America Disabled if Sen. Kennedy’s Disability Plan Sails Thru Congress?

Disability insurance could be the next ‘freebie’ from the U.S. government, if Sen. Edward Kennedy has his way.

The Wall Street Journal reports that Kennedy’s disability insurance program would automatically enroll every working American in the program, and premiums would be at most $65 per month. WSJ’s Laura Meckler also reports that those living in poverty and students who are also part of the working population would be billed just $5 per month for premiums.Now, one could opt out of the program. But those who participate in the disability insurance program could get a cash benefit of at least $50/day if they become disabled, with the understanding that participants would be eligible for benefits after 5 years.

An estimated $320 billion would be collected from the disability insurance program in one year, if every working American participated. Do a few questions come to mind? How safe would that money be from the U.S. government’s sticky hands? Would the $320 billion really be in a ‘lockbox,’ safe from greedy, spendthrift leaders in Washington? Supposedly the government could not spend this $320 billion on other programs; it would be sacrosanct.

Medical schools would also be affected by Kennedy’s plan. How? Change to the curriculum would be dictated to medical schools.

Sen. Kennedy’s plan would also reach into medical schools, according to the committee brief. “The Hippocratic Oath says: ‘First, do no harm,’” the brief says. “A reformed curriculum will teach the next generation of health care professionals: First, prevent unnecessary disease.’”

To be fair, the proposed bill also includes language to incent people in the program to remain healthy, and would attempt to rein in medical errors, as well as not allow health insurance companies to deny coverage to individuals with pre-existing health conditions. S. 697 is the proposed disability insurance plan being discussed by various committee members in the U.S. Senate.

An outstanding question is, how much will such a program cost the taxpayers? $320 billion does not seem like enough money to pay disability claims to those Americans who may become disabled. And doesn’t this seem like a mini-Medicare? You know how well Medicare is doing. <grin>

As the proposed bill is written, participation in the disability insurance plan is not mandatory. Do you think every working American, from age 18 on, will participate in this plan, or will a number of workers opt out? And if a number of workers opt out of Kennedy’s disability insurance program, will the program be viable long-term, or will it eventually need a…..bailout?