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Sunday, December 20, 2009


by JC Leahy

Current Democratic health care "reform" proposals, including both the Senate and House health care bills, assume that (1) everyone needs health insurance, (2) competition occurs when consumers have choices among health care insurance plans (3) health care spending in America is at PROBLEM levels and needs to be reduced (beginning with a $500 billion medicare hit on our parents) (4) an amazingly huge Federal bureaucracy is needed to manage distribution of health care resources, and (5) the Federal Government is capable of safeguarding our funds to pay for health care.

By contrast, the Leahy Health Care Reform Vision assumes that (1) everyone needs access to health CARE, (2) health care spending is a GOOD thing as long as the consumer is getting a good value for his/her money, (3) individual people and their families are the best judges of good value, (4) competition occurs when patients select specific health care services and products DIRECTLY FROM PROVIDERS based on benefits and PRICES (5) paying a huge, expensive Federal and insurance bureaucracy to spend our very own health care money would be fundamentally stupid, and (6) money for helath care is best safeguarded by private ownership.

Here are some advantages of the Leahy Vision:

** Complete portabality when you change jobs.
** No exclusion of pre-existing conditions
** Patients, not bureaucrats, decide what is covered.
** No new Federal bureaucrats are required.
** Medicare is strengthened and preserved, not raided.
** Our childrens' future is not mortgaged to the Chinese .
** Employers become freed to create jobs.
** Health care prices are controlled by supply and demand.
** Wealth is safeguarded by private ownership.
** Without regard for private-pay status, everyone pays fair prices.

12-Point, 2-Page, Leahy Health Care Reform Vision:

1. Reform Health Care Cafeteria Plans – Step one is to remove the use-it-or-lose-it provisions of health care cafeteria plans! (See earlier Journal article for an explanation of health care cafeteria plans.) All you have to do is allow unused balances at the end of every year to carry forward, and allow them be managed exactly like 401k’s.

2. Create Corresponding Plans for the Self Employed

3. Mandate Health Care Savings - Collectively, the plans contemplated in #1 and #2 we will call, Neighbor Bill Accounts. Every man, woman, and child in America who is legally employed will be highly incentivized to contribute not less that 9% and not more than 15% of gross earnings to a Neighbor Bill Account. Every self-employed person will be likewise incentivized to deposit the same percentages to Neighbor Bill Account based on Schedule C gross margin, but only to the extent that there is a business net profit.

4. Provide for Management and Expenditure of Health Care Savings - We will employ a special VISA-like debit card to spend from our Neighbor Bill Accounts. This debit card will be spendable exclusively at places that exclusively sell health care services or products. For example, your VISA debit card could be used at a hospital, a doctor’s office, a healthcare-only website, or a healthcare-only counter at a local pharmacy. Using a simple VISA card will free doctors and hospitals of their claims-processing nightmare. Insurance administration costs will fall to near zero.

5. Provide for Control by the Little People - At their owners’ discretion, Neighbor Bill Accounts may be used to pay for one’s own health care expenses – or one’s spouse, or child, or brother, or niece, or mother-in-law, or lover, or significant other, or even for the health care expenses of a neighbor. The only restrictions will be that (1) funds may only be used for health care, (2) with an important exception I’ll detail below, funds may not be used to pay health insurance premiums, and (3) the owner of the funds may not receive any sort of goods, services, tax deductions, or other kickbacks for paying others’ health care expenses. The reward for such payments is simply not to be in this world.

6. Tax Employer-Provided Health Insurance - Currently, if an employer provides health insurance to employees, the employer is allowed a tax write off for 100% of the insurance cost; and, the employee does not have to include the corresponding amount in his taxable income. This asymmetry is unusual in the tax code and amounts to a special subsidy of employer provided third-party-reimbursement-type health care. This subsidy has created the current, insane societal reliance on employer-provided health insurance. Remove the subsidy. This will gradually free employers of their nightmarish burden of health care costs In the meantime, it will also generate tax revenues.

7 Mandatory Catastrophic Health Care Insurance - Every man, woman, and child in America who has a Neighbor Bill Account must pay for private catastrophic health care insurance. This is the only type of insurance premium that may be paid out of Neighbor Bill Account funds. People with families must have policies that cover their children and non-working spouses. Health care expenses in excess of a high deductible amount will be covered in full by these insurance policies. The annual deductible amount will be $2,000 per person or 5% of the beginning-of-year balance of their Neighbor Bill Account, whichever is higher. The $2,000 amount will be indexed for inflation each year. This universal, mandatory private catastrophic health care insurance will protect the little people from financial wipe-out. The cost to Government will be around zero.

8. Simple Tort Reform - A shockingly large percent of health care services are performed not for clinical expediency but to shelter providers from malpractice trial lawyers. Congress will reform this paradigm by legislating that if you sue anyone in Federal court for malpractice or negligence, and you fail to win on at least one, single point, you will pay half of the defendant’s legal fees and other associated costs. In this way, litigants with slam-dunk-valid claims will be free to pursue them in court, but others will think twice before filing frivolous lawsuits. We, the Clark Kents of America, must force our individual state governments enact that identical rule for state courts.

9. Restrict Employer Write off of Health Insurance Expenses - Currently, certain business expenses are not fully deductible for income taxes. For example, business meals generally are only 50% deductible. In like way, make the employer’s expense for employee health insurance only 50% deductible. This will produce tax revenues and gradually encourage the shift away from employer-provided third-party-payment plans to individually-controlled-and-safeguarded Neighbor Bill Accounts.

10 Abolish the Self Employed Health Insurance Deduction - The Neighbor Bill Account deduction replaces the Self Employed Health Insurance Deduction. The former encourages third-party-payment plans, while the latter is individually controlled.

11. Maintain and Strengthen Medicare-Medicaid - Medicare and Medicaid are in danger of eventual collapse because (1) the population is aging, and (2) they are third-party-payment plans. We can save Medicare and Medicaid with the following just and simple rule: Anyone who has a balance in a Neighbor Bill Account must use those funds before tapping Medicare or Medicaid. This will relieve pressure on Medicare-Medicaid resources, and save the safety nets for those who need them.

12. Establish a commsssion to evaluate existing barriers to the education of physician specialists, and to propose solutions to free medical students to enter the spcialty of their choice.

The Leahy Vision will gently transform our failed health-care financing system dominated by institutional players and third party payers, to a system of individuals and families in control of their own destinies and  empowered by their own resources. The royalty of the health care financing bureaucracy will be de-throned. The future will be free to blossom. Vast sums of money will be set aside for health care and safeguarded by vigilant owners. These sums of health care money with stay with its owners no matter how often they change jobs -- providing complete portability.  It will always be available to cover preexisting conditions.  Catastrophic health insurance will protect us from financial wipe-out. Medicare and Medicaid will protect the poor and the elderly. Most payment processing will be as simple as swiping a VISA card. The little people will spend and save health care resources as they think wise. They will never again be told, like my late neighbor Bill, that treatment they desperately need is not covered by the plan, or can only be obtained by lengthy waiting for complicated appeals. Employers will no longer stagger under the burden of health care costs. Job-creating small employers will get their second wind from a reduction of their income and self-employment taxes. Large employers, over time, will have the crushing burden of employee health care expenses lifted from their shoulders. Medicare and Medicaid will be secured. Doctors and hospitals will be cured of the expensive headache of filing and collecting insurance claims. They will, however, need to produce price estimates and bills that patients can understand and accept.

The future is exciting. It only requires is that you – personally – somehow, in your own way, with your own talents, stop masquerading Clark Kent, get off your haunches and make it happen – starting now, starting today. To Nancy Pelosi, Barack Obama and Hillary Clinton, we must say: YES WE CAN!!!! 


Contact your senator and congressional representatives. Tell them to scrap the current bills. Demand they study the Leahy Health Care Reform Vision.

Raise awareness: Email a link to this article to everyone you know.

Today, please.

JC Leahy

Saturday, December 19, 2009


Hi Everyone!!! Merry Christmas and Happy Holidays!!! Dali and; I went to Tennessee
this past week for our daughter Jessica's nursing school graduation -- which went smoothly. Yeah!! Yesterday, we cut our trip short to try to race back to Maryland ahead of the blizzard. It caught us before we could even get out of Tennessee!!! We traveled 8 miles in 9 hours. Dozens upon dozens of other cars slid off the road into ditches and onto the snowy roadside. Eighteen wheelers one after another came to a stop witout even pulling off the roadway. We finally managed to limp into a (thankfully) large and comportable Marriott convention center at 4am this morning and got the LAST available room. This afternoon, Interstate 81 is closed to the north of us, and according to the news, some motorists have been in their cars for 24 hours. We'll stay here until the roads seem safe -- probably leaving Sunday or
Monday.  When we get back, we'll play catch-up on Christmas preparations. I'm going to make my famous whiskey bread pudding -- which is always well received and fasteaten. :)

Happy Holidays! Stay well, and if you can, stay off the roads during this blizzard.

Yours sincerely,
JC Leahy

Thursday, December 17, 2009

from the mailbox...

I will be making a conscious effort to wish everyone
A Merry Christmas this year ...
My way of saying that I am celebrating
The birth Of Jesus Christ.
So I am asking my email buddies,
If you agree with me,
To please do the same.
And if you'll pass this on to
Your email buddies, and so on...
Maybe we can prevent one more
American tradition from being lost in the sea of
"Political Correctness".


Monday, December 14, 2009


You can support the Journal and simultaneously save money, hassle, gasoline and carbon footprint. Simply do your shopping at and ALWAYS enter through any of the Amazon links on the Journal's website (type or It's that simple! You get easy selection, rock-bottom prices, free shipping and generally no sales taxes. At no cost to you, your whole shopping session will generate a sales referral commission paid to the Journal.

Thank you!
JC Leahy


I ran across this link to a free version of Currency Trading for Dummies. Sounds interesting. I've only scanned my copy, but it looks like a good read, so I'll pass it on to you. Let me know what you think.
The the link was sponsored by -- which, of course, wants to facilitate your international currency trading.
JC Leahy

Sunday, December 13, 2009


AlabamaShelby, Richard C. (R)
Stevens, Ted (R)
Kyl, Jon (R)
McCain, John (R)
Bumpers, Dale (D)
Hutchinson, Tim (D)
Boxer, Barbara (D)
Feinstein, Dianne (D)
Dodd, Christopher J. (D)
Lieberman, Joseph I. (D)

Biden, Joseph R., Jr. (D)
Graham, Bob (D)
Coverdell, Paul (R)
Inouye, Daniel K. (D)
Craig, Larry E. (R)
Kempthorne, Dirk (R)
Moseley-Braun, Carol (D)
Grassley, Chuck (R)
Harkin, Tom (D)
Ford, Wendell H. (D)
McConnell, Mitch (R)
Breaux, John B. (D)
Collins, Susan (R)
Snowe, Olympia J. (R)


Mikulski, Barbara A. (D)

DC Office:
503 Hart Senate Office Building, Washington, DC 20510
Phone: (202)224-4654
FAX: (202-224-8858

Annapolis District Office:
60 West Street, Suite 202, Annapolis, MD 21401-2448
Phone: (410)263-1805 or 410-269-1650
Baltimore District Office:
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Phone: (410)962-4510 or (410)962-4512

Greenbelt District Office:
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Phone: (301)345-5517

Hagerstown District Office:
32 West Washington Street, Room 203, Hagerstown, MD 21740-4804
Phone: (301)797-2826

Cardin, Benjamin L. (D)

DC Office:
500 Hart Senate Office Building
Washington, DC  (202)224-4524

Kennedy, Edward M. (D)
Kerry, John F. (D)
Abraham, Spencer (R)
Levin, Carl (D)
Grams, Rod (R)
Wellstone, Paul D. (D)
Cochran, Thad (R)
Ashcroft, John (R)
Bond, Christopher S. (R)
Baucus, Max (D)
Burns, Conrad R. (R)
Kerrey, J. Robert (D)
Bryan, Richard H. (D)
Reid, Harry (D)
New Hampshire
Gregg, Judd (R)
Smith, Bob (R)
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Lautenberg, Frank R. (D)
New Mexico
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Byrd, Robert C. (D)
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