McCain suggests that his plan will “foster competition and drive down prices,” but the retail price of the average plan would have to drop from $12,100 per year to $8,300 in order for the average family to see no premium increase. In an era where medical premiums have nearly doubled in the last seven years, can anyone rationally expect that health insurance costs will drop 31% as a result of McCain’s plan? No.
While the promise of a $5,000 tax credit will sound like a great plan to many voters, it is nothing more than another device to shift the cost away from corporations and onto the backs of the working and middle-class. The McCain plan is a loser for ordinary Americans.
Cross posted from my blog, No Drumlins.