Fix Health Care Policy

Obamacare at Three Years: Failing Small Businesses

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One of Obamacare’s many failures is the temporary small business tax credit, which is intended to encourage small employers to offer health insurance to their employees by partially offsetting the cost. Thus far it has largely failed to do so.

Initially, the IRS estimated that 4.4 million taxpayers could have been eligible for the credit. As J. Russell George, Treasury Inspector General for Tax Administration, testified before Congress, “The IRS mailed approximately 4.4 million postcards at a reported cost of approximately $1 million, with basic information on the Credit to businesses that could be affected.”

But even after spending $1 million to advertise the credit, only 7 percent of potentially eligible employers claimed it. As George testified: “[T]hrough mid-October 2011, the IRS reported that 309,000 taxpayers…had claimed the Credit for a total amount of $416 million. This is substantially lower than the Congressional Budget Office estimate that taxpayers would claim up to $2 billion of Credit for Tax Year 2010.”

Read the rest on The Foundry…

Tags: congress, costs, crushing rules, employer mandate, small business tax credit, small employers, subsidies

Top 5 Reasons to Repeal Obamacare

The House is scheduled to vote today on full repeal of Obamacare. Although many reports are circulating that Congress has already voted on this numerous times, this is only the second time the House will have voted to fully repeal the law.

Heritage has laid out the impacts of Obamacare on the American people—and according to a poll released this week, a majority of Americans agree that Obamacare should be repealed. Health and Human Services (HHS) Secretary Kathleen Sebelius took to the pages of The Washington Post this week to re-argue the Administration’s positions, claiming basically the opposite of the havoc Obamacare is wreaking on the U.S. economy and health care system.

As Congress takes up the issue, we present the Top 5 Reasons to Repeal Obamacare:

Read the rest on The Foundry…

Tags: congress, health law, HHS, repeal Obamacare, top 5 reasons

Obamacare at the Court Preview: Day 2, The Individual Mandate

Call it the main event: after a day puzzling over whether Obamacare’s fines on those who don’t buy insurance constitute a tax or a penalty—an important threshold issue, to be sure, but one that hasn’t quite captured the public’s imagination—the Court today will hear oral argument regarding one of the most important issues before it in 65 years: whether the Constitution empowers Congress to require that virtually all Americans purchase or obtain health insurance coverage.

The answer to that question will determine whether the federal Leviathan truly remains a government of limited, enumerated powers, or whether the division of powers between the federal government, on the one hand, and the states and the people, on the other, has finally been obliterated. In short, today’s argument cuts to the very heart of our “federalist” republic, pitting against each other two drastically different visions of the role of the national government in our lives.

Read the rest on The Foundry…

Tags: commerce powers, congress, freedoms, Individual Mandate, overreach, Supreme Court challenge, unconstitutional

Lunch with Heritage Online Chat on Obamacare

Click here to join us right now for our “Lunch with Heritage” chat. We are joined by Health Policy expert Kate Nix. She is taking your questions about the CLASS Act and Obamacare. Earlier this week, the House voted to repeal the CLASS Act, which is part of Obamacare. The CLASS Act would have set up a government-run long-term care insurance program that the Administration has already deemed unsustainable and unworkable.

 (Read the full exchange on The Foundry…)

Tags: CLASS Act Repeal, congress, ObamaCare, unsustainable

Congress Should Stop Subsidizing Warren Buffett’s Health Care, Not Increase His Taxes

Reports have surfaced that conservatives in Congress may propose further increasing income adjustment in Medicare to lessen the program’s insolvency. This is a great idea. While the left continues to argue for higher taxes for the likes of Warren Buffett to maintain the status quo of a costly, failing Medicare program, it makes more sense that Congress should simply stop subsidizing them.

As Congress continues to pursue solutions to the entitlement spending crisis, one question that must be answered is whether the United States should even have universal federal entitlements to begin with. Considering the wreckage of the nation’s finances, the answer is clearly no. It’s not only that we cannot afford it, but the very creation of popular dependency on government itself threatens prosperity.

For wealthier Americans like Buffett, the policy options are clear. The Obama Administration and its allies in Congress are obsessed with imposing higher taxes on them, regardless of the impact on investment in the economy and despite the fact that they already pay the bulk of federal income taxes. The intent behind this course of action is to maintain, largely unchanged, the existing federal entitlement regime.  (Read the rest on The Foundry…)

Tags: congress, entitlement spending, subsidizing Medicare, taxes, Warren Buffett

Side Effects: Special Treatment for Congress

As we noted last week, Congress screwed up the language of their health care bill at their own expense. But, thanks to Obama administration lawyers, members and their immediate personal staff might be able to keep their existing health insurance coverage — for now.

The problem, as Heritage and others noted, is that the bill’s language says they have legislated themselves out of their own coverage under the Federal Employees Health Benefits Program (FEHBP) and into the newly created health insurance exchanges they’re imposing on the states. Without the timely intervention of the administration’s lawyers, the language might require them to do so right away. (more…)

Tags: congress, congressional research service, Federal Employees Health Benefits Program, FEHBP, health insurance coverage, Side Effects

Is Congress Exempting Itself From Health Insurance Tax?

It is still far from clear what the White House’s new strategy to pass health care reform will be in the face of Scott Brown’s election to the Senate. But according to Federal News Radio negotiations between the House and Senate are still ongoing, including this victory for House Democrats:

Federal employees covered under some of the more expensive plans in the Federal Employees Heath Benefit Program now have some breathing room as well.

Federal workers had been left out of an earlier compromise on health care reform shielding union workers from a proposed 40-percent excise tax until 2018.

The office of Rep. Gerald Connolly (D-Va.) says he “personally called the White House to express his concern of leaving federal employees out of the deal.” An agreement reached Wednesday extends the exemption to federal employees through 2018 as well.

(more…)

Tags: Cadillac Plans, congress, ObamaCare, taxes

Family Health Care: A Giant Game of Chance

The House and Senate health care legislation resembles a game show more than deliberate exercise in public policy. As confusing and confused legislation language is translated into dollars and cents, how much Americans will find themselves paying for health care? It looks more and more like a giant game of chance.

Not only is Congress leaving the current inequities created by the federal tax treatment of health insurance in place, it is busy creating new ones.

Family Premiums. The Congressional Budget Office (CBO) estimates that under the House bill, the average premium in 2016 will be $15,000 and the average cost sharing will be $5,500 for a family policy or a total of $20,500. Under the Senate bill, the average premium will be $14,100 and the average cost sharing will be $5,000 for a family policy or a total of $19,100. Is the higher cost House plan better? How do we know? If the Senate can come in $1,400 lower than the House, could the price tag be lowered by another $1,400? If not, why not?

Under the House bill, a family of four with income of $30,000 will receive the $20,500 value for just $1,100, or less than $100 per month. The family will receive premium and cost sharing subsidies from their neighbors worth $19,400. Under the Senate bill, a family of four with income of $30,000 will receive premium and cost sharing subsidies worth $16,800, still quite generous. These subsidies are so generous in fact, that the House and Senate leaders don’t want millions of Americans to have them to buy private health insurance. (more…)

Tags: congress, Congressional Budget Office, family health care, family premiums, Medicaid, meidcare

U.S. House Votes in Favor of Obamacare

The health care bill passed by the House tonight took another step towards transferring power over personal health care decisions from individuals to bureaucrats in Washington. The Republican alternative was a good strong first step of targeted reforms that are necessary to improve health care financing and delivery.

If it were to become law, the House bill would put the government in control of over half of all health care spending and would dramatically shift America’s health care system from one that is largely private to one that is subordinated to government control.

The bill engineers a massive expansion of the Medicaid, a welfare program that provides substandard care to lower-income and poor Americans and threatens state budgets. The addition of the public plan, a new federal health care entitlement, would add to the crushing tax burden Americans already face from exiting entitlements. Even worse, millions of Americans would be pushed out of their existing health care coverage, notwithstanding the promises of the President. (more…)

Tags: alternative, congress, democrat, health care reform, hoyer, Medicaid, Medicare, Obama Health Care Plan, pelosi, republican, vote

Behind Closed Doors: The Obamacare Arm Twisting Begins

The heat is happening behind closed doors as the U.S. House prepares for a Saturday showdown vote on health care. Access is everything. By keeping Members of Congress in Washington, D.C., this weekend, Democratic leaders keep them away from angry constituents back in their home states, where the Members normally would depart from Friday to Monday. (Note: The tactics aren’t different from what Republicans sometimes used when they held the majority.)

The first step is to keep Congress in town. The second is to keep them monitored and available for whenever leaders want to summons them for backroom meetings—sometimes to discuss and sometimes to pressure and browbeat and offer deals. A “buddy system” is sometimes assigned so a fellow Congressman from the party’s whip team keeps tab on each undecided member’s whereabouts, their cell and other private phone numbers, the places they tend to hangout between votes, and similar information.

Members don’t like to be found and pressured. As one speaker noted at Thursday’s “House Call” tea party event at the U.S. Capitol: “There may be some members hiding right now. They may be in the basement. They may be in the cafeteria, pretending they’re not a Congressman.” (more…)

Tags: arm-twisting, congress, health care reform, hoyer, Members of Congress, Obama Health Care Plan, ObamaCare, pelosi