Do Blue Dogs Want Lower Incomes, Fewer Jobs, and Bad Health Care?

Robert Book / July 28, 2009

Political scientist Jacob Hacker claims in the Washington Post that the “Blue Dog” Democrats’ opposition to Obama’s “public plan” is not in the interests of their constituents – particularly farmers, ranchers, small business owners, and low- and middle-income workers, who would supposedly benefit from premium assistance and from the cost reductions he claims a Medicare-like public plan for the non-elderly would bring, as well as from the requirement that “all but the smallest of employers make a meaningful contribution to the cost of coverage.”

On the contrary, it is precisely these provisions that would raise health care costs and harm the most economically vulnerable workers and entrepreneurs, while increasing health care costs for everyone. The requirement that “all but the smallest of employers make a meaningful contribution to the cost of coverage” is to be implemented by requiring employers who don’t provide health insurance to pay an 8 percent payroll tax – but the bill specifically states that this tax will NOT be credited toward worker’s premiums, even if they sign up for the public plan. So it won’t do workers any good in terms of providing them with health coverage – plus, as a tax on employment, it will force pay cuts and layoffs on those who can least afford them. It will kill the jobs of middle- and lower-income workers at a time when unemployment is already at historic highs, and do nothing to help those who retain their jobs to pay for health coverage. (more…)