This is my Sunday column …
Three days of political hyperactivity, filled with breathless
analysis and partisan hyperbole, have passed since the Supreme Court’s
landmark ruling on health care reform, so it’s a good time to take a
deep breath, slice through all the misinformation, and explain the basic
facts.
analysis and partisan hyperbole, have passed since the Supreme Court’s
landmark ruling on health care reform, so it’s a good time to take a
deep breath, slice through all the misinformation, and explain the basic
facts.
We all know of the Obamacare benefits that have already
arrived for millions of Michiganders related to pre-existing conditions,
annual coverage limits, senior citizen drug discounts, family insurance
for those under 26 years old, and rebates for policyholders who suffer
from excessive overhead costs by insurers. Going forward, for Middle
America, places like Macomb County, the future of health care provides a
new level of security and fairness.
arrived for millions of Michiganders related to pre-existing conditions,
annual coverage limits, senior citizen drug discounts, family insurance
for those under 26 years old, and rebates for policyholders who suffer
from excessive overhead costs by insurers. Going forward, for Middle
America, places like Macomb County, the future of health care provides a
new level of security and fairness.
First, it’s important to
remember that we already have a national health care system, in a
dysfunctional sort of way. Everyone gets health care, but only some of
us pay for it. The freeloaders who choose to act irresponsibly and shun
the protections of health insurance know that they can receive care at
any time at a hospital ER and the government, by law, must pay for it.
remember that we already have a national health care system, in a
dysfunctional sort of way. Everyone gets health care, but only some of
us pay for it. The freeloaders who choose to act irresponsibly and shun
the protections of health insurance know that they can receive care at
any time at a hospital ER and the government, by law, must pay for it.
Next,
we have the working poor and the unemployed and part-timers and workers
whose employers don’t offer health care. They are currently left to
fend for themselves, often avoiding care until a chronic, expensive
ailment arises.
we have the working poor and the unemployed and part-timers and workers
whose employers don’t offer health care. They are currently left to
fend for themselves, often avoiding care until a chronic, expensive
ailment arises.
Then, we have the widely misunderstood fact that
the Affordable Care Act was principally designed to provide coverage for
the uninsured. Most Americans – the 85 percent who have insurance –
will feel virtually no effects at all, except in a positive sense. It’s
particularly disturbing that some of Macomb County’s health care
professionals have an extraordinarily inaccurate view of the reforms.
the Affordable Care Act was principally designed to provide coverage for
the uninsured. Most Americans – the 85 percent who have insurance –
will feel virtually no effects at all, except in a positive sense. It’s
particularly disturbing that some of Macomb County’s health care
professionals have an extraordinarily inaccurate view of the reforms.
What’s
more, the centerpiece of the law is a market-driven approach to
providing insurance for the uninsured and the self-insured. Federal tax
credits provide the driving force of the “exchanges” – online
marketplaces where numerous private insurers will sell their wares.
more, the centerpiece of the law is a market-driven approach to
providing insurance for the uninsured and the self-insured. Federal tax
credits provide the driving force of the “exchanges” – online
marketplaces where numerous private insurers will sell their wares.
It’s
based on the online shopping system used to insure all federal workers –
from senators to janitors – and you can find it at opm.gov. Click on
“how do I find a plan,” stick with the health insurance information,
click on “plan comparison tool” and then present yourself as a
hypothetical federal employee.
based on the online shopping system used to insure all federal workers –
from senators to janitors – and you can find it at opm.gov. Click on
“how do I find a plan,” stick with the health insurance information,
click on “plan comparison tool” and then present yourself as a
hypothetical federal employee.
As Gov. Rick Snyder has said, the
marketplace exchanges under Obamacare will be similar to the online
comparables for travelers offered by Travelocity.com. Under the state
exchanges, each company will offer four levels of insurance, with prices
that match the amount of coverage.
marketplace exchanges under Obamacare will be similar to the online
comparables for travelers offered by Travelocity.com. Under the state
exchanges, each company will offer four levels of insurance, with prices
that match the amount of coverage.
Finally, it’s essential to
understand that the health insurance industry is not at all a free
market. Someone who steps off the curb and is hit by a truck does not
make decisions in the ambulance on which hospital he wants the
paramedics to take him. Someone who is told they quickly need a battery
of tests to determine if they have cancer does not shop around for the
cheapest specialists. And the typical American receives insurance
through their employer – meaning they have no say whatsoever, unless
they have a union, regarding their level of coverage and how many
out-of-pocket costs they face.
understand that the health insurance industry is not at all a free
market. Someone who steps off the curb and is hit by a truck does not
make decisions in the ambulance on which hospital he wants the
paramedics to take him. Someone who is told they quickly need a battery
of tests to determine if they have cancer does not shop around for the
cheapest specialists. And the typical American receives insurance
through their employer – meaning they have no say whatsoever, unless
they have a union, regarding their level of coverage and how many
out-of-pocket costs they face.
As for taxes, the fact-checkers
have been working overtime since the court decision to knock down all
the nonsensical claims about a new Obamacare tax burden for Americans.
The Supreme Court ruled that the “fee” for those who refuse to purchase
insurance is really a tax – essentially an effort by Supreme Court Chief
Justice John Roberts to stare down Congress and call them out on a
ridiculous label.
have been working overtime since the court decision to knock down all
the nonsensical claims about a new Obamacare tax burden for Americans.
The Supreme Court ruled that the “fee” for those who refuse to purchase
insurance is really a tax – essentially an effort by Supreme Court Chief
Justice John Roberts to stare down Congress and call them out on a
ridiculous label.
As a result, critics have said that the middle
class will suffer a big tax hike. Some have called it the biggest tax
hike in U.S. history. One blowhard on talk-radio absurdly claimed that
it was the biggest tax increase in the history of the world.
class will suffer a big tax hike. Some have called it the biggest tax
hike in U.S. history. One blowhard on talk-radio absurdly claimed that
it was the biggest tax increase in the history of the world.
The
truth is that the freeloaders’ tax, which will largely be imposed on
those twentysomethings who think they are invincible and have no need
for insurance, will cost $95 a year, starting in 2014. From there, the
tax on individuals rises to $325 in 2015 and $695 in 2016. If anything,
compared to the cost of taxpayer-funded care provided by hospital ERs,
this penalty is too low.
truth is that the freeloaders’ tax, which will largely be imposed on
those twentysomethings who think they are invincible and have no need
for insurance, will cost $95 a year, starting in 2014. From there, the
tax on individuals rises to $325 in 2015 and $695 in 2016. If anything,
compared to the cost of taxpayer-funded care provided by hospital ERs,
this penalty is too low.
In addition, this tax will be paid by
only about 2 percent of the population and it will raise a relatively
meaningless $13 billion in the first year and $65 billion over 10 years.
To put that into perspective, if Mitt Romney is elected and
successfully achieves his record $5 trillion tax reduction plan, the
freeloaders’ tax levied on the very few would reduce that overall cut by
about 1 percent.
only about 2 percent of the population and it will raise a relatively
meaningless $13 billion in the first year and $65 billion over 10 years.
To put that into perspective, if Mitt Romney is elected and
successfully achieves his record $5 trillion tax reduction plan, the
freeloaders’ tax levied on the very few would reduce that overall cut by
about 1 percent.
Beyond the tax penalty on those who decline to
participate, the nonpartisan Tax Policy Center found that the two main
taxes in the health care law – a Medicare payroll tax increase and a
jump in taxes on substantial investment income – will be paid almost
entirely by the wealthy. The top 0.1 percent of income earners — those
earning more than $2.6 million a year — will foot nearly the entire
bill and yet their average federal tax rate will rise by just 1.6
percentage points.
participate, the nonpartisan Tax Policy Center found that the two main
taxes in the health care law – a Medicare payroll tax increase and a
jump in taxes on substantial investment income – will be paid almost
entirely by the wealthy. The top 0.1 percent of income earners — those
earning more than $2.6 million a year — will foot nearly the entire
bill and yet their average federal tax rate will rise by just 1.6
percentage points.
Sure, there are taxes on tanning booths. The
law also provides for new taxes on insurance companies, big drug
companies and manufacturers of medical devices. But that’s because these
three pieces of the private sector will enjoy a huge windfall in
revenues due to a government policy that adds more than 30 million
people to the health care market.
law also provides for new taxes on insurance companies, big drug
companies and manufacturers of medical devices. But that’s because these
three pieces of the private sector will enjoy a huge windfall in
revenues due to a government policy that adds more than 30 million
people to the health care market.
The bottom line: The middle
class will pay virtually no new taxes, directly or indirectly, for a
much improved health care system.
class will pay virtually no new taxes, directly or indirectly, for a
much improved health care system.
With regard to benefits, the new
law’s Medicaid expansion will cover a family of four earning up to
$24,000 a year. Medicaid coverage is just a step above mediocre and many
doctors don’t accept Medicaid patients, so that portion of the law is
problematic. The other contingent of uninsured will rely upon the
exchanges, with tax cuts allowing a family of four with a $50,000 income
to pay just $4,000 for a decent insurance policy.
law’s Medicaid expansion will cover a family of four earning up to
$24,000 a year. Medicaid coverage is just a step above mediocre and many
doctors don’t accept Medicaid patients, so that portion of the law is
problematic. The other contingent of uninsured will rely upon the
exchanges, with tax cuts allowing a family of four with a $50,000 income
to pay just $4,000 for a decent insurance policy.
Businesses with
more than 50 employees and no benefits are offered a 35 percent federal
tax credit (50 percent starting in 2014) for the cost of employee
health care. Those who refuse will pay a penalty of up to $2,000 per
employee, which some employers may consider a bargain. Their workers
will be sent to the exchange, which many employees will consider a
blessing.
more than 50 employees and no benefits are offered a 35 percent federal
tax credit (50 percent starting in 2014) for the cost of employee
health care. Those who refuse will pay a penalty of up to $2,000 per
employee, which some employers may consider a bargain. Their workers
will be sent to the exchange, which many employees will consider a
blessing.
Take a step back and it’s clear the Affordable Care Act
is an attempt to repair an ailing system. Let’s give it some time before
we conclude whether it’s the right medicine to cure our ills.
is an attempt to repair an ailing system. Let’s give it some time before
we conclude whether it’s the right medicine to cure our ills.
