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  • The Max Tax: Baucus Health Bill Is More of the Same

    Nothing New Here

    • Same Objectionable Features: A public plan disguised as a co-op, individual and employer mandates, massive federal regulation over insurance and benefits, and massive Medicaid expansion—the Baucus bill has them all. These are the same features plaguing the other bills in Congress and that Americans have routinely dismissed for months.

    Seven Fatal Flaws

    • Middle Class Tax Hike: The Baucus bill would impose a new sales tax on drugs and medical devices and a new federal excise tax on insurance plans that exceed $8,000 for an individual and $21,000 for a family. These taxes will ultimately be passed down to the consumer, putting many middle class families on the receiving end of a tax hike.
    • An Individual Mandate: In 2013, almost everyone would be required to purchase health insurance that complies with new federal standards. Those making more than three times the poverty level would face a tax penalty of $950 (maxing out at $3,800 per family) and $750 (maxing out at $1,500 per family) for those below 300 percent poverty. This penalty could apply to individuals with incomes as low as $10,831 a year.
    • No Privacy: In order to enforce the tax penalty provisions, the government would be forced to collect detailed health insurance information on Americans, reducing patient privacy and adding significant administrative costs to employers and insurers.
    • A Pay-or-Play Employer Mandate: Employers with more than 50 employees that don’t offer health coverage would have to pay a penalty for each employee who qualifies for new federal subsidizes under the bill. Inevitably, low-income workers will be hurt the most as employers would simply downsize or cut wages.
    • A Thinly Disguised Public Option: The Baucus bill invites indefinite federal control of a “co-op” by providing an unnecessary $6 billion in federal funding for startup loans and grants and it gives broad latitude to the HHS Secretary to regulate co-ops and promote them. The co-op created in this bill is literally an acronym for a new government-run health plan.
    • Medicaid Expansion: Under the Baucus bill, millions of Americans would end up on Medicaid. The current Medicaid program is unsustainable and poorly serves the needy and indigent now. Taxpayers will pick up the new costs of Medicaid, and states will have little flexibility for real reform.
    • Medicare: The Baucus bill establishes value-based purchasing, requiring compliance with government guidelines on the delivery of medical services. Hospitals and physicians who don’t comply would get lower Medicare payments. This approach could bias or compromise doctors’ decisions and contradict U.S. law on the federal interference in the practice of medicine.

    Start Over

    • Time to Hit the Reset Button: The President needs to lead by meeting with key leaders of both parties and seek bipartisan reform around two key themes: 1) instead of a one-size-fits-all federal solution, Congress should let the states take the lead on reform, and 2) reform the tax treatment of health insurance to give all taxpayers tax relief for purchasing private insurance and extend assistance (through spending offsets) to low-income families to purchase private insurance instead of expanding government care.

    For more information, please visit: http://FixHealthCarePolicy.com

    Posted in Obamacare [slideshow_deploy]

    11 Responses to The Max Tax: Baucus Health Bill Is More of the Same

    1. Bill San Antonio TX says:

      There will be no tax on 95% of Americans.

      How do you define "tax". I define it as ANY money coming out of my income not of my choosing; it matters not in what form it takes.

      You cannot possibly pay for all of these new programs. We are in debt with the ones we have now.

      But, if we keep printing money and keep spending until we overload the system – permanently – then government will be the only option!

      I want one single liberal to intelligently explain to me how we can continue down this road? No emotions or fee-good stuff. Just facts, because our government will not and cannot explain it.

    2. J.C. Hughes, Texas says:

      Bravo Rory! You slammed a home run with your "Time to Hit the Reset Button" suggestions. I'm a little fuzzy regarding the spending offsets but mostly you verbalized my exact thoughts about this whole healthcare debate. Great work.

    3. Pingback: Obama Panders to Illegals; Tries End Run to Provide Public Option for Illegals; Joe Wilson is right, You Liar! « VotingFemale Speaks!

    4. Pingback: » Financial News Update – 09/18/09 NoisyRoom.net: Where liberty dwells, there is my country…

    5. Pingback: Baucus Plan: The Gift That Keeps On Giving (At Least To The Bloggers) – Blog Watch

    6. HSR0601 says:

      The State Of "Yes We Can", Minnesota Knows Better !!

      1. As regards a make-believe scheme, the source of funding coming from a middle class is utterly against the commitment of Democratic party.

      2. No cost-competitive advantage does not clear the grave concern about the unsustainable cost of overall health care program in the long run.

      3. Even with some benefit for primary practitioners, the baseless scheme does not come with fundamental payment reform, or a pay for value reimbursement formula. It means that the insurer-friendly scheme is not cleaning up the concerns over a quality issue and $9trillion of deficit over the next decade.

      ((Here is some of CBO analysis : While the costs of the financial bailouts and economic stimulus bills are staggering, they are only a fraction of the coming costs from Social Security, Medicare, and Medicaid. Over the next decade, the Congressional Budget Office (CBO) projects that each year Medicaid will expand by 7 percent, Medicare by 6 percent, and Social Security by 5 percent. These programs face a 75-year shortfall of $43 trillion–60 times greater than the gross cost of the $700 billion TARP financial bailout)).

      4. For Medicare & Medicaid system to survive from the most wasteful structure on earth, enough savings by ways of fundamental changes need to be secured, in return, the savings thereof suffice to meet the goal of well-planned public option.

      ((Even with far less visits to docs, which average a half or a third of them in any other free states, Americans pay roughly twice as much per person right now)).

      5. For the record, prior to nation-wide deployment of reform, The State Of "Yes We Can", Minnesota influenced by Mayo clinic spends "20 percent" less per patient than the national average and 31 percent less than in the highest cost state. It highlights that no substantial tax raise is needed at least for sure.

      ((The $583 billion of revenue package, and the astronomical savings of public option aside, "20%" of $923.5bn (the combined Medicare and Medicaid cost per year, as of July) is around $184.7bn per year and 1.847trillion over the next decade, and this patient-centered value alone could be sufficient to meet the goal of public option)).

      6. In brief, the long-awaited and most hopeful health care plan is to meet these criterias : Affordability, Quality, and A Check function against runaway premiums thereof.

      Clearly enough, due largely to its lower overhead cost, purchasing power and fundamental payment reform, the well-planned public option would be an even better candidate than the fabricated scheme by THE INDUSTRY in these aforementioned regards.

      Now is the moment to turn page to contemporary energy and financial upgrades glossed over in 8 years.

    7. Jane Hughes, San Ant says:

      It should be clear by now the government and bureaucrats do not have the knowledge to fix the system and preserve the care. Medicare and Medicaid are their two health insurance entities, and they are scheduled for bankruptcy in 2017 and currently are carrying in excess of $35 trillion in unfunded entitlements. They have not earned the trust of the American People to take over the nation's healthcare system. I am a physician and surgeon and have developed a private sector plan. I have shared this with all fifty governors and many people representing various sectors of our country. We must be able to say that the choices are not ObamaCare or the status quo as it is framed in Washington. Private sector plans that offer freedom of choice, portability, affordability, and that are separated from the employer are possible. Go to my website http://www.usaHealthalert.org and click on "the plan".It is just one of many, but I hope it gives you ideas and hope that if we can stop the true healthcare crisis, the government takeover of our healthcare options, we can fix the system while preserving our wonderful care.

      Jane Hughes, M.D.

    8. Pingback: The Greenroom » Forum Archive » Obama: Healthcare mandate is not a tax BECAUSE I SAID SO

    9. Pingback: Patterico’s Pontifications » Obama: Healthcare mandate is not a tax BECAUSE I SAID SO

    10. Pingback: Michelle Morin » Blog Archive » 9-20-09 National Health Care Update Links & Alert

    11. jim, Tacoma says:

      This is what BHO said in his campaign – say what you need to get elected – this is applying to the Baucus bill, if enacted – the fallout will increase medical as well as all industry costs across the board as well as putting an additional burden on employers and employees. So, are we going to have the government tell us where we can go, who we can see – much like a "BIG Brother", so, what is the problem (does socialism ring a bell?

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