Senate health care plan could drive us to drink

Most Alaskans are familiar with the old Chilkoot Charlie's slogan: "We cheat the other guy and pass the savings onto you." In the new health care bills being debated in Congress, Alaskans are the other guys.

There is a great deal wrong with President Donald Trump's and the Senate GOP's health-care bill. For starters, as anyone within earshot of radio, television or internet advertising knows by now, the nonpartisan Congressional Budget Office, after scoring the Senate version, concluded the bill would result in 22 million people losing insurance nationwide.

The bill would fundamentally change the nature of Medicaid, and puts Alaska's health care in the hands of the state Legislature. Based on the recent, frustrating, and never-ending legislative sessions, are you comfortable with that prospect?

In addition, the bill would put per capita caps in place, rationing health care in a system that will allow insurance companies to charge older people and women more for insurance. The list goes on and on, but there is one aspect to this bill that will affect all of us — even those with private health care — the fleecing of Alaskans.

[Nothing is bigger for Alaska than this health care vote]

Besides stripping 22 million people of insurance nationwide, the bill would eliminate the net investment tax and the Medicare surtax, both of which are being paid by the wealthiest Americans.

So once the richest Americans get an unneeded tax break, guess who else it would tax. Give up? Most Alaskans with private health care.

The one "Obamacare" tax not eliminated in the draft bill is one referred to as the Cadillac tax. This pithily named tax will be paid by Americans with private health care plans that are deemed "generous."

This is where it gets sticky for Alaskans. We have the most expensive health care in the country. That is a documented fact.

In response to our high-cost environment, Alaska employers often provide plans designed to meet the needs of folks in this predicament. In other words, our expensive health care results in what appears on paper to be a "generous" plan.

But even the basic Alaska plan can be far more expensive than commensurate plans in New Mexico or other low-cost states.

Perhaps some private sector plans could be considered Cadillac plans, but I guess it depends on your definition of a Cadillac.

When I was a kid my dad bought an old used, 1972 Cadillac Coupe De Ville. He thought he got it for a bargain. He didn't. It had a 472 cubic-inch gas-guzzling V-8 engine with a bad exhaust leak, worn-out interior, and it drove like a giant meandering tank. Sure, it was a Cadillac, but…

Similarly, many private health care plans in Alaska have exorbitant premium costs, but they don't provide the quality coverage they used to.

[Murkowski and Sullivan face health care choice that leaves Alaska ailing]

So when the Cadillac tax kicks in, it appears more Alaskans would be paying that tax on a per capita basis than any other state.

Cheating Alaskans for Outside millionaires, and stealing coverage from millions of Americans and tens of thousands of Alaskans, and then spreading the burden further on our state's residents by taxing their already expensive private health care plans is a nightmare for Alaska.

We are counting on our senators to reject this bill, which would make Alaska's terrible health care situation worse, and hit working class Alaskan families the hardest.

If it passes, maybe we should all meet up at one of our favorite Alaska watering holes for a stiff drink. If we can afford it.

Vince Beltrami is president of the Alaska AFL-CIO and a former candidate for state Senate.

The views expressed here are the writer's and are not necessarily endorsed by Alaska Dispatch News, which welcomes a broad range of viewpoints. To submit a piece for consideration, email commentary@alaskadispatch.com. Send submissions shorter than 200 words to letters@alaskadispatch.com.