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    Obamacare Reality Check: Fee on Private Insurance

    08/10/2009

    11 ‘‘SEC. 4375. HEALTH INSURANCE.

    12 ‘‘(a) IMPOSITION OF FEE.—There is hereby imposed

    13 on each specified health insurance policy for each policy

    14 year a fee equal to the fair share per capita amount deter

    15 mined under section 9511(c)(1) multiplied by the average

    16 number of lives covered under the policy.

    17 ‘‘(b) LIABILITY FOR FEE.—The fee imposed by sub

    18 section (a) shall be paid by the issuer of the policy.

    From Page 828 of H.R. 3200

    H.R. 3200, the health care bill introduced by Rep. Dingell (D-MI) and touted by the White House's Health Insurance Reform Reality Check website, will impose a fee on private health insurance.

    Americans who are concerned about a government takeover of health care should take special note of this section.  FreedomWorks and others have argued that more government control, especially through a public option, would lead to a government takeover of health care.  Special fees on private insurance will give the government-provided insurance (public option) even more of an advantage over private plans and end up herding more Americans into a government plan.

    Insurance companies might face new fees on their plans, but they will still support a bill that forces individual mandates and a national exchange on Americans.  Adam Smith writes, "I have never known much good done by those who profess to trade for the public good."  Americans should be watchful of government and the businesses that seek to use it for profit.