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  • Top Five Ways Obamacare Crushes the Middle Class

    President Obama has repeatedly claimed that he is “going to keep on fighting for what matters to middle class families.” Well, in this “fight,” the President seems to be his own worst enemy. His health care law does far more damage than good to the American middle class.

    Here are the five most prevalent and harmful burdens the middle class will be forced to bear under Obamacare:

    1. More taxes. Obamacare imposes $502 billion of new or increased taxes and fees. Heritage expert Curtis Dubay explains that several of the taxes “will ultimately be passed on to [middle-income families] through higher prices. These include the fees on medical device manufacturers, pharmaceutical companies, and health insurance companies and the new tax on tanning services.” The middle class will also be burdened by the individual mandate to purchase insurance, new restrictions and limits on their tax-free health and flex savings accounts, and a new tax on high-cost (Cadillac) health plans. Starting next year, Obamacare increases the Medicare payroll tax from 2.9 percent to 3.8 percent for individuals earning above $200,000 and couples earning more than $250,000 and for the first time extends the tax to income earned from investment. But the threshold for the higher rate isn’t indexed to inflation and will impact more middle-class families each year. The 2012 Medicare trustees report states, “By the end of the long-range projection period, an estimated 80 percent of workers would pay the higher tax rate.”
    2. Loss of existing coverage. As many as 35 million people could lose their existing coverage because of Obamacare. This is because Obamacare creates financial incentives for employers to drop coverage for their employees. One report that examined the health insurance costs of 71 fortune 100 companies estimated savings of $422.4 billion between 2014 and 2023 if they dropped their employee coverage and paid the employer mandate penalty. Another study predicts that 30 percent of employers will definitely or probably drop coverage under Obamacare.
    3. Higher premiums. Americans who purchase coverage in the new Obamacare exchanges will find that health insurance is still very expensive. American Enterprise Institute resident scholar Scott Gottlieb, MD, explains, “For a family of four, premiums on even one of the lower priced ‘silver’ options could still cost more than $15,000 annually on the exchanges.” A family’s income might exclude them from subsidies but not be high enough to pay $15,000 for Obamacare’s government-approved insurance. “A family of four earning $90,000 annually takes home about $60,000 after local, state, and federal taxes. If they lose workplace coverage, and move onto the exchanges, they could find themselves spending as much as 25 percent of the family’s take home pay for an average policy ($15,000 for the ‘silver’ plan).”
    4. Rising health care costs. As premiums and overall health care costs continue to rise, middle-class families, including those receiving a subsidy, will be left paying more. Beginning in 2019, Obamacare’s cost-containment strategy for the exchanges is to hold the total cost of the subsidies to 0.504 percent of GDP. Charles Blahous, a Medicare trustee, concludes that “this limitation would likely cause the federal subsidies to grow less rapidly over the long term than the cost of health care and thus require low-income individuals in the exchanges to shoulder a steadily increasing percentage of their health costs.”
    5. More government control of health care. Obamacare transfers massive authority over to the Secretary of Health and Human Services and expands the role of government in delivering care and coverage. This huge expansion of government’s role in health means that, by 2020, more than half of all Americans will be dependent on the federal government for health care and government bureaucrats will be in charge of deciding what you can and cannot buy.

    If President Obama is serious about “fighting for what matters to middle class families,” he should start by repealing his own health care law.

    To watch Heritage’s video on Obamacare’s Impact on Families and Future Generations, click here.

    Posted in Featured, Obamacare [slideshow_deploy]

    35 Responses to Top Five Ways Obamacare Crushes the Middle Class

    1. civisisus says:

      This abysmal excuse for "analysis" describes nothing so much as the depravity of those who have usurped the label "conservative intellectual".

      The rat's nest of lies, distortions, and simple errors masks a complete absence of viable alternative conceptions. "I'm against it, but don't expect me to conceive of options" is a two-year-old's intellectual posture. Hard to say whether ridiculous or shameful is the more descriptive epithet.

      • LibertyAtStake says:

        Oh, there's plenty to be "for" that was left out of the Pelosi/Obama monstrosity for purely partisan / crony political reasons. Tort reform. Insurance competition across state lines. Medicare vouchers for seniors to seek private alternatives.

        The point is Barry, Nanny, and their corrupt gang shoved a big gub'ment solution down our throats on party lines. They paid the political price in 2010, and will pay an even bigger one in 2012. Especially after SCOTUS kills the monstrosity and we get to start over with adults in charge.

      • vladdy says:

        Very nice job of saying absolutely nothing with a lot of words. Ad hominem is not debate.

        • MoBeach says:

          Haha! That's what I was going to say! Some people use all those big words to create the illusion that they know what they're talking about.

    2. Bobbie says:

      It can't start off with nothing. What and who's contributing to Obamacare now? In 2010 our costs tripled. I believe those who are paying their way no matter what income, is paying a great portion already. These monies go to obamacare where those employed are more protected than the patient.

      Since 2010, I see the doctor when he tells me, not when I have to and not by choice and if I don't comply I don't get my medicine. How is that not life threatening when the prescription is preventing my organs from failing? Now to further comply to the times I have to see a dietitian and an exercise therapist. He notes no reason and nothing with me has changed? I take care of myself where I can so I don't have to afford to see the doctor. Now I have no choice. Someone is making something somewhere somehow! Obama's rules are wrong to impose on everyone elses insurance and health care. IT'S CONTROL!

      America's insurance isn't “government approved” it's CONSUMER APPROVED! Why are we letting this country fall?

      We the people of, for and by ourselves, want authority of our own and children's' personal health! We want to control the costs of our own care, make our choices, live our lives, take our risks, challenge ourselves, keep our privacy and imprison those who have been taking this away! Which boils down to PRIVACY and who didn't keep our privacy and those who are taking our privacy. Justice all the way! We can take care of ourselves. Government isn't our maker!

      The tax free health and flex plans are important for self reliance and sufficiency. Why does Obama punish this but for CONTROL AND DICTATORSHIP? Why isn't this being stopped in it's tracks? Who's pockets is he filling? What's his patient ratio? It'll impact more families each year until we're forced on it. I don't want my personal information handed out to people and places that doesn't apply that I would otherwise say no to. What's going on with our private information REGARDING PERSONAL HEALTH NOW?

      How does private insurance constitute Obama's government to warrant higher fees on tanning services? Obama's insurance already costs more time and money with less service! Insurance is a word that the individual controls. Controlled by government drowns out any insurance under it's true definition.

      Funding micro managing of the health care is very dangerous, people. I've lost 5 lives in two years that are no longer with me, all due to micro managing. This person doesn't know what the medical person before them said and that medical person shouldn't have said this and so on and so forth, mix messages, medication errors… I endured it 5xs. All different cases of 5 wonderful, beautiful people that didn't deserve their treatment handled in such poor, reckless care. For whatever reasons government drew this into a crisis, all are convoluted….

    3. Joe says:

      I'm appalled by an article like this. The connections made are so speculative it makes me sick to my stomach. Why would an employer risk losing employees by cutting health insurance just to make a profit by paying the mandate? Since when is $200,000 considered the middle class? This will eventually be 80% if Americans???

      shame on you for trying to manipulate readers who have no understanding of what the healthcare law does. Studies have already been released showing progress and adoption off the new law. Don't make this law into something Americans can't benefit from just because it was a Democratic idea.

      • Bobbie says:

        shame on trying to manipulate readers who have no understanding of what the healthcare law does?

        It's the democrats that said with clear pronunciation to sign the law to find out what's in it! Manipulation! Democrat manipulation 1st and foremost! And you trust that? shame on you for being ignorant to truth. shame on you for not considering the facts. shame on you to trust government strangers who hide from all they're accountable for that your negatively effected intelligence, suggests qualifies control of your health care? shame on you for giving up your control to your own health and promoting government dictatorship to control your health for you. Nothing adds up, Joe! REGARDLESS OF YOUR SPECULATION, NOTHING ADDS UP! It doesn't matter where the idea came from, it's an idea that necessitates government control and it will not benefit America as a whole. It's unconstitutional for good reason! We are our own person who take care of our own individual lifestyles and the consequences that may endure! Don't put your responsibility in government control. The free market promotes our FREEDOM! This government doesn't have any interest in our FREEDOM!!!! Please wake up!

    4. Patricio Collera says:

      If you notice your language, they are mostly, probably, will ( speculative)! Let it happen first. Besides, why are you so afraid of spending money on your own citizens! The solution, divide the country! Let the ones that like obama care be one coutry and the others on the other side! I am so sick of you!!!

    5. Sounds like we need universal health care. Medicare for all.

    6. Karen says:

      This is untrue on so many levels I don't know where to begin.

      • Bobbie says:

        why don't you begin when many are struggling because of this?! tell me the reality I live is untrue! tool…

      • Bobbie says:

        tell me where reality is untrue? Begin anywhere you're comfortable…

    7. Micheal Allen says:

      Why oh why are our Congressmen and Senators not listening to the public. All I hear is repeal obamacare. Maybe we need to scream and yell repeal obamacare now. As a country it is designed to ruin and destroy the US from within, destroy even more by financial collapse. I've written my Senator and McCain won't do it even though we've asked him to get rid of it and the other guy (can't think of his name at this writing) won't even respond to my calls and letter and emails. It's a giant conspiracy they're all in on it why else would they exempt themselves. Time to get rid of all the liars in DC.

      • Full_Picture says:

        You can't remember the name of the guy you wrote a letter to?!?! Why do you think you're qualified to have an "educated" opinion about health reform?

      • Steven Davis says:

        "all i hear"? maybe cuz you only hang out with republicans. actually 68% of the public supports obamacare, so…..

    8. digit says:

      How will we ever survive??

    9. Roy Griffith says:

      Obama is destroying our nation, and the sad thing is that half of the people in this once great nation is going to vote for him again, and if he is reelected again, God help us all. Wake up America and get your heads out of the sand and see this man for what he really is, before it's to late.

    10. Eileen says:

      Without a strong tax base, we won't have any money for any one. So stop running after money and start running toward a 'pioneering spirit' that enhances the value of work!

    11. Obamacare is Obamascare for middle class. As it is made for people who have no job, will not do a job and in real sense it is WELFARE programme for Obama client's where he worked in whatever job he had. This new welfare is shoved down the throat of rest of us ( Middle Class )

    12. Full_Picture says:

      Your arguments are specious at best. There may be negative consequences, sure. Any policy will have some downsides. But you have to look at the net gain in comparison to "doing nothing." Health care costs would continue to rise unabated until there are more Americans (and employers) who cannot afford health coverage than those who can. What would YOU propose as an alternative to "Obamacare" to control healthcare costs?

    13. When the POTUS said that he's "serious about 'fighting for what's important to middle class families'" he actually misspoke. What was probably on the teleprompter was that he was supposed to confess that he's serious about fighting what's important to middle class families. He's been waging a war against prosperity and capitalism since before he was a senator… must be all the marijuana he's sucked into his lungs and cocaine he snorted into his brain.

      • Tamara N. Swart says:

        You definitely shouldn't be insulting Cannabis. IF Obama were smoking Cannabis – it would help him think more clearly … Cannabis is a proven, natural, non-addictive, medicine that has helped millions of people throughout history, all over the world. You should not insult what you obviously know nothing about.

    14. The Progressive movement's attempt at a governmental monopoly of our health care delivery is due to an incurable illness- ADHD (Adult Democrat Hyperactivity Disorder). The CDC can't cure it. Over 50% of our nation's citizens are so afflicted. All hail to the "Living Constitution" and the great efficient bureaucratic administrative state, Who will implement this plan? A survey of 5000 physicians found that 47% plan early retirement and 90% have advised their children not to enter into medicine as a profession.

      • Full_Picture says:

        According to the BLS there are 691,000 physicians or surgeons in this country. So your sample is only 0.7% of the entire population. What are the parameters of the survey? What is the source? I'm honestly curious.

    15. James Sharp says:

      Obama conducts war with the middle class while he holds his arm around its shoulder.

    16. the old america says:

      This man is an epic failure. He needs to be removed from the White House. We need to go back to true conservative principles: a good work ethic (all the people living in the U.S.), less government interference, immigration control, a strong military, and tax cuts ONLY for those who work.

    17. Scott B says:

      Ever notice that it is mostly the same people who whine about "greedy" corporations who step all over workers to make an extra buck are the same one's that ask questions such as "Why would an employer risk losing employees by cutting health insurance just to make a profit by paying the mandate?"

      According to the progressive left, corporations are nothing more than the devil's workshop where evil CEO's do nothing but whip the workers for every nickle they can.

      Except… you know… when it comes to Obamacare. They'll all be good global citizens then.

      Talk about wanting it both ways.

      • Full_Picture says:

        Show me a quote where the "progressive left" says that corporations are nothing more than the devil's workshop where evil CEOs do nothing but whip the workers for every nickel they can.

        You people. You don't have any good arguments so you just revert back to making it all up.

    18. Full_Picture says:

      Please recognize there is a difference between mandating health insurance and mandating health care. No one is forcing you to go to the doctor or telling you you can or cannot have this or that medicine. The government is saying you have to have insurance. So that when you NEED to go to the doctor or you NEED a life saving medication, you can afford it and you don't depend on the rest of us to pay for it.

      For God's sake, this was a Republican idea before it was a Democratic idea! Where were your outbursts then?!?!

    19. seriously says:

      Universal Health Care just enables the people to continue on their self destruction without care

    20. Kat says:

      Well Democrats, you got what you wished for: the largest tax increase on the middle class ever!

      Lie number 1: This is not a tax
      Lie number 2: You can keep your health insurance
      Lie number 3: You can keep your physician.

    21. Jeffrey Denny says:

      The problem with Heritage is that you guy start with a conclusion and work backwards, assembling the facts and "analysis" as needed. I'm a moderate Democrat looking for a common-sense way to look at Obamacare, and sympathetic to costs that business might have to take on. That said, I've worked with enough companies to know that they can, and do adjust to the market, which always has a public policy component. They're much more realistic than you give them credit for. You are off my list as a legitimate policy analysts, more interested in providing support to the party and preaching to the converted. I understand that's where your money comes from. But c'mon — don't you have even a shred of integrity?

    22. Candace says:

      i work in a pharmacy where i see all the ppl it will benefit and it shouldnt benefit them. i'm tired of paying for them now, i don't want to pay more for them. i told my friends if i wanted to support ppl i would of had kids already. it sucks that i took the time to go to school and better my life and get a good job and i'm the one that has to pay for every1. maybe when i was offered the chance to go to college i should have said no, i will lt other ppl take care of me.

    23. Rosa Herrera says:

      But any lie is going to make your insurer doubt the other information you have given and can cause delays in your coverage. Lies discovered after your policy has begun can be even more damaging, especially in terms of life insurance. To avoid insurance complications, it is always wise to be as honest as possible on your insurance applications.

    24. Fireant says:

      What if prefer not to purchase healthcare insurance, this forces you. Hows this going to work for malpractice and malpractice lawsuits. Doctor shortages, fraud, greed, what if you want a second opinion, recommended to specialists, emergency's, accidents that are not your fault, illegal immigrants that work under the table or are here in American with no job, no home, the homeless. What about those in America that are here on vacation that are here on vacation and need medical attention but have no insurance nor ability to pay, exchange students, and some much more. So this healthcare is up and running 100%, what happens if another President and there administration change this or that and there changes make things worse and this forced healthcare program fails are there plans for failures or changes or will we just get higher taxes to pay for failures that could be irreversible changes. We had the best healthcare in the World. Problem was too many didn't pay for services rendered and were given the free way out. Any business would fail if they couldn't profit and were forced to give them service for free over and over even if it was just a headache at the emergency room.

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