Health Care: At What Price?

David Green / October 07, 2009

Food or health care? For many of the poorest working families, that may no longer be an option should Senator Max Baucus’ health care bill become law. Through an individual mandate enforced by tax punishments, all adult Americans will be required either to purchase a health care plan or pay a fine. While only a nuisance for more affluent families, this has the potential to injure low-wage workers by decreasing real wages, increasing layoffs and reducing job opportunities. Should the poorest American workers be responsible to fund health care form?

Baucus’ plan would require all Americans between 133% and 400% of the Federal Poverty Level to pay a sliding percentage of their income for health care, increasing as the worker earns more. For an individual earning $19,915 annually, they would be required to spend as much as $1,145 on health insurance premiums, the rest to be covered by their employer. Based on the Bureau of Labor Statistics Consumer Expenditure Survey, an individual in this salary range spends roughly $268 per month on food. That comes to over four months of food, spent instead on mandatory health insurance. (more…)