June 19 (Bloomberg) -- House Democrats presented a draft of a broad-based overhaul of the U.S. health-care system that includes a mandate that employers insure their employees or pay a penalty equal to 8 percent of their payroll.
The plan, which also includes a government-run insurance program that would compete against private insurers, would cover at least 95 percent of Americans, Representative Henry Waxman of California, chairman of the House Energy and Commerce Committee, said today at a news conference in Washington. About 46 million Americans lack health insurance coverage.
The Democrats said they expect to regain momentum in a debate that has been slowed by questions over the expense of an initiative that is President Barack Obama’s top domestic priority. U.S. health care costs will rise 9 percent next year, PricewaterhouseCoopers said June 18 in a report. House Democrats said the benefits of the overhaul -- which include curbing those costs -- are worth the price tag that will become clear in coming weeks.
“Is this going to bring down the cost of health care?” said Representative Charles Rangel of New York, chairman of the Ways and Means Committee. “You bet your sweet life."
Its not true, the CBO says it will not and we have the real life example of Massachusetts to guide us on how it actually leads to an increase in costs.
Allegedly they will find 400 billion from cuts from Medicare and Medicaid as well as 600 billion in tax increases. For starters the plan would offer tax credits to help the purchasing of health coverage by individuals and families with incomes up to 400 percent of the poverty level, and expand the Medicaid health system for the poor by making the program available to those with incomes below 133 percent of the poverty level. The tax credits may be the least harmful, but how are they going to cut 400 billion from medicare and Medicaid at the same time as they expand who is eligible? In addition they are pushing a public plan that will be part of the "online exchange " where people could shop around for the best plan. Of course the public plan will end up being designed to destroy private insurers and although Henry Waxmen talked about using a payment schedule above the medicare level, he couldn't even commit to the 10% that had been floated earlier. Of course no word on the coming insolvency of medicare. Democrats are getting nervous and this will not regain the momentum no matter what spin you hear.
To pay for it all, House Democrats are considering everything from taxing soda to raising income taxes on people earning more than $200,000 to imposing a federal sales tax.
On the other side is the House Republican plan, which would focus on trying to help small businesses and self-employed people find private coverage.
The income tax increase they floated was 2 percent, of course Obama promised not to raise taxes in a recession.
Senator Rangel is presenting a fantasy, and quite frankly, the President knows it too. If the President doesnt know it, he is incompetent. Honestly, anyone who says that Healthcare reform will be cost neutral is B.Sing you. Give me a break. Medicare expenditures have been skyrocketing (without adding any more people). Payments to doctors from Medicare have been progressively CUT over the past decade, and are at levels that doctor's are withdrawing from taking care of Medicare patients. As quoted in the above story, healthcare costs swell when healthcare is supplied free of cost, because people then overutilize the system. Of course healthcare is not free of cost. It weighs down on everyone, especially business and higher income people that create jobs. All I can say is if this healthcare reform proceeds as proposed by Mr. Rangel, get ready for a LONG painful decline in this country to oblivion.
ReplyDeleteSigned a Minority Independent voter.