Wednesday, November 28, 2007

Paying for Health "Reform": Massachusetts' Missing Millions  

Tax Collectors Retreat, But Never Surrender

Categories:  California, Massachusetts

A few days ago, I figured that Massachusetts would collect about $9 million from businesses that failed to comply with the Commonwealth's new mandatory health insurance scheme. (This would be on top of fines levied on individuals themselves.)  Then, we learned that the program was looking to cost a lot more than anticipated, primarily because the people who will receive subsidies to sign up are doing so, while those who have to pay full premiums are holding back.  What a surprise!

The latest is that the state will only collect about $5 million from businesses that do not comply - little more than half what my envelope-scratchings reckoned.  That's a serious shortfall from the $45 million anticipated when Gov. Romney signed the legislation in April 2006.

That $5 million money-grab will come out of the pockets of 518 companies.  Of 62,000 required to report their health benefits to the state, 44,000 have complied on time, but more than half of those were too small to be subject to the mandate.

Observers do not believe there's much financial blood to be squeezed from the stones of the 18,000 firms that have not complied.  Needless to say, advocates of government-monopoly health care are disappointed that the shake-down is not giving them the cash they think they deserve, and blame - of all people - former Governor Romney!

Gov. Romney thought the tax was too high, and vetoed the line-item.  The Legislature over-rode his veto and re-imposed the tax, but "allowed the administration to determine how it would be applied."

Well, that would be an executive function, wouldn't it?  And they've got a more amenable governor now:  Governor Patrick wants to move full steam ahead with "universal" coverage, so the raid on corporate coffers should be able to proceed according to plan.  If it's not, it's because they know businesess are ready to flee the Bay State.

Gov. Romney, whose health care record in Massachussets is proving a drag on the presidential campaign trail, has now been disowned by the advocates of government-monopoly health care.  Having enlisted a nominally market-oriented Republican governor to embrace a notion of "universal" health care that advances government intrusion, they have no further use for his contribution to their cause.

Gov. Romney now finds himself stuck in the middle, viewed with suspicion by health reformers on the right and the left.  An experience from which one hopes other Republican governors will learn......Hello, Sacramento? Is anybody listening?



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