Commentary Magazine


Topic: health insurance industry

The Latest Same ObamaCare Bill

Obama has put forth another version of ObamaCare, but it’s not even sufficient to be scored by the CBO. The CBO website explains:

This morning the Obama Administration released a description of its health care proposal, and CBO has already received several requests to provide a cost estimate for that proposal. We had not previously received the proposal, and we have just begun the process of reviewing it—a process that will take some time, given the complexity of the issues involved. Although the proposal reflects many elements that were included in the health care bills passed by the House and the Senate last year, it modifies many of those elements and also includes new ones. Moreover, preparing a cost estimate requires very detailed specifications of numerous provisions, and the materials that were released this morning do not provide sufficient detail on all of the provisions. Therefore, CBO cannot provide a cost estimate for the proposal without additional detail, and, even if such detail were provided, analyzing the proposal would be a time-consuming process that could not be completed this week.

We do have some idea what’s in it, however. Matt Continetti explains: “Obama’s new, improved plan is more expensive than the Senate bill, does not address the concerns of pro-life House Democrats over the Senate’s abortion language, maintains the tax exemption for the Democrats’ union friends, and will effectively turn insurance companies into heavily regulated public utilities.”

What we do know is that under ObamaCare’s latest incarnation, you really don’t get to keep your existing health-care plan. And we know that it seeks to federalize the regulation of the health-insurance industry. (“The big new idea in the president’s plan is to federalize regulation of health insurance, creating a Health Insurance Rate Authority to conduct ‘reviews of unreasonable rate increases and other unfair practices of insurance plans.’ This reflects the overall strategy to give more and more control over the health sector to Washington.”) And it seems that there are $136B worth of new taxes to be imposed on the people Obama said he’d never tax, namely those families making less than $250,000.

What we don’t know is why anyone who opposed the last version(s) of ObamaCare would accept this one. It is still a mammoth tax-and-spend bill and still seeks to federalize health care. If Nancy Pelosi has 218 votes for this, I’d be surprised. If Senate Democrats want to walk the plank for a retread of the bill that voters in Massachusetts sent Scott Brown to the Senate to oppose, I’d be surprised. But I suppose we’ll find out.

Obama has put forth another version of ObamaCare, but it’s not even sufficient to be scored by the CBO. The CBO website explains:

This morning the Obama Administration released a description of its health care proposal, and CBO has already received several requests to provide a cost estimate for that proposal. We had not previously received the proposal, and we have just begun the process of reviewing it—a process that will take some time, given the complexity of the issues involved. Although the proposal reflects many elements that were included in the health care bills passed by the House and the Senate last year, it modifies many of those elements and also includes new ones. Moreover, preparing a cost estimate requires very detailed specifications of numerous provisions, and the materials that were released this morning do not provide sufficient detail on all of the provisions. Therefore, CBO cannot provide a cost estimate for the proposal without additional detail, and, even if such detail were provided, analyzing the proposal would be a time-consuming process that could not be completed this week.

We do have some idea what’s in it, however. Matt Continetti explains: “Obama’s new, improved plan is more expensive than the Senate bill, does not address the concerns of pro-life House Democrats over the Senate’s abortion language, maintains the tax exemption for the Democrats’ union friends, and will effectively turn insurance companies into heavily regulated public utilities.”

What we do know is that under ObamaCare’s latest incarnation, you really don’t get to keep your existing health-care plan. And we know that it seeks to federalize the regulation of the health-insurance industry. (“The big new idea in the president’s plan is to federalize regulation of health insurance, creating a Health Insurance Rate Authority to conduct ‘reviews of unreasonable rate increases and other unfair practices of insurance plans.’ This reflects the overall strategy to give more and more control over the health sector to Washington.”) And it seems that there are $136B worth of new taxes to be imposed on the people Obama said he’d never tax, namely those families making less than $250,000.

What we don’t know is why anyone who opposed the last version(s) of ObamaCare would accept this one. It is still a mammoth tax-and-spend bill and still seeks to federalize health care. If Nancy Pelosi has 218 votes for this, I’d be surprised. If Senate Democrats want to walk the plank for a retread of the bill that voters in Massachusetts sent Scott Brown to the Senate to oppose, I’d be surprised. But I suppose we’ll find out.

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Taxing Our Patience

The Hill, reminding us that certain senators have promised not to raise taxes, explains just how many taxes there are in the pending health-care bill:

Individuals would face penalties for failing to purchase insurance and those earning more than $200,000 would see their Medicare payroll tax rise from 1.45 percent to 1.95 percent. The payroll tax rise would hit couples earning $250,000 or more.

The measure would also impose a $2 billion annual tax on medical devices such as pacemakers; a broad $6.7 billion annual tax on the health insurance industry; a 5 percent tax on cosmetic surgery; and would eliminate tax deductions for employer-provided prescription drug coverage in retirement.

An analysis by the Joint Committee on Taxation found that in the year 2019, 77 percent of the cost of the tax increases proposed in the Senate Finance Committee’s healthcare bill would be carried by families earning less than $250,000 a year.

There is a total of $494B by some estimation. And, of course, this flies in the face of Obama’s pledge not to raise taxes on those making less than $250,000. Specifically, labor unions aren’t very happy about the tax on so-called Cadillac health-care plans (which were in many collective-bargaining negotiations provided in lieu of higher wages or other benefits): “Labor unions have opposed this tax, which funds a substantial portion of the bill, because they argue that it would hit many unionized, working-class families.”

All this would be bad enough in ordinary times but we are, after all, not yet out of the recession. Can anyone really imagine that hundreds of billions in new taxes are going to help matters? We are continually told that taxes are receding as a top issue. The way to test that proposition is to vote for massive tax hikes, in violation of a specific campaign pledge in the middle of an economic downturn. How many lawmakers will have the nerve to find out?

The Hill, reminding us that certain senators have promised not to raise taxes, explains just how many taxes there are in the pending health-care bill:

Individuals would face penalties for failing to purchase insurance and those earning more than $200,000 would see their Medicare payroll tax rise from 1.45 percent to 1.95 percent. The payroll tax rise would hit couples earning $250,000 or more.

The measure would also impose a $2 billion annual tax on medical devices such as pacemakers; a broad $6.7 billion annual tax on the health insurance industry; a 5 percent tax on cosmetic surgery; and would eliminate tax deductions for employer-provided prescription drug coverage in retirement.

An analysis by the Joint Committee on Taxation found that in the year 2019, 77 percent of the cost of the tax increases proposed in the Senate Finance Committee’s healthcare bill would be carried by families earning less than $250,000 a year.

There is a total of $494B by some estimation. And, of course, this flies in the face of Obama’s pledge not to raise taxes on those making less than $250,000. Specifically, labor unions aren’t very happy about the tax on so-called Cadillac health-care plans (which were in many collective-bargaining negotiations provided in lieu of higher wages or other benefits): “Labor unions have opposed this tax, which funds a substantial portion of the bill, because they argue that it would hit many unionized, working-class families.”

All this would be bad enough in ordinary times but we are, after all, not yet out of the recession. Can anyone really imagine that hundreds of billions in new taxes are going to help matters? We are continually told that taxes are receding as a top issue. The way to test that proposition is to vote for massive tax hikes, in violation of a specific campaign pledge in the middle of an economic downturn. How many lawmakers will have the nerve to find out?

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