New Health Plan set to “Crush” the Middle Class

Posted on October 30, 2009. Filed under: Activism, Politics | Tags: , , , , , , , |


Editorial note: All the numbers and facts were obtained from the Census Bureau, Unemployment figures, Medicaid and Medicare information, the CBO letter to the House and the Healthcare Proposal released on October 29, 2009.

Let’s begin with stating the facts we can all agree upon at this time. The most pressing problems with current healthcare systems are as follows:

  1. Non-coverage of pre-existing conditions
  2. Some people don’t have coverage
  3. Can’t afford it
  4. CHOOSE not to have it and save money
  5. High premiums

The new plan, will allegedly result in a neutral monetary impact for the government (current admiministration claim). The Congressional Budget Office claims the cost will be close to 1Trillion dollars. Yet with the increased taxes on the people, there will be minimal negative impact to the government deficit. With the increased tax, and medicare and Medicaid cuts, it won’t impact the government. It will most severely impact the middle class. The Medicaid cuts won’t begin to address the fact they are including a larger group of people in the Medicaid program under the new Healthcare plan. The people who work and contribute will be paying exorbitant premium increases to accommodate the many new inclusions in the healthplan.

In a nutshell, here is how the new plan will be paid for by working Americans (numbers from Bureau of Census, Unemployment Department and the Social Services Branches of government respectively) : The premium percentage limit specified will be based on the modified gross adjusted income of the people who are working. If you strive to work hard and reap the rewards of a free enterprise system, this Healthplan will be penalizing you on the reward.

Take a look at the numbers:

  1.  # of 18 and under: 73.9M
  2.  # of unemployed in the country at this writing: 15.1M
  3.  # of working age adults = 191.2M

What do the numbers mean to America with this new health plan?

191.200,000        Working age people in this country.
– 15.100,000        Unemployed people
176.100,000        Working age people  employed
– 3,950,357           Working age people on welfare
172,149,643          Working age people who are employed
– 46,995,000        Approximately uninsured in the country
125,154,643          Working age people who are employed
– 11,900,000       Estimated number of illegals in the country as of March 2009
113,254,643        Approximate total number of gainfully employed people
 
 307,818,616         Total population per census bureau
-255 ,143 ,000      # of people covered on insurance in 2008 census
  52,675,616           Not insured
– 11,900,000        Estimated illegal aliens 
40,775,616            People who are legal and uninsured (13.25% of population)

If we look at the number of gainfully employed people (primarily middle class), these numbers and the newly proposed healthcare plan tell a specific story:

  1. Increase benefits for Medicaid recipients from 57% contribution by the government to 91%
  2. Poverty level now to be determined by up to 150% of the actual poverty guidelines (Millions more of the population will be able to go on government sponsored Medicaid)
  3. Employers will be better off financially paying the fine, not offering coverage, and simply have employees take public options
  4. Parents will be required by law to provide insurance coverage for children up to the age of 27

Whether we include the illegal immigrants or not, the tax burden for the above mentioned items, and to insure non-working people falls squarely on the shoulders of the middle class. There are some slight numerical differences noted in the reports from the various government agencies – but you can see the concept of what is happening here. The primarily middle class working Americans will be paying for everyone. The majority of the companies will opt to pay the fines and the employees will need to go on the public option. This will save the companies money and result in a premium that is 3-4 times higher (conservative estimate) than what a person pays today. This factors in the company is no longer subsidizing the person’s premiums, benefits are improved, and the person must contribute to paying for the non working individuals.

**New plan includes $558 billion in revenues from tax provisions (per CBO)

 The changes in revenues include effects on Social Security revenues, which are classified as off-budget. Starting in 2013, nonelderly people with income below 150 percent of the Federal Poverty guidelines would generally be made eligible for Medicaid; the federal government would pay a share of the costs of covering newly eligible enrollees that averaged about 91 percent. (Under current rules, the federal government usually pays about 57 percent, on average, of the costs of Medicaid benefits.) In addition, states would be required to maintain current coverage levels for individuals under Medicaid and some children in CHIP through 2019. Beginning in 2014, states would shift some children in CHIP to Medicaid, but the federal government would continue to provide enhanced reimbursement, which currently averages about 70 percent, to states for providing such benefits. CBO estimates that state spending on Medicaid would increase on net by about $34 billion over the 2010–2019 period as a result of the provisions affecting insurance coverage.

There were many other “addons” that were unnecessary but which directly burden the taxpayers. This is another good example of zero fiscal responsibility in the House at this time. They won’t be paying the bill – we will! For instance the government will judge the geographies of each state to determine cost of living adjustments. An example would be that Texas has a good economy and a much better cost of living than California. The cost of living adjustment means a Californian would pay less and a Texan would pay more to make up the difference. If you believe the country is suffering economically now, just wait until your insurance premiums quadruple to pay for all the extras in the new plan. It doesn’t just “fix” the issues in the healthcare system, there are noticeable “improvements” for the non working people in the country. Ladies and gentlemen, this is a classic redistribution of wealth in the country.

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One Response to “New Health Plan set to “Crush” the Middle Class”

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I found your blog on google and read a few of your other posts. I just added you to my Google News Reader. Keep up the awesome work Look forward to reading more from you in the future.


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