Sen. McCain's Health Insurance Plan

Sen. McCain wants to make employer H&W contributions taxable and offset that with a $5000 tax credit for everyone who buys health insurance. OK, I think employer paid H&W is a relic from WWII wage and price controls that should have been done away with in 1945 and I think people who buy their own health insurance should be able to deduct the cost. That’s as far as my agreement goes.

I ain’t volunteering for a massive personal tax increase! $5K won’t start to buy decent health insurance for a family in any industrialized, unionized state. I think Kowalski said he was paying about $9K for a family plan in MA. Between the employer contribution and our payments, my wife and I EACH pay about $14K. Now that’s for true Cadillac coverage; beyond a minimal deductible and co-pays, we pay nothing for health care, no matter how complex and expensive with the double coverage. That said, the individual costs here in Alaska aren’t much higher than in the other West Coast states or in the industrial MidWest. So, under Sen. McCain’s plan my taxable income just increased by $23K/yr!

Sen. McCain needs to sharpen his pencil on this one. Either limit the plan to providing deductibility for those who buy their own plan or there needs to be some state or regional factors for costing the credit.