Part of the problem with the entire SCHIP program is that there’s significant evidence that it’s eroding the private health insurance market.
It’s unlikely that the Frosts, a family clearly in the upper half of the socio-economic strata, would permit their children to go uninsured. If there were no SCHIP, I’d bet dollars to donuts that this family would have found a way to insure their kids.
But, with SCHIP, they can insure the kids and not have to pay for it!
These aren’t irresponsible parents. Far from it. They have worked the system to provide for the needs of their family, and by obtaining free health insurance for their children, they’ve left more resources available to their family.
But that’s the problem. SCHIP is often winding up insuring kids WHO WOULD HAVE BEEN INSURED ANYWAY!
And that’s the problem with the Democrats’ new SCHIP bill - for every uninsured child signed up under the new bill, TWO insured kids would be signed up, and removed from the private health insurance system.
Which further erodes the private health insurance system.
Which increases government control of health care in the United States.
Which leads, ultimately, to nationalized, probably to single-payer health care.
* shudder *
But the parents here are not the irresponsible ones. They are doing the best they can for their family, using what resources are legally available to them. I find it difficult to fault folks for taking advantage of every legal edge provided to them.
sitetest
Is there a sarcasm tag missing?
The Democrats have put this family in the crosshairs of the IRS. From self-employment taxes to gift taxes (on the grandparents), it is apparent this family is gaming the system.
For example, on SE income of $45,000, self-employment tax liability of almost $7,000 would be owed (45000 X 15.3%). AFAIK, there are very few ways to offset that liability, as opposed to normal tax credits on income taxes.
The glare of public scrutiny will most likely end up burning the members of this family. Not that Harry Reid will be bothered. He'll just move on to the next group of javelinas sucking on the government teat.