LA Daily News - Health care plan recipe for disaster
BY JON COUPAL, Guest Columnist
Article Last Updated: 12/19/2006 06:52:12 PM PST

STATE Senate President Don Perata has a plan to provide all uninsured working Californians with health insurance at an estimated cost of $5 billion to $7 billion without a tax increase. OK?

The Perata plan would force businesses that do not provide health insurance and their employees, through a payroll deduction, to pay into a state agency that would attempt to negotiate for 'affordable' coverage. When paying taxes, workers would have to show proof of medical insurance.

This is just plain wrong on so many levels. Let me count the ways.

A plan that is estimated to cost $5 billion to $7 billion will, if past government program estimates are any guide, cost a lot more than first advertised. One only has to look at the Bush prescription benefit plan as a reminder.

Apparently our state's second-most-powerful elected official believes there is such a thing as a free lunch. He should know that a plan that compels businesses to lay out more for labor than its market value is a tax on those businesses. It will cost businesses and, as the increased costs are passed on, it will also cost consumers, too.

Employees, many working at low-wage jobs, will see a reduction in their paychecks. Just like the other taxes they pay, this health insurance charge will translate into less take-home pay.

As the cost of employment goes up, workers are likely to face a second problem: fewer jobs. What is worse than no health insurance? No health insurance and no job.

And proof of insurance to pay taxes? This would only force one more nuisance, clerical mandate on a public already overwhelmed with nuisance mandates.....More"