The Great American Swindle Part Two—Government Sponsored Health Care

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Whether you are a young adult attending college, an individual who needs health insurance, an American family that bought a home or a Senior Citizen you are probably being swindled by the government when it comes to your financial security. When I began to write this blog, it was going to be a three part blog relative to the government intervention in our daily lives. Unfortunately, another government program is about to implode and Part 2 will examine Government Sponsored Health Care or as it is commonly known as “Obama Care”.

Many representatives in Washington have been calling for the US Government to intervene and take over health care for years. Everyone wants affordable health care, but programs run by the government are always costly, very inefficient and oversight is lax. If you take a look around the modern world, most countries offer some sort of government health care. In Canada and most of Europe, citizens are provided health insurance and for the most part endure very high taxes. Americans bristle at the thought of paying higher taxes, remember the Boston Tea Party? Americans hate, and I mean hate, to pay taxes; it is part of our DNA.

When first introduced Obama Care was to be a revolutionary program that would allow all individuals, families and children to purchase health insurance. If you were unable to afford the premiums, the US government would provide funds for states to meet the needs of the uninsured. The program was rolled out in a hurry and in typical government fashion, no one knew how the program really worked. The government website for initial enrollment was overwhelmed it immediately crashed. The forms were long and very difficult to fill out; the rollout of the program had to be restarted several times.

After several years, most people know little or nothing about the workings of Obama Care. If you ask the average person about Obama care, they will tell you it is free or low cost health care. Most people do not know that states administer the programs with federal funding. The average American does not realize that individuals and businesses shoulder the biggest burden of the costs. Most Americans do not even realize that you must be enrolled in a health care plan or there will be a penalty assessed on your tax return.

Unfortunately, our government is controlled by lobbyist and special interest groups. The insurance industry has one of the most influential lobbies on capitol hill. The insurance companies are enjoying record profits as a result of the rule that everyone must be insured. Affordable health care is anything but affordable and insurance premiums have increased nearly 30% in the last year.. Perhaps if insurance companies did not spend so much money trying to influence Washington, they could offer more affordable health care.

Government control and interference in our daily lives is increasing at an alarming rate. America was founded on the principles of its citizens being in control, not the government. If you look at the current election cycle, bold promises are being made that government can help you with your college debt, provide you with health care and protect you from everything from diseases to terrorist. What they do not tell you is to pay for all of the services they provide everyone will pay more for goods, services and taxes. After all, the only way the government pays for anything is to tax its citizens.

Take a look at our national debt, it is now over 19 trillion dollars. This country simply cannot continue to operate at a deficit forever and the day of reckoning will come. Even if there were a balanced budget every year, there is no way to pay down the debt in our generation or maybe even the next generation.

Part 3 will look at the pitfalls of refinancing of houses with little or no equity under the HARP & HAMP Program.

Stan Mroz, CPA is a full service firm offering accounting, bookkeeping, tax and consultation services. We have affordable rates to fit most any budget. We also offer a “fresh look” at your prior year taxes to make sure you do not pay more tax than you should. Call us today for an appointment.