When we look around our great country, we find many things that affect the economy. When the price of gas is up, generally speaking, so are the cost of groceries, as it takes a delivery vehicle to get the goods to the store. The vehicle runs on gas.
This hot summer we have seen an effect on the farmers and crops. I have not checked the price of corn, but the corn I have eaten has been affected by the heat.
I have said for a while that the cost of insurance has to go up under the Patient Protection and Affordable Care Act (PPACA) otherwise known as Obamacare. It has to go up for several reasons. One, more mandated benefits! The more a plan has the more it has to cost. There are a lot of preventative services that are now included in all plans. We keep hearing that these are “Free”. There is a cost for “free”, it is built in to the premium. If it were up to me (and it is not) I would make that a mandatory option on all plans, meaning that all insurance carriers must offer that and tell you what it will add to the premium. The consumer can decide if they want that or not. Either way we are seeing premiums increase due to these benefits. They will also go up because if you accept pre-existing medical conditions, and try to spread the risk out, healthy people will pay more than the otherwise would, to cover the sick. The same holds true with younger adults. They are usually healthier than someone say 20 or 30 years older. They will pay more to subsidize the older people.
Now this week Papa John’s Pizza came out and said they will pass that added expense on to their consumer. It is expected to be about fourteen cents per pizza. Looking at the Papa John’s menu in Crest Hill, Illinois, which is the closest to my home, a large pepperoni pizza is $14.04. So the added health care adds about 1% to my order. Would you consider it a 1% tax?? I wonder if other businesses would follow that pattern and add costs to other purchases. What if I am at the hardware store and need to buy a new lawnmower. For purposes of discussion we will say it costs $300. Will I have to pay an extra $3 for home depot employee’s health insurance? We know that there are already 20 taxes in the health care law. I already have to pay $300 per month for my health insurance. Will I have to subsidize other peoples with all of my purchases?? Yes, of course I can choose what to buy and if I need it, but I wonder if soon everything will be subject to a health care tax. Thanks for reading!