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The Congressional Budget Office's analysis of the final Senate health care bill indicates it would slap a mandatory annual fee of about $15,000 on middle-class families that earn an annual income greater than 400 percent of the federal poverty level ($88,200 for a family of four) and are not provided with health insurance by their employer.
On Dec. 19, the CBO sent a letter to Senate Majority Leader Harry Reid, D-Nev., analyzing the fiscal impact of the bill the Senate is poised to vote on before Christmas.
The CBO analysis cites five basic facts about the bill that acting together would deal a devastating financial blow to many middle-class families if the bill is enacted and enforced as written.
Originally posted by x2Strongx
What do you think this will do to families such as being consumers or even buying a house. MHO... this will be the final straw.
The bill will significantly increase federal healthcare spending - by about $185 billion in 2019, according to the Congressional Budget Office (CBO). It will involve a substantial increase in taxes - by about $100 billion in 2019. It will compel everyone to buy healthcare, even the young and healthy, which ought to reduce costs.
There are three cross-subsidies in the U.S. healthcare system, which greatly increase its cost. Cross-subsidies increase costs because when Party A makes Party B provide a service without paying for it, the service is generally lousy and the cost high.
The first cross-subsidy is the provision of free emergency care facilities for the indigent. If Congress wants to make hospitals provide these services, it should pay for them. Under the current system (which was sneaked in through the small print of a 1,000-page reconciliation bill in 1986), hospitals have to provide the expensive facilities to everybody, and don't get reimbursed for the deadbeats. Needless to say, loaded with these extra costs, hospitals do what comes easiest - they unload those costs onto the middle class. That's about $80 billion a year in extra healthcare that we pay either directly or through higher insurance premiums.
Second, the same service gets charged at three completely different rates - depending on who's paying for it. The lowest rate is paid by the government through Medicare/Medicaid. This means doctors hate taking Medicare patients, which is tough for senior citizens who need healthcare. The middle rate is paid by insurance companies, who negotiate and get volume discounts. The highest rate - and we're talking here about three or four times the insurance company rate - is paid by the middle class, by folks who lack health insurance and by those who have been denied coverage (such as for a "pre-existing" condition).
[edit on 23-12-2009 by marg6043]