Post by Abracadabra on Apr 4, 2010 8:43:18 GMT -5
New Spending Grows the Federal Deficit....
The authors of this legislation took advantage by crafting the language of the bill, employing several budgetary gimmicks to make it appear cheaper. This is the reason for the CBO's projected cost for the health care package at $940 billion from 2010 to 2019.
These include omitting cuts to Medicare provider payment rates, known as the “doc fix,” double-counting savings from Medicare and the CLASS Act, indexing benefits to general inflation rather than medical inflation, and delaying the expensive provisions of the bill. When these costs are accounted for, the new law is more likely to cost closer to $2.5 trillion.
Bending the Cost Curve in the Wrong Direction …..
Instead of reducing spending in health care, the bill will increase overall health spending in the U.S. by $222 billion between now and 2019. In addition, CBO reports that premiums in the non-group market will increase by 10–13 percent as a result of the bill.
New Taxes and Mandates Hinder Economic Growth ….
The new law requires employers who do not offer insurance deemed adequate by the federal government to pay a fine of $2,000 for every employee, exempting the first 30 employees. Employers forced to pay this penalty will have to reduce wages, cut jobs, or rely more heavily on part-time workers. Any of these options will be bad for the economy.
Burdening State Budgets....
The reconciliation bill ensures that the federal government will cover the expansion of Medicaid benefits in all 50 states until 2017. Federal matching rates will decrease from 100 percent in 2017 to 93 percent in 2019, resting permanently there. The 100 percent federal match rate does not include administrative costs which will cost the states $9.6 billion between 2014 and 2019.
Neglecting Medicare …..
Medicare is due to become insolvent in 2016, and long-term unfunded liabilities exceed $38 trillion.
Congress' “fix” was to create savings in Medicare of more than half a trillion dollars in cuts to the program. These savings—assuming they ever occur—will be used not to extend the solvency of the Medicare program but to fund the new entitlement programs that are now law.
Creates Discrimination Against Low Income Workers …..
The employer mandate requires employers to offer a federally defined level of insurance or pay a fine. Even if an employer does offer insurance but their low-income employees qualify and elect to enter the health exchange instead, the employer will pay a $3,000 penalty for each employee who makes this choice. This is in addition to the cost of offering insurance. This creates an incentive for employers to avoid hiring workers from low-income families, hurting those who need jobs the most.
Questions of Constitutionality....
The new law requires all Americans to purchase health insurance or pay a penalty. This represents an unprecedented extension of congressional power—never before has the federal government required Americans to purchase a good or service as a stipulation of being a lawful citizen.
The authors of this legislation took advantage by crafting the language of the bill, employing several budgetary gimmicks to make it appear cheaper. This is the reason for the CBO's projected cost for the health care package at $940 billion from 2010 to 2019.
These include omitting cuts to Medicare provider payment rates, known as the “doc fix,” double-counting savings from Medicare and the CLASS Act, indexing benefits to general inflation rather than medical inflation, and delaying the expensive provisions of the bill. When these costs are accounted for, the new law is more likely to cost closer to $2.5 trillion.
Bending the Cost Curve in the Wrong Direction …..
Instead of reducing spending in health care, the bill will increase overall health spending in the U.S. by $222 billion between now and 2019. In addition, CBO reports that premiums in the non-group market will increase by 10–13 percent as a result of the bill.
New Taxes and Mandates Hinder Economic Growth ….
The new law requires employers who do not offer insurance deemed adequate by the federal government to pay a fine of $2,000 for every employee, exempting the first 30 employees. Employers forced to pay this penalty will have to reduce wages, cut jobs, or rely more heavily on part-time workers. Any of these options will be bad for the economy.
Burdening State Budgets....
The reconciliation bill ensures that the federal government will cover the expansion of Medicaid benefits in all 50 states until 2017. Federal matching rates will decrease from 100 percent in 2017 to 93 percent in 2019, resting permanently there. The 100 percent federal match rate does not include administrative costs which will cost the states $9.6 billion between 2014 and 2019.
Neglecting Medicare …..
Medicare is due to become insolvent in 2016, and long-term unfunded liabilities exceed $38 trillion.
Congress' “fix” was to create savings in Medicare of more than half a trillion dollars in cuts to the program. These savings—assuming they ever occur—will be used not to extend the solvency of the Medicare program but to fund the new entitlement programs that are now law.
Creates Discrimination Against Low Income Workers …..
The employer mandate requires employers to offer a federally defined level of insurance or pay a fine. Even if an employer does offer insurance but their low-income employees qualify and elect to enter the health exchange instead, the employer will pay a $3,000 penalty for each employee who makes this choice. This is in addition to the cost of offering insurance. This creates an incentive for employers to avoid hiring workers from low-income families, hurting those who need jobs the most.
Questions of Constitutionality....
The new law requires all Americans to purchase health insurance or pay a penalty. This represents an unprecedented extension of congressional power—never before has the federal government required Americans to purchase a good or service as a stipulation of being a lawful citizen.