President's Weekly Address (10/3/09) - Health Care and its Impact on Job Creation

President Obama's weekly address to the nation today focused on creating the link between reducing health care cost and growing jobs in small businesses.

"I hear about it from small business owners who want to grow their companies and hire more people, but they can't, because they can barely afford to insure the employees they have."

If this is the problem - that is, it's costing too much for small businesses to provide health insurance to their employees - then is not the solution the de-linking of health insurance from the employment process? I don't buy my auto insurance from my employer so why should I continue buying my health insurance from my employer? Why doesn't President Obama and the Democrat leadership come out and say, "Effective Jan 1, 2012, all tax breaks to companies based on the cost to ensure their employees will expire; States are forbidden to add any mandates to health insurance policies that infringe upon every American's right to buy the right health insurance, across all state lines, in accordance with Article I Section 8; Meaningful tort reform will be enacted."

Imagine that glorious day when we are unfettered in our ability to buy the health insurance that is right for each of us; to take it with us as we change jobs; to be an active participant in the market-based process for reducing cost; for seeing billions and billions of our tax dollars returned to us as we shrink the Health and Human Services department; when we realize that we are free, in this one important part of our lives, from the meddling and corruption of government; when we taste freedom again.

Unless WE THE PEOPLE demand the de-linking of health insurance from the terms of employment we will never get this millstone of rising health costs from around our necks. However, liberal democrats don't want to touch the third rail of employer-provided health care because union members typically have the best health insurance in the country.

Employers don't want to lose this tax break because more of the compensation they provide to their employees will be in direct pay as opposed to indirect health care (fringe) benefits. Because future pension payments at many companies are based on direct compensation, businesses would face higher pension costs if they were forced to stop providing tax-deductible health insurance to their employees. Also, businesses know that employees are willing to suffer more in a dead-end job that has health insurance than make the jump to a new venture that may not have health insurance. In this way, many people feel trapped in their current jobs and employers would just as soon not see a higher turn-over rate at their companies.

So, who wins if we move to transportable, individual-purchased, "right sized", boundary-less health insurance? Well, WE THE PEOPLE, do.

We will get government out of our lives; we will be able to buy a policy that fits where we are in our lives; we won't be chained to a dead-end job for fear of losing our health insurance; we will eliminate a raging river of corruption by getting government bureaucrats out of the health care delivery system; we will regain our sovereignty.

Below is the letter I wrote to President Obama asking him to consider an alternative solution to the problems he discussed in this week's address:

Dear President Obama,

I listened to your weekly address today (10/3) and share your concern about the impact of rising health insurance cost to the prime generator of jobs in this country - our small businesses.

The solution to the problems that you so clearly articulated is right before us, if we are willing to compromise with a spirit of civility and seriousness of purpose.

If the cost to small businesses is too high to ensure their employees' health, then de-link health insurance from business and make the purchase of health insurance similar to the purchase of auto insurance or home owners insurance.

Eliminate all federal laws that give business tax breaks to ensure their employees and establish, instead, an environment in which all Americans can buy the health insurance policy that is best for them.

Encourage Congress to employee the Commerce clause to rid the process of purchasing health insurance by individuals of cost-driving mandates that vary state-by-state. Just as our Founders recognized the benefits of having interstate commerce unfettered by the whims of the several States, we see clearly that the local mandates have made the purchase of health insurance far more difficult and costly than it needs to be.

Establish an environment in which a young, healthy American is not required to pay for ridiculous coverage that he /she does not want. Establish an environment in which a person’s health insurance is as transportable as their auto insurance as people change jobs and pursue their entrepreneurial dreams. Create an environment in which small businesses can focus on growing their business and not shopping for health insurance in the arcane labyrinth that our government has created with simple health insurance.

This vision can be realized and your place in history as one of our greatest presidents can be guaranteed if only you see this obvious solution - to de-link health insurance from businesses - and act with the boldness and passion that is within you. De-linking health insurance from business, implementing meaningful tort reform and creating a safety net for those among us who can’t pay for the maintenance of their own health – simple acts, really, will guarantee you re-election in 2012.

Allow Americans the choice - without government mandates or even "nudges" - and marvel at our ability to create wealth for the benefit of all Americans. However, should you cling to the notion that a bigger government involvement in health insurance will unleash America's great capacity, then you are, respectfully, quite mistaken and the damage in Nov 2010 and Nov 2012 will be monumental. I fear you will be regarded by history as the victim of the tyranny of circumstances.

We have given you the power to lead America, but not to ruin us. Please, reflect on my words in the civil manner in which they are presented. I look forward to hearing from you.

Best Regards -

Craig Powers
Hudson, New Hampshire

PS – Thomas Jefferson suffered the same “tyranny of circumstances” that you face now. He rose to the challenges of the office, set aside the bitter acrimony of the partisanship that characterized the election of 1800, and laid the foundation of America’s future greatness. Please, President Obama, put aside the partisan jabs at those of us who see a different solution to our common problem and listen to us as you have asked us to listen to you.