The Fallacy of Obama’s argument that Health Care = Auto Insurance
President Obama was on the Sunday talk show circuit this week in an unprecedented 5 show appearance. His discussion around what is a tax and his analogy to equating health care to auto insurance is a fascinating glimpse into the mind of someone who thinks he can fools the American people. To wit:
1) He actually takes George Stephanopoulos to task for using the dictionary definition of a “tax”
2) Obama’s logic of comparing health insurance to auto insurance is completely faulty and PROVES THE EXACT OPPOSITE of his point! Obama says that we all pay about $900 per person in an “extra” fee for uninsured people’s health care. His argument is that by having EVERYONE buy health care we will somehow each pocket that difference. But the Auto Insurance market destroys that argument. Nearly every state that has mandatory auto insurance (48 of them), ALSO requires you to buy UNINSURED MOTORIST (UMI) coverage. Strangely enough, UMI costs between 15-22% of the total policy cost. So even with an auto insurance mandate, I AM STILL PAYING FOR THE UNINSURED. Except now its a line item on my bill versus a hidden cost. Well doesn’t that make me feel all warm and fuzzy inside now. More info at The Council on Affordable Health Insurance . Mr. Obama may be selling but the American people aren’t buying.
Full transcript at ABC
STEPHANOPOULOS: You were against the individual mandate…
OBAMA: Yes.
STEPHANOPOULOS: …during the campaign. Under this mandate, the government is forcing people to spend money, fining you if you don’t
How is that not a tax?
OBAMA: Well, hold on a second, George. Here — here’s what’s happening. You and I are both paying $900, on average — our families — in higher premiums because of uncompensated care. Now what I’ve said is that if you can’t afford health insurance, you certainly shouldn’t be punished for that. That’s just piling on.
If, on the other hand, we’re giving tax credits, we’ve set up an exchange, you are now part of a big pool, we’ve driven down the costs, we’ve done everything we can and you actually can afford health insurance, but you’ve just decided, you know what, I want to take my chances. And then you get hit by a bus and you and I have to pay for the emergency room care, that’s…
STEPHANOPOULOS: That may be, but it’s still a tax increase.
OBAMA: No. That’s not true, George. The — for us to say that you’ve got to take a responsibility to get health insurance is absolutely not a tax increase. What it’s saying is, is that we’re not going to have other people carrying your burdens for you anymore than the fact that right now everybody in America, just about, has to get auto insurance. Nobody considers that a tax increase.
People say to themselves, that is a fair way to make sure that if you hit my car, that I’m not covering all the costs.
STEPHANOPOULOS: But it may be fair, it may be good public policy…
OBAMA: No, but — but, George, you — you can’t just make up that language and decide that that’s called a tax increase. Any…
STEPHANOPOULOS: Here’s the…
OBAMA: What — what — if I — if I say that right now your premiums are going to be going up by 5 or 8 or 10 percent next year and you say well, that’s not a tax increase; but, on the other hand, if I say that I don’t want to have to pay for you not carrying coverage even after I give you tax credits that make it affordable, then…
STEPHANOPOULOS: I — I don’t think I’m making it up. Merriam Webster’s Dictionary: Tax — “a charge, usually of money, imposed by authority on persons or property for public purposes.”
OBAMA: George, the fact that you looked up Merriam’s Dictionary, the definition of tax increase, indicates to me that you’re stretching a little bit right now. Otherwise, you wouldn’t have gone to the dictionary to check on the definition. I mean what…
STEPHANOPOULOS: Well, no, but…
OBAMA: …what you’re saying is…
STEPHANOPOULOS: I wanted to check for myself. But your critics say it is a tax increase.
OBAMA: My critics say everything is a tax increase. My critics say that I’m taking over every sector of the economy. You know that.
Look, we can have a legitimate debate about whether or not we’re going to have an individual mandate or not, but…
STEPHANOPOULOS: But you reject that it’s a tax increase?
OBAMA: I absolutely reject that notion.