Max Baucus of Montana is hard at work trying to force his healthcare bill through committee and onto the floor of the Senate. If he succeeds we could have a new healthcare system in this country before long. Of course the new system will take care of few if any of the old problems and simply create higher taxes and more government red tape.

As an astute politician Max understands that sometimes compromise is needed to pass legislation. Some changes made to his proposal should get serious attention from those of us who will foot the bill for this program. He has offered changes to the number of people being subsidized to pay for coverage and the penalty for not getting coverage has been lowered.

The Baucus plan will provide subsidies to families and individuals to help defray the cost of getting insurance. This subsidy is available to any family making under $88,200 or any individual making less than $43,230. Of course when we look simply at the dollars one can see why this would be offered. Neither figure is a huge income these days, because the cost of coverage can run to 5 digits for some families. The problem is when you consider what portion of the population will now be subsidized. According to 2005 census figures, this would cover 80% of American households. If Max’s plan goes through 80% of Americans will have their healthcare costs subsidized by the Federal Government. Is anyone silly enough to believe that this will not require higher taxes or cuts to other spending? This is simply an effort to buy support from the American people. By casting wide the net of those on the dole Max hopes to get more people supporting his proposal.

The next problem doesn’t seem like a problem at all. It can almost be spun as a fix to a problem I already addressed. Max’s plan to require all Americans to buy coverage or face a fine is obviously problematic. In recognition of this Max had lowered the fine for not having coverage from $3800 to $1900. This is recognition that many will defy the plan and admission that the purpose is not to defray the costs to the system of uncovered patients. If the system were enforceable and truly for the purpose of getting Americans covered a higher fine makes sense. By lowering it Max is admitting that his plan will quickly make many previously law-abiding Americans into criminals. What will their crime be? Choosing to spend their money elsewhere.