The standard mantra of any insurance company is to “deny, deny, deny. They can always appeal.”

When taxes are too low, there is great incentive on not paying claims, but instead, keeping that money as profit.

You, the claimant probably pay $300 dollars per month for your medical insurance. Your company probably also pays $300 a month for your medical insurance. (Unless your were grandfathered and now have your employer paying the full $600 per month of your contribution).

$600 a month equals $7200 a year.

Your deductible is probably $2000… meaning you have to spend the first $2000 out of pocket before the insurance kicks in… On that $7200 let’s assume the insurance company probably pays 15% in total taxes, meaning that it keeps $6480 to itself.

If tax rates return to 50% as they were during Ronald Reagan’s term…. The insurance company nets $3600 to itself.

Some may cry (boo, hoo, hoo) that higher taxes cost the insurance company $2880… They will raise their rates….

Probably not. Because a wiser insurance competitor will steal you away without costing you more money.

What will most likely happen, is that the insurance company will approve more claims. If the insurance company by lowering or removing its deductible for example, pays out $2000 more in benefits to its recipients, then of that $7200 it took from you, it will make in after tax (50%)profit , … $2600… or a thousand less than if no claims were processed…

But wait.. They paid out $2000 dollars, but the bottom line cost to them, was only $1000?

Exactly. Which is where high taxes on profits, helps you and me and the rest of the middle class… Why risk losing a paying subscriber by denying his claim, when that denial is only going to the Federal government anyway?

“Aww, go ahead, approve it”, the supervisor chimes.

Now you probably can’t use that $2000 coming back to you from what used to be medical expenses, for anything else in your budget, but I sure could…

It’s about time that all America realizes they were guilty of one gigantic scam these past thirty years… All this crying about no higher taxes…

It has reached the silliness of Republicans parading around naked, (not just showing their body parts on Twitter). Each and every Republican pledged that a 10:1… cuts/tax increase ratio was too high of a tax hike…

Which means, they don’t want that $2000 dollars in paid benefits to hit your pocket. They’d rather you pay your $2000 on top of the $7200 your insurance costs you…..

Higher taxes on corporate profits and on investors, solve a lot of the middle classes problems.

Advertisements