Bush is scheduled to announce a health insurance plan for the nation at his State of the Union address this week, but don’t worry–GoozNews (which I just started reading a couple weeks ago, and it’s great) has already summed things up for us . He does the math for the poor and the rich:

You don’t have to be a rocket scientist to figure out that this proposal provides a powerful incentive for healthy, well-off families to abandon their employer plans if their employer gives them that option. And employers will increasingly want to do that since it will save them money: the cash grants will always be less than the cost of insurance. Indeed, as more and more well-off, healthier families opt for the grants, only the sickest and most costly employees will remain in the insurance pool. This will drive the cost of regular insurance higher and further erode employers’ willingness to continue paying for it.

It’s hard not to conclude that this plan was carefully designed to put another nail in the coffin of the employer-based health insurance system, and build upper-middle-class support for individual families purchasing their own plans and care. It has nothing to do with insuring the uninsured, since the benefits are far less than what is needed to effectively move them into the insurance pool.

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