Health Care Reform Law Update:
The United States currently spends twice as much on health care per person than other industrialized nations, yet we are not twice as healthy.
Despite being marketed as a health care reform bill, the legislation that was signed into law expands the size and scope of the federal government, while failing to deliver on the promise to lower health care costs. Unfortunately, it will actually increase costs for many Americans, both in terms of higher insurance premiums and in higher taxes.
The sad reason for these escalating health costs falls on the overweight, obese and morbidly obese in the US which is now close to 45% of the general population. The overweight population is responsible for the high percentage of doctor and hospital visits along with prescription medicine needs in the US.
The overweight have higher cases of high blood pressure, diabetes, and a variety of other overweight caused diseases. So the overweight is one of the top and prime reasons for why the health care costs are running up for everyone. Most of the overweight are not concerned with their condition or the costs that we all have to bear according to health officials. As a result – enter the new health law.
Specifically, analysis released by the Centers for Medicare and Medicaid Services (CMS) Office of the Actuary, the official government actuary for the Medicare program, confirms that the new health reform law fails to reduce health care costs. In fact, the Actuary’s analysis finds that this new law will increase national health spending by $311 billion over the next decade. Equally concerning, the latest analysis warns that the Medicare cuts in the new law could jeopardize seniors’ access to care.
Ultimately, hard-working Americans who are already struggling in this difficult economy are going to bear the brunt of new taxes, fees and penalties. With each day that goes by, it becomes clearer that we should repeal this bill and replace it with meaningful health reform that will actually reduce the cost of health care.
The President’s New Health Care Law
• Increases government spending by trillions. When fully implemented, this new law will increase federal government spending by $2.6 trillion, just over 10 years. .
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• Increases the costs of health care. This law fails to deliver on the promise to lower health care costs. In fact, the Actuary of the Medicare program has stated in a letter that national health spending will increase by $311 billion over 10 years. For a person who buys a new insurance policy in the nongroup market, this means their average premium would be 10 to 13 percent higher in 2016 than if we had done nothing. This is an average premium increase of $2,100 for a family policy in the individual market. Americans did not want reform that makes their premiums even more expensive. To read a report issued by the Congressional Budget Office (CBO) on the increase in premiums.
• Massive expansion of government health care. The new law includes a massive expansion in the government’s health care program for the low-income (Medicaid). Rather than making health insurance more affordable so that Americans could choose a policy that best meets their health care needs, 16 million more Americans will instead be forced into a government-run health care program in which 40 percent of physicians restrict access to patients.
• If you like what you have, you CAN’T keep it. About 14 million people will lose the health insurance they get through their job, resulting in more Americans enrolling into Medicaid. In addition, the new law will cut a total of nearly $145 billion from Medicare Advantage plans – popular insurance plans that deliver a range of health care options to millions of seniors. This law also places new restrictions on Health Savings Accounts (HSAs), Medical Savings Accounts, Flexible Spending Arrangements (FSAs), and Health Reimbursement Arrangements (HRAs). The law’s new restrictions and tax increases will dramatically change for the worse the coverage and benefits millions of Americans currently enjoy.
• New penalties and fees. This new law includes an unconstitutional mandate that requires most Americans to obtain health insurance or be charged a fine simply for not being insured. This fine could be the greater of $695 or 2.5% of your household income in the coming years.
• Taking money from Medicare and seniors’ health care to create new government programs. This law cuts more than half a trillion dollars from Medicare beneficiaries in order to pay for the creation of new government programs. This includes cuts to hospitals, Medicare Advantage, home health, nursing homes, and hospice care. According to the Medicare Actuary, about “15 percent of Part A providers would become unprofitable within the 10-year projection period” because of the health care law. The Actuary also found that the new law may result in doctors terminating their participation in Medicare entirely, “possibly jeopardizing access to care for Medicare beneficiaries.”
• New taxes on life-saving medical devices and drugs. These new taxes on life-saving medical devices and drugs make health care more expensive for patients and could stifle medical innovation. The Medicare Actuary found that this tax “would generally be passed through to health consumers in the form of higher drug and device prices and higher insurance premiums.”
• Job-killing tax. This health reform law imposes a new tax on jobs by forcing employers who do not provide “acceptable” coverage to pay a penalty tax of up to $2,000 per worker. The Congressional Budget Office confirmed that such taxes “could reduce the hiring of low-wage workers.”
According to the Medicare Actuary, businesses will pay $87 billion in new penalties between 2014 and 2019. These new penalties will fall on the backs of hard-working Americans who are already facing great financial challenges in a struggling economy. With unemployment at such high levels and with so few jobs available, the last thing our government should be doing is imposing new taxes that will actually kill jobs and make our “jobless recovery” even worse.
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