Health care reform was rushed by Democrats
(Note: Unless otherwise noted, all statistics are for the Senate version of the health care bill.)
Congress finally approved the Democrats’ health care reform bill Sunday and, on Tuesday, President Barack Obama signed it into law.
One of the main arguments used by the Democratic leadership in support of the bill was that it would reduce the deficit and, according to the Congressional Budget Office, it will do so by $132 billion.
When most Americans hear that, they probably think it’s a good thing.
But how many people are asking, “Exactly how they are reducing the deficit?”
There are two main ways the Democrats plan to reduce the deficit while increasing spending: raise taxes and push the cost burden onto the states.
In 2014, people with high-cost employee-sponsored health care plans will see a 40 percent excise tax placed on their health care plans.
So employers who want and can afford to provide their employees with better health care plans will be punished for doing so, meaning that most will probably push for a less expensive health care plan that will not see a tax of 40 percent.
There will be a new 10 percent tax on indoor tanning services.
Individuals making more than $200,000 (or families more than $250,000) will see a 0.9 percent increase in their Medicare taxes.
Health care companies also would be subject to a variety of fees.
A 3.8 percent tax increase could be placed on capital gains, a move that could hurt an already unstable stock market.
In addition to cutting an expected $500 billion out of Medicare growth over the next 10 years, an additional $116 billion will be cut from Medicare Part C.
The bill will push an additional 16 million people onto the Medicaid program.
This is perhaps one of the worst provisions in the bill from an economic standpoint.
While the federal government does cover some of the funding for Medicaid, states cover the costs.
An increase in funding needed to pay for Medicaid could be a disaster for states already suffering financially, including Michigan.
If our state cannot pass a balanced budget on time right now, how do the Democrats expect us to be able to pass a balanced budget after they require us to pump more money into our Medicaid program?
Ensuring more people get health care is a good thing but, if the federal government bankrupts states in the process of achieving increased coverage, that does much more harm than good.
The Democrats rushed through this process instead of taking their time to craft a good bill, and the American people are going to realize this.
