Posted by: bridget | 10 January 2007

California Follows Massachusetts’ Lead

Governor Schwarzenegger set forth a proposal to provide univeral health care for Californians.  Controversial aspects of his plan include providing insurance for minor illegal immigrants.

Much of the California health care problem is a result of illegal immigration.  Illegals do not contribute to the health care system but receive services – a net drain.  Those costs are borne by citizens who either pay taxes that go to hospitals or pay increased premiums.  Both situations make it difficult for the middle and working classes to afford to live in America and to afford health insurance.  Ultimately, there is a zero sum game: that which is granted to illegal immigrants is taken from citizens.  This new system also creates even more incentives to immigrate, regardless of the law.

One of the most common causes of bankruptcy is unexpected illness.  It is an odd state of affairs when Americans are ruined by health-care costs but their illegal counterparts are immune from disaster.  (The pachyderm will assume that the number of illegal immigrant families earning in excess of $60,000/year – who would also so admit – is negligible.)

The other nonsensical part of Arnold’s proposal is to redistribute funds.  Doctors and hospitals will pay 2% and 4%, respectively, of their revenues to a state fund.  That state fund will then be used to reimburse doctors and hospitals for the costs of treating the uninsured and underinsured.  While this sounds like a fine idea, in practice, it will only siphon funds away from medicine and into transaction costs.  A dollar removed from the medical profession cannot be redistributed back into the system as a dollar: a substantial portion of that money is spent in maintenance of the system.

California should try treating the underlying problem of illegal immigration and the accompanying drain on state resources before further burdening itself by creating a Great Society for all the world.



  1. Hurrah on a great blog. I lived in So Cal for 20 years and left bec it was becoming a criminal haven and the cost of living and real estate were absurd. I made out real well, sold my home in Valencia for a very inflated price compared to what I originally paid, moved out of state, bought a bigger home for half the price and banked the rest. Cool move for me. I have never missed leaving Calif.

  2. Your blog is on the very high level and includes a lot of very interesting information and was very useful for me.

  3. This blog is pretty cool. Just wanted to say hi!

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