Super Wealthy Get Subsidized Government Insurance

We all know about the housing subsidies of mortgage deduction breaks, a $70 billion tax break that is an expensive subsidy for wealthy Americans. However, there are many other breaks for the rich that ordinary Americans can’t get but subsidize.

Since 1968, the federal government has provided subsidized insurance for homeowners who live in flood-prone areas. The program is known as the National Flood Insurance Program (NFIP). It was created after a Department of Housing and Urban Development study in 1968 recommended the federal government provide flood insurance, arguing that a government insurance program could better balance mitigation and economic development goals in flood plains than the private market. As of 2016, the NFIP has over 5 million policies in force and saves policyholders around $3 billion annually. However, the program is out of control: Last we checked, it was $24 billion in debt, and future costs will be much higher.

A Congressional Budget Office study found the median value of an NFIP-insured home is about twice that of American homes in general. Nearly half of NFIP properties took out the maximum $250,000 in coverage, reflecting the fact that properties near water tend to be more expensive than properties in general.

Wealthier households also tend to receive larger subsidies.

The Health Insurance Scam

Wealthy people may also be eligible for government insurance through the Health Insurance Marketplace. They get brokers to purchase it. Requirements: They live in the United States, must be U.S. citizens or national (or be lawfully present), and not be incarcerated in prison or jail.

There are loopholes with income limits if health insurance costs are very high.

Subsidized insurance is also available for government employees, their families, and dependents.

Wealthy people can even get Medicaid depending on their health issues.

I don’t know what loophole Rand Paul specifically references in the clip, but he believes government insurance should only be available to those of modest means.

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