3 myths about ObamaCare, the Baucus bill and healthcare reform

October 16, 2009

I just wanted to highlight some items from a previous post on healthcare reform:

1) It costs $829 billion.

It accomplishes this financial feat, however, through budgetary trickery. The plan includes a start year of 2010, even though no money is spent that year and just $14 billion through 2013. Cost the plan out from 2011 through 2020 and it suddenly morphs into a trillion-dollar plan. Indeed, the average annual cost from 2015 through 2019 is $150 billion a year

2) It will cut entitlement spending.

The CBO projects $81 billion in savings over the first decade and then “the added revenues and cost savings are projected to grow more rapidly than the cost of the coverage expansion.”

Great news. But those savings will materialize only if Congress actually cuts a projected $400 billion in government healthcare spending — including Medicare reimbursements to hospitals, doctors and other providers –  over 10 years.

Skepticism here is warranted. Previous congressional promises to cut reimbursements haven’t panned out. And Senator Debbie Stabenow, a Michigan Democrat, has just introduced a bill that would actually increase Medicare fees to doctors by $247 billion over the next decade  That $247 billion should, by all rights, be added to the cost of the Baucus bill. (Interestingly, if Congress actually stuck to the cuts, the tax increases would not be necessary, according to the Tax Foundation.)

3) It only raises taxes on companies.

Then there are the hidden fees. The Baucus bill imposes a $200 billion excise tax on expensive insurance plans. That’s a cost insurers will certainly pass onto consumers, nearly 90 percent of whom would make under $200,000, according to the Joint Committee on Taxation.  That kind of sounds like a stealth middle-class tax increase.

And you can be sure few taxpayers understand that a catch accompanies new government subsidies to cover the cost of private insurance. Those subsidies phase out as incomes rise. The result is a huge effective tax increase. As the CBO puts it: “Marginal tax rates would go up by about 22 percentage points for all families whose income was between 100 percent and 400 percent of the poverty level.”

6 comments

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but it will bring in lotsa money from people like me who drop insurance they currently have because of the evil govt trying to force insurance down our throats but… I am seriously thinking of not filing taxes in the future in protest so maybe that will increase the costs.

Posted by mogwai | Report as abusive

JOHN KING: Senator Stabenow, would you vote to repeal the Defense of Marriage Act? Wishy-washy debbie….
SEN. STABENOW: Well, first I think we need to start with making sure that there is domestic partners benefits for everyone involved in relationships. The hate crimes bill, as Sen. Casey just said, is about ready to go to the President’s desk. And I also think we shouldn’t be losing the great talent of anyone in the military, whether it’s because of skin color, or because they’re a man or a woman or sexual orientation, so I think the President is putting the priorities in the right place.

JOHN KING: Why is this so hard? If I asked you “Would you vote for a public option in health care?” you would say “Yes.” If I asked you if you would vote to help out the auto workers in your state you would say “Yes.” I asked you if you would vote to repeal the Defense of Marriage Act and you didn’t answer the question. Why is it so hard?

SEN. STABENOW: The challenge for me is that we have had on the ballot and there has been passage in Michigan of a law prohibiting, uh, gay marriage. So I think for a number of us that becomes a challenge in terms of what has happened in terms of voting in our states. Now, I am a cosponsor of the hate crimes bill, and support eliminating the policies that discriminate among talented people in our military. I support making sure that there are legal protections for everyone. But I think the patchwork of state policies, now, make it difficult and we all have to take another look.
So there you have it folks, keeping her cards turned down and going with the flow so that come 2010 she can amaze us again! Just keep voting for her and be surprised? One million jobs lost in Michigan under her watch!Now that’s suprising!

Posted by wakeupamerica | Report as abusive

[...] 3 myths about ObamaCare, the Baucus bill and healthcare reform [...]

No government program in the history of the world, and especially in the U.S., has ever come in on budget. Medicare is somewhere north of 800% of original forecasts. The idea that this will only be $800 B or so, never have cuts and only tax a certain group, is total fantasy of the left.

National health care is the typical left social program. Trying to “feel” good about themselves with programs paid by “free money” from the government. The true disgrace is our educational system continues to create useful idios with a total lack of economic education.

Posted by pnkearns | Report as abusive

There is not a proposed 247B $ increase in physician reimbursement on the table. They are discussing not enforcing a cut that would cost doctors 247B $ of Medicare money. THere is a big difference between the two.

Posted by Al S. | Report as abusive

The particpants in the health care transaction(pharmaceuticals companies,insurers and hospitals) have already put 400 billion into the pot..As President Obama stated in his last speech,he will comeback again if the costs of covering the uninsured is not met..He will come back..Insurers and the drug companies will give back more since they will have deeper pockets..The hospitals will either close,merge or become something else which was the primary reason for reform..

Posted by notmd | Report as abusive

3 myths. Here’s the deal. How far are the dumbascraps ready to go. Harry Reid speaks of the nuclear option. What’s next illegal alien 30 million amnesty and union workers with lower wages since there will be 30 million newly legal citizens competing for their jobs. All this talk about the nuclear option…just let reid do it. He’s already gonna be out of office in 2010. Watch Corzine go by by. Obama’s approval is 47% in rasmussment. Facts are if the dumbascraps are willing to destroy america like that then they who can support that garbage. Hey hispanic and white women come back home to the republican party. the black mentality will only take you to the poor house.

Posted by Sarah | Report as abusive

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