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THE REVENUE INSURANCE BOONDOGGLE: A TAXPAYER-PAID WINDFALL FOR INDUSTRY
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THE REVENUE INSURANCE BOONDOGGLE: A TAXPAYER-PAID WINDFALL FOR INDUSTRY
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Nine out of ten non-elderly Americans with private health insurance receive it through their employer. 2 People generally understand how job-based coverage works, because it is the most common form of coverage. Employer coverage is subsidized, and nearly all employers pay at least half of the premium. On average, employers pay 83 percent of the cost of single coverage and 73 percent of the cost of family coverage. 3 Therefore, employees have a strong incentive to sign up for employer coverage, regardless of their health or financial status. When nearly everybody in a firm signs up, premiums reflect. | THE REVENUE INSURANCE BOONDOGGLE A TAXPAYER-PAID WINDFALL FOR INDUSTRY by Bruce Babcock Professor of Economics Iowa State University Preface by Craig Cox Senior VP for Agriculture and Natural Resources EWG I Allies of big agribusiness are pushing to trade direct payments for a system that guarantees income - at taxpayers expense - for the richest of corporate agriculture businesses which are already doing far better than most of the U.S. economy. -Environmental Working Group ENVIRONMENTAL WORKING GROUP Table of Contents Preface.3 Full Report.7 Agriculture in the Cross Hairs.7 Crop Insurance Cuts Curbed Windfall Profits.8 Revenue Insurance or Yield Insurance Which Should be Subsidized .11 How Revenue Insurance Works.16 Revenue Insurance as Index Insurance.18 Double Indemnity.21 Reform Options.22 References.25 ENVIRONMENTAL WORKING GROUP www.ewg.org 2 Preface By Craig Cox Senior Vice President for Agriculture and Natural Resources and Nils Bruzelius Executive Editor Environmental Working Group As a Congressional Super Committee presses to meet its Nov. 23 deadline to come up with a deficit reduction proposal powerful farm state legislators and agricultural industry lobbyists have moved to hijack the process of rewriting the federal farm bill and enact a new multi-billion dollar entitlement for the largest most profitable farming operations. Their goal is to have the 12-member committee adopt their scheme drafted entirely behind closed doors while shutting out everyone else with a stake in the outcome - including taxpayers and advocates for healthy food rural revitalization children conservation public health and the environment. The champions of big agriculture are trying to pass off their scheme as budget reform by letting it be known that they are ready at long last to part with the long discredited farm subsidy programs known as direct payments which send out cash even during years of record-high farm income. You don t even have to be a farmer to get a payment. It
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