The ad hoc, chaotic Obamacare insurance is about to hit. The entitlement state is creeping in at the same time as the fiscal cliff.
Obamacare consists of a federal exchange and state healthcare exchanges.
Twenty-six states have refused to take part in the state exchanges because no one knows what they entail. It appears that the government will try to be in complete control from DC while the states pay for them. Who wouldn’t love that idea – unfunded mandates from bureaucrats in DC.
The states would have no freedom to innovate. They would be puppets of the federal government exchange.
Louisiana filed a FOIA request to try and find out what the government is up to. No one knows how the federal exchange will work!
The taxes, such as the insane medical device taxes (on every imaginable device, including canes, wheelchairs, everything), will hit before us before many of the services are launched.
The taxes were timed to launch after Obama’s re-election.
It takes 10 years of taxes to pay for six years of services (Obama math).
This year will begin with the unrolling of the 13,000 pages of rules and regulations which our insurance companies are supposed to instantly figure out. The costs of plowing through this morass of a mess and implementing it will bring premiums up for some by 20%, 30%, 50%, and as much as 100%.
The middle class will be hit but the upper class will be hit hardest because this is our new Progressive approach to bringing down successful people and making them pay for the less successful.
- Medicare tax hikes on high-income earners will be levied on both on wages and investment income. It alone will be about $2,500 for some couples making as much as $400,000 a year.
- Individuals making more than $200,000 and joint filers making above $250,000 will have another tax of 0.9 percentage points on wages above those levels, and there will be a 3.8 percent tax on unearned income. There is even a 3.8% real estate tax.
Obamacare is a shared wealth approach to healthcare. The best and worst hospitals will get paid the same. Doctors will get paid by how many people they cure or make better. Hospitals are not allowed to re-admit the elderly within the same month except under extraordinary circumstances or they are fined. Hospitals have already been fined.
Obamacare took $716 billion from Medicare, the new Obamacare piggy bank.
Medicare has not increased payments to doctors and hospitals in ten years. With this hit, payments won’t increase for another ten or never.
The truly sick and aged will not be better off under this system.
The Affordable Care Act pegs Medicare spending to the growth of the economy plus 1% with the crude across-the-board cuts to providers. Once the threshold is reached, the IPAB kicks in. The IPAB, a fifteen member panel in DC, will cut reimbursements to doctors and hospitals, which will indirectly affect services.
IPAB can even tax without going through Congress. The IPAB doesn’t have to be comprised of medical professionals.
How do you think all this will affect care for the elderly who are mandated into Medicare?
Obamacare will have 62 million customers and it is fantastical to think this will go smoothly. The costs will be far worse than we imagined. We will have a doctor shortage.
Now that Justice Roberts decided, along with the liberal members of SCOTUS, that the government can tax 100% of our income, we have little freedom. Without economic freedom, can we say we are free?
Happy New Obamacare Tax Year!
- $23.6 Billion: “Black liquor” tax hike
- $22.2 Billion: Tax on Innovator Drug Companies
- $4.5 Billion: Codification of the “economic substance doctrine”
- $2.7 Billion: Tax on Indoor Tanning Services
- $0.4 Billion: Blue Cross/Blue Shield Tax Hike
- $ Negligible: Excise Tax on Charitable Hospitals
- $1.4 Billion: HSA Withdrawal Tax Hike
- $ Negligible: Employer Reporting of Insurance on W-2
- $123 Billion: Surtax on Investment Income
- $86 Billion: Hike in Medicare Payroll Tax
- $20 Billion: Tax on Medical Device Manufacturers
- $15.2 Billion: High Medical Bills Tax
- $13.2 Billion: Flexible Spending Account Cap – aka “Special Needs Kids Tax”
- $4.5 Billion: Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D
- $0.6 Billion: $500,000 Annual Executive Compensation Limit for Health Insurance Executives
- $65 Billion: Individual Mandate Excise Tax and Employer Mandate Tax
- $60.1 Billion: Tax on Health Insurers
- $32 Billion: Excise Tax on Comprehensive Health Insurance Plans
Don’t forget, the government can raise and extend these taxes anytime they please now that Obamacare has been declared constitutional and we have to pay for everyone’s every hangnail and bloody nose.
One option, as CNBC noted, is that the government might start taxing employer-sponsored healthcare. You would have to put your employer’s contribution to healthcare on your tax form as if it were income. That is a huge source of income for the gluttons who believe they have the right to steal as much of a person’s income as they please.
The federal government is our new feudal lord. We should have skipped the American Revolution and kept King George III. It wasn’t worth the bother. If I wanted to come up with an idea to destroy the United States, I’d come up with Obamacare, an unsustainable ad hoc mess.