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Monday, July 28, 2014
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ObamaCare: A Socialist Welfare Pyramid Scheme   (continued)
    by AL MARTIN (AL MARTIN RAW.COM)

ObamaCare: A Socialist Welfare Pyramid Scheme They said -- let's charge a premium as you would for a supplemental policy. Let's charge the poor $55 a month like the old ladies get charged for their supplemental policy, so we’ll charge that for Medicare and that will reduce the cost of Medicare at about $2 billion a year.

This whole issue of getting the 47% of the have-nots health insurance was politically popular to do. Progressive Democrats could have made this a non-issue if you could turn state-funded Medicaid into some sort of packaged HMO and that was proposed in the 1980s by Republicans but it never went anywhere.

What this means is that it would be effectively turned into an HMO which would have dramatically reduced the administrative cost because then instead of having a Medicaid card, the poor would have a Medicaid HMO card. It would have made the Medicaid system much more efficient because by packaging it up it would have given the states much more bargaining power with the pharmaceutical companies to buy drugs at reduced prices and give them the power to buy medical services at reduced costs.

The insurance companies knew which way the wind was blowing so to speak. That's why they have not attempted to prevent a lot of the states from their so-called block grant purchases. The insurance companies haven’t fought that because they know the government has all the leverage in that situation because there's enough people with private health insurance where the policy can still bill out $10 for an aspirin in the hospital. As long as you have enough people in the policy that sustains that kind of a billing, obviously there must be enough of those people. Otherwise the insurance companies would be much more aggressive and try to prevent block purchases by states and counties.

Then there's the programming of the American people regarding health care. People are told you’ve worked all your life and paid for these "benefits" and Medicare is part of what you’ve paid for by paying into FICA all your life. It should be noted that the $68 a month Medicare was deducted from your Social Security check, but Republicans make it sound like it's some sort of entitlement -- even though you paid for it all your life through FICA deductions. And that sells well with the Unwashed.

What Republicans neglect to tell the Working Class Republicans (WICKERs) who vote for them is that the FICA system only worked as long as you allowed the annual surplus the Social Security system generates to accrue into the trust funds. But that all changed in the 1980s when the WEBERs (Wealthy Bushonian Republicans) stole all of the money from the trust funds and put them in the red.

What Working Class Republicans have to be told is that if you're 60 years old now and you've paid FICA for 40 years -- that money doesn’t exist. It's long gone.

The FICA tax that you're paying as a defacto Social Security "contribution" tax you're paying now is not going into an accrued trust fund -- it's now being used to pay the interest on the debt that the Republicans pocketed from the fund -- when they took the $5 billion out of the fund in the late 1980s and replaced it with $5 billion of restricted Treasury Bonds with a 3-1/2% coupon that are worthless.


For the rest of this column by Independent Political, Economic & Market Analyst Al Martin, click here -- Al Martin Raw

* AL MARTIN, author of "The Conspirators: Secrets of an Iran Contra Insider," is an Independent Political-Economic Analyst with 25 years of experience as a trader on NYMEX, CME, CBOT and CFTC. He is also currently trading the commodity futures market day and night and has a teleconferencing service to facilitate transactions in the markets. This is a service for independent experienced traders.

For more details on commodity futures trading recommendations and more FREE sample columns, take a look at Al Martin's website "Insider Intelligence" Insider Intelligence for weekly exclusive commodity futures trading recommendations.



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