procedures are cost-effective and beneficial to patients. This information will then be used to impose federal regulations so that no one place / person / doctor is running up the costs for the entire country. What this means is, medical procedures that the government finds too expensive, will no longer be covered under the public insurance plan, and in an effort to control costs, will not be covered by private insurance plans.
Beaurocrats are going to research medical practices and procedures. Beaurocrats. Kids with poli sci degrees. Those that are against the repeal of Roe v. Wade because they don't want the government / judges interfering with a womans access to any and all health care options should be stringently paying attention to this plan.
Like I wrote earlier, what is to stop them from saying that annual exams are not necessary but once every 4 years like they do in Europe? Or that mamograms aren't beneficial until the age of 55? I know, I know, I know that we need health care reform and better options for those that are struggling ... but please pay attention to what they are doing behind close doors. It has lasting ramifications that if not fought against we will all suffer from.
I know everyone has forgotten about the VA and the treatment our veterans get. Remember, that is government run health care. Inability to get quality treatment in a timely manner. That's what our Vets deal with every day.
The biggest problem I have with this new plan? It will force private insurance away. If private insurance is to compete with a public offering, the public offering needs to be held the same rules of profitability. But it won't be. A government option can operate at a loss and request more money from the Fed who will borrow the money from somewhere else.
A private company can't do that. A private company that operates at a loss lay's off thousands of people and shutters its doors. This is what we've seen as doctors struggle to deal with Medicare and Medicaid, two entities that don't pay what procedures cost and ask the private insurers to pick up the difference. They are one of the main causes of the rising costs of health care, because their low payments transfer balances to private insurers. Example: medicare pays $20, bill is $60, $30 added on to those patients who have private insurance.
I know that health care needs reform. But we need open door debate so that the people can see and examine the health care options Congress is attempting to put before them.
Sorry so long.
Comments
Not all of us have forgotten, not by a long shot. My father received care from several VA centers. Some were good and some were places I wouldn't send an enemy.
We moved Dad up here to DFW because there was better medical care then what he could get in the Mississippi VA. I think access to that care was one of the factors that kept him alive for another 3 years after he should have died.
Great post.