An Opposing Opinion

[ricojes]

Bottom Line: Barack Obama was elected to clean up the mess that George Bush left. In 2012 Mitt Romney is going to be elected to clean up the mess that George Bush AND Barack Obama left.

And Bush was cleaning up the mess that Clinton left....yada, yada, yada...

[Magox]

http://online.wsj.com/article/SB1000142405...2557501242.html

 

This is a good "What the Bill means to you right now" article.

There are benefits starting almost immediately, such as allowing your child up to age 26 stay on your health insurance plan, and insurance companies not being able to deny people with pre existing coverage. However the fact that insurance companies cannot deny people with pre existing conditions will do two things.

 

1. It will add more sick people to the health insurance risk pools which will bring up premiums for everyone else.

 

2. Some people will circumvent the system and drop out of coverage knowing that they can pick up health insurance at any time that they would like to, specially now considering that there are no penalties and that there will be healthier people dropping out of the health insurance risk pools, which once again means higher premiums.

 

3. Additional taxation for families that make $250,000 and on top of that another 3.8% Medicare tax on all unearned income (dividends, properties, etc).

 

So to recap, the positives over the next 2 years will be for people who are sick who won't be able to get denied and also for families that have children that will still be eligible to stay on their health insurance plans. The Negatives will be substantially higher premiums for people on the individual market along with much higher taxes. Let me also remind people that the Bush Tax cuts are going to expire soon, so there is going to be a massive new tax on the upper echelon earners over the next couple years.

 

What will see over the next 5 years.

 

Positives:

 

1. People who qualify for government subsidies will pay less for their insurance because of government assistance.

 

2. There is a good chance that there will be more people carrying insurance which will put more downward pressure on premiums because of the amount of healthy people entering into the risk pools.

 

3.. There will be small tax credits for small businesses.

 

4. The prescription donut hole will begin to close which eventually will mean up to $250 in rebates a year for senior citizens.

 

Negatives:

 

1. Severe Cuts in Medicare that will affect many senior citizens

 

2. Mandates on individuals, requiring they pick up health insurance which will put a strain on some younger individuals.

 

3. Mandates on businesses that have to carry insurance that is up to par by government standards. Example Caterpillar, CEO on Friday stated that it will cost his company $100 Million in the first year alone.

 

4. Shortage of Primary Care physicians, there are many of these physicians that are looking to drop out of this field and a survey was recently done showing that not many college students are looking into this area of care. Bottom line, the waits at doctors offices will be much worse than it is today.

 

5. $10 Billion a year tax on the health insurers. (how dumb is this?) This means that the health insurers will pass along the costs to who? Premiums will go up.

 

6. $2.8 Billion a year excise tax on medical device equipment. Same as #5. Costs will get passed to health care providers which in turn will get passed on to the insurers which then will get passed to the consumer.

 

7. $2.5 Billion a year tax on Pharma. Same as above, drug prescription taxes will get passed to the consumer.

 

8. Big Pharma struck a deal with the White House that would block the reimportation of foreign cheaper drugs from entering into the country. Higher Drug prices

 

 

Long term effect 10 years out

 

1. States will be overburdened with Medicaid costs. Government added assistance expires. State governments will have to make severe cuts in hospital staff, equipment and rationing unless Federal Government extends more assistance which in turn means higher deficits.

 

2. National Deficit will begin to start taking a pretty big hit. "Doc Fix" will already be signed into law permanently and costs will be much higher than expected as they always are.

 

3. As a result of deficits becoming out of control, government will begin to ration care under the cover of "unnecessary tests" and etc.

[John Adams]

There are benefits starting almost immediately, such as allowing your child up to age 26 stay on your health insurance plan, and insurance companies not being able to deny people with pre existing coverage. However the fact that insurance companies cannot deny people with pre existing conditions will do two things.

 

1. It will add more sick people to the health insurance risk pools which will bring up premiums for everyone else.

.

.

.

Long term effect 10 years out

 

1. States will be overburdened with Medicaid costs. Government added assistance expires. State governments will have to make severe cuts in hospital staff, equipment and rationing unless Federal Government extends more assistance which in turn means higher deficits.

 

2. National Deficit will begin to start taking a pretty big hit. "Doc Fix" will already be signed into law permanently and costs will be much higher than expected as they always are.

 

3. As a result of deficits becoming out of control, government will begin to ration care under the cover of "unnecessary tests" and etc.

 

Mine and your last two posts should be their own thread starter. These two posts should answer a lot of questions. Removing some of your final 3 forecasts (which I agree with BTW), it's a relatively unbiased view of what the Bill means.

[IDBillzFan]

Removing some of your final 3 forecasts (which I agree with BTW), it's a relatively unbiased view of what the Bill means.

If only the unbiased view made this more palatable.

[John Adams]

If only the unbiased view made this more palatable.

 

Resorting to a factual analysis gives me less inner rage.

[Alaska Darin]

To say nothing of what it's going to do to Treasuries and the country's credit rating...

[DC Tom]

To say nothing of what it's going to do to Treasuries and the country's credit rating...

 

Truth be told, that's a minor blip compared to the past ten years of irresponsible spending.

[pBills]

To say nothing of what it's going to do to Treasuries and the country's credit rating...

 

 

Our countries credit rating already stinks.

[Magox]

To say nothing of what it's going to do to Treasuries and the country's credit rating...

Funny you mention that.

 

Looks as if buying US government bonds aren't any longer the safest bonds out there.

 

To PBILLS: Not true, we have AAA rated bonds which are the highest rated bonds.

[IDBillzFan]

To say nothing of what it's going to do to Treasuries and the country's credit rating...

Big deal. The US loses it's AAA credit rating. So what? What's the worst that could happen?

[meazza]

Funny you mention that.

 

Looks as if buying US government bonds aren't any longer the safest bonds out there.

 

To PBILLS: Not true, we have AAA rated bonds which are the highest rated bonds.

 

If US debt goes from AAA to AA, then the whole world is going to end.

[meazza]

Big deal. The US loses it's AAA credit rating. So what? What's the worst that could happen?

 

You'll have to redefine "risk free rate".

[keepthefaith]

Big deal. The US loses it's AAA credit rating. So what? What's the worst that could happen?

 

What are the terms of our loans with other countries? If our credit rating drops does the interest rate change? Certainly if we go to borrow down the road the lower rating would likely mean a higher interest rate.

[Magox]

What are the terms of our loans with other countries? If our credit rating drops does the interest rate change? Certainly if we go to borrow down the road the lower rating would likely mean a higher interest rate.

He was joking.

[murra]

He was joking.

But seriously, the world would probably end.

 

Not just because we get our credit demoted to AA...

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

...but because it will probably be 2012 when that happens.

[meazza]

What are the terms of our loans with other countries? If our credit rating drops does the interest rate change? Certainly if we go to borrow down the road the lower rating would likely mean a higher interest rate.

 

Finance classes around the world will be baffled at what to use in the CAPM.

[GG]

Finance classes around the world will be baffled at what to use in the CAPM.

 

Silver lining is that the world will see less MBAs

[manateefan]

I'm totally against this plan and everyone else should be too. Frankly, I'm tired of the "we'll fix it later" idea because it's nothing more than a panacea. Social Security isn't fixed and it's totally !@#$ed. Medicare isn't fixed and it's totally !@#$ed. DoD gets more and more expensive and suffers from the same worsening ailments that has always plagued it. This will be no different.

 

You forgot another insurance that government runs that was supposed topay for itself (claims paid by premiums) Flood Insurance. Granted not everyone has it or needs it but it is billions in the hole.

[Alaska Darin]

You forgot another insurance that government runs that was supposed topay for itself (claims paid by premiums) Flood Insurance. Granted not everyone has it or needs it but it is billions in the hole.

The number of examples are endless. One only has to look at what Medicare/Medicaid costs versus what it covers (and what the CBO projected) to know what a disaster this is going to end up.

 

CBO said the result of the Bush Tax Cuts in 2001 would lead to a nearly $300 billion SURPLUS by 2010. That's some dead nutz stuff there.

[Spiderweb]

Washington Post puts Opeds from opposing forces in there as well. Doesn't mean the facts are right. Opinions are just that opinions.

 

 

............and so be those regurgitated with disdain by the right. Except I can't be so gracious as I believe the right knows exactly what they are doing when they lie, and distort the truth. The amazing part is how easily so many are mislead.

 

Democrats are spineless fools, and the GOP is pure evil. Now, more than ever is it time for a no party system of all independents to lead the country.