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Expect buyer’s remorse from health-care ‘reform’

By BOB LATTA -  OVER the past year, Congress has conducted an extensive debate on health care. No one will argue that we do not need real reform, and I was proud to support meaningful alternatives that unfortunately never received hearings or discussion in the House.
I believe the legislative process used to pass the health-care “reform” package was flawed. Now that President Obama has signed it into law, it is time to review what lies ahead for our nation’s health-care system.The package’s total estimated cost of $2.3 trillion includes more than $500 billion in tax hikes and fees. Most of these hikes will come in the form of increases in payroll and unearned-income taxes.

These tax increases, levied during one of the most trying times in history for our nation’s economy, will delay our recovery and slow long-term growth. Over the next seven years, Americans also will see indirect taxes on medical devices, pharmaceuticals, and other elements of their individual health insurance plans.The new law mandates that employers provide health insurance to their workers, pay a penalty for not offering insurance that the government deems sufficient, or both. Small businesses will be especially hard hit.
The law calls for businesses with fewer than 25 employees to get a credit for providing health insurance. But keep in mind that the “full” credit for businesses with 10 employees or fewer is just 50 percent of their total costs.
The nonpartisan Congressional Budget Office estimates that only 12 percent of small businesses nationwide will get the full or partial credit. And it will be eliminated in 2016, just two years after the law takes full effect. That will leave small businesses worse off than they were before the law was enacted.
Failure to comply with the rules written to enforce the health-care law will result in civil or criminal penalties against individuals and employers, enforced by the Internal Revenue Service. The CBO predicts that costs associated with the employer mandate will be shifted directly to workers, in lower wages and reduced or eliminated jobs and hours.
Senior citizens will see direct and devastating effects from the new law, which includes $529 billion in cuts to Medicare. These cuts will finance an expansion of Medicaid and a new, federally funded entitlement program – robbing Peter to pay Paul.

This entry was posted on Monday, May 31st, 2010 at 5:39 am and is filed under Health Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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