Tag Archives: Tax

How Obamacare raises your taxes if you don’t buy health insurance

Story here from the Daily Caller. (H/T Hot Air)

Excerpt:

Individuals who don’t purchase health insurance may lose their tax refunds according to IRS Commissioner Doug Shulman. After acknowledging the recently passed health-care bill limits the agency’s options for enforcing the individual mandate, Shulman told reporters that the most likely way to penalize individuals that don’t comply is by reducing or confiscating their tax refunds.

Speaking at the National Press Club on Monday, Shulman downplayed the IRS’s role in enforcing the recent overhaul of the health insurance industry by claiming the agency would not aggressively target individuals who don’t purchase coverage. He noted that the health-care bill expressly forbids the agency from freezing bank accounts, seizing assets or pursuing criminal charges, but when pressed said the IRS would most likely use tax refund offsets to penalize those that don’t comply with the mandate. The IRS uses refund offsets to collect from individuals that owe the federal government a delinquent debt.

“These are not the kinds of things we send agents out about,” Shulman said. “These are things where you get a letter from us. Congress was very careful to make sure there was nothing too punitive in this bill.”

Many reports have claimed that enforcement of the individual mandate will be non-existent, but Shulman’s answers indicate differently. According to BusinessWeek, starting in 2015 Americans who don’t purchase insurance will be subject to a fine of $325 and that sum increases to $695 in 2016. However, the commissioner seemed confident that in most cases individuals would either receive subsidies to purchase insurance or simply do so on their own in order to comply with the law.

Here’s my previous story explaining how Obamacare is a bad deal for young men because they are forced to pay for the elderly, who use a lot of health care, and they also have to pay for coverage for treatments they will never need, like breast implants and in vitro and abortions. If you young men, and young people in general who are healthy, don’t want to pay for other people’s abortions, then you can kiss your tax refund goodbye.

How is socialized medicine working out in the UK and Canada?

First, this one from ECM, which appeared in the leftist UK Guardian. (H/T Secondhand Smoke)

Excerpt:

Blunders by GPs, hospital doctors and nurses jeopardised the health of thousands of patients when cancer was misdiagnosed or not spotted soon enough, according to an NHS report.

Over a period of a year, doctors failed to spot key signs of cancer, tissue samples were mixed up, some patients were wrongly given an all-clear and vital diagnostic tests were delayed because of staff and equipment shortages, the study, undertaken by the NHS’s National Patient Safety Agency (NPSA), found.

[…]When 508 cases were examined in detail, it was found that 177 patients were harmed. Two died, 25 suffered severe harm, 52 moderate harm and 88 low harm. Of a sample of 150 patients, 37% experienced delays of up to three months, 38% of more than three months and some had delays of three years. The government estimates that 10,000 die each year because of late diagnosis of cancer. The UK is poor by international standards at diagnosing cancer, studies have shown.

The post features tons of alarming examples. There’s socialism. When you don’t have your money in your hand, you cannot expect to be treated properly. You need a choice among providers to negotiate the best deal for your dollars.

Next, also from ECM, this one from the UK Telegraph.

Excerpt:

The Ambulance service is being paid bonuses for not taking patients to hospital in a bid to help the NHS hit controversial targets.

Patients’ groups expressed horror at the “sick experiment” in which NHS managers have agreed to pay £38 for every casualty that ambulance staff “keep out of Accident and Emergency” (A&E) departments after a 999 call has been made.

The tactic is part of an attempt to manage increasing demand for emergency care amid failings in the GP out-of-hours system.

[…]The bonuses are among dozens of schemes being tried out by ambulance trusts across the country as they attempt to improve their emergency response times and help A&E departments meet controversial targets to treat all patients within four hours of arrival.

Another plan uncovered would see thousands of 999 calls currently classed as urgent downgraded so that callers receive telephone advice instead of an ambulance response.

But we’ll soon surpass them, I’m sure.

But wait! Maybe Canada’s single-payer system is better!

The left-wing Montreal Gazette reports.

Excerpt:

Health Minister Yves Bolduc said Friday over-crowding in Quebec’s hospital emergency rooms would be resolved in “four or five years.”

“We have the best health care system in the world,” Bolduc said, while admitting that patients sometimes have to wait for that care.

“All the patients are well treated,” he said.

[…]Quebec still has a shortage of doctors and nurses, he said…

[…]Bolduc announced his newest timetable in response to reports patients are kept for 48 hours and longer in emergency.

As well, relatives are blaming deaths in their families on emergency-room congestion.

From the communist CBC, here’s more:

Guy Morisette, head of the Outaouais health agency, told CBC News that the hospital has worked hard to fix the situation, but recruiting and retaining enough staff remains a problem, and additional solutions such as training personnel and developing new programs are longer-term efforts.

Hospital Average ER Wait Time
Buckingham 20 h 30 min
Gatineau Hospital-Hull campus 20 h 06 min
Gatineau Hospital-Gatineau campus 25 h 36 min
Gatineau-Memorial 17 h 00 min
Maniwaki 10 h 24 min
Pontiac 13 h 12 min
Outaouais average 20 h 42 min
Quebec average 16 h 30 min

Taxing and regulating doctors and treating patients for paper cuts for FREE doesn’t create a shortage of health care at all. Oh, no. And anyway, the politicians just get treated in the USA anyway.

Last, Quebec, Canada’s most liberal province, proposes massive user fees.

Excerpt:

Quebeckers are bracing themselves for sweeping increases in taxes, rates and fees after a provincial budget that also proposes a controversial user fee for health-care services.

By proposing a fee for medical appointments, the 2010-11 budget tabled Tuesday represents a shift in how the province addresses spiralling health-care costs, and could trigger a national debate over conflicts with the Canada Health Act.

[…]The user fee would take the form of a deductible that, according to one proposal, would be capped so that total charges do not exceed 1 per cent of a family’s annual income. It would involve charging $25 per medical visit and be paid on a fee-for-service basis. It was estimated under one proposal that a couple with two children making 10 medical visits a year would pay a maximum of $250 annually.

The government of Premier Jean Charest also announced a new health tax to commence in June, 2010, that will be levied on individuals when they file their income taxes. The “health contribution” will cost adults $25 this year and eventually climb to $200 in 2012. Lower-income families will be exempt. When fully implemented, the new tax will generate $945-million a year.

Ontario already has massive income tax rates, property taxes, surtaxes, sales taxes, municipal taxes and health care surcharges of hundreds of dollars a year. It’s not just that they have no freedom of speech, but they die waiting for health care. (This isn’t the Conservative Party’s fault – they don’t have a majority yet to bring in market reforms to lower the cost of health care, and they don’t have a majority of the Senate and not even close to a majority in the Supreme Court).

What are the consequences of insuring customers with pre-existing conditions?

Walter Williams

Investors Business Daily

What would happen if Obama succeeds in passing a law to force insurance companies to accept customers with pre-existing conditions at the same price as everyone else who doesn’t have pre-existing conditions?

Read this IBD editorial by George Mason University economist Walter Williams. (my second favorite economist)

Excerpt:

Sen. John Rockefeller, D-W.Va., chairman of the Senate Finance Subcommittee on Health Care, and Rep. Joe Courtney, D-Conn., a member of the House Education and Labor Committee, have introduced the Pre-existing Condition Patient Protection Act, which would eliminate pre-existing condition exclusions in all insurance markets. That’s an Obama administration priority.

I wonder whether President Obama and his congressional supporters would go a step further and protect not just patients, but everyone against pre-existing condition exclusions by insurance companies. Let’s look at the benefits of such a law.

A person might save quite a bit of money on fire insurance. He could wait until his home is ablaze and then walk into Nationwide and say, “Sell me a fire insurance policy so I can have my house repaired.” The Nationwide salesman says, “That’s lunacy!” But the person replies, “Congress says you cannot deny me insurance because of a pre-existing condition.”

This mandate against insurance company discrimination would not only apply to home insurance, but auto insurance and life insurance as well. Instead of a wife wasting money on costly life insurance premiums, she could spend that money on jewelry, cosmetics and massages and then wait until her husband kicked the bucket to buy life insurance on him.

Insurance companies don’t stay in business and prosper by being stupid. If Congress were to enact a law eliminating pre-existing condition exclusions, what might be expected?

Yeah, that’s why Walter Williams is awesome. And you must read the rest to see how it would apply to medical insurance. Everything sounds good to those who do not ask the most important question in economics: “and then what happens?” And that question cannot be answered with “then I feel good about myself and people like me because I care about the poor”. That question needs to be asked for the forgotten man. The nameless man who is hog-tied into supplying the wealth that gets redistributed by demagogues desperately seeking adulation from the covetous masses.

The problem is that people don’t understand how insurance works. If you have to pay guaranteed claims from people with pre-existing conditions, then the premiums of all those people who don’t have pre-existing conditions will be increased to pay for those claims. Think. Beyond. Stage. One.

The Cato Institute

Consider this podcast from the libertarian Cato Institute, which explains a little more from the point of view of the medical insurance company.

The MP3 file is here.

Here a summary of what happens after stage one, to the forgotten man. Medical care costs money to produce. Forcing medical insurance companies to sell care for a pre-existing condition far below the actual cost of providing it will force insurers to drop coverage for those pre-existing conditions. (Or they may drop the doctors who treat those conditions from their network). That is worse for the people with pre-existing conditions. And this is how economic ignorance hurts the very people that the secular leftist do-gooders are trying to help.

Believe me when I tell you that this happens all the time with leftist economic policies. It’s the law of unintended consequences. They think they are helping their preferred victims, they feel better about themselves, but they actually hurt the very people they are trying to help. And by “help” I mean they steal someone else’s money/product/liberty and transfer it to their preferred victims in order to buy votes.

National Review

Now, take a look at this article that ECM sent me from National Review, which talks about Obama’s promise that you will be able to keep the medical coverage you have. Is Obama telling the truth? Can pigs really fly just by sheer belief and pixie dust?

Excerpt:

Obamacare would forbid insurers from basing rates on the individual health of their customers in any community. It also would force issuers to cover people who refuse to buy insurance until they get sick. These and Obamacare’s other complexities and contradictions would make insurance pricier, as would a $149.1 billion, 40 percent excise tax on high-value “Cadillac plans.” Thus, some employers would save money by paying fines after de-insuring employees. Workers who cherish their health plans then would find themselves dumped into the government-run Health Insurance Exchange.

“Some smaller employers would be inclined to terminate their existing coverage,” explained a December 10 memorandum by Medicare’s chief actuary, Richard S. Foster. He added: “The per-worker penalties assessed on non-participating employers are very low compared to prevailing health insurance costs. As a result, the penalties would not be a significant deterrent to dropping or foregoing coverage. We estimate such actions would collectively reduce the number of people with employer-sponsored health coverage by about 17 million.”

Even more ominously, Obamacare would require employers to provide federally approved coverage. Obama considers “meaningful” plans those at least as generous as the Federal Employees Health Benefits Program.

“Obama’s definition of ‘meaningful’ coverage could eliminate the health plans that now cover as many as half of the 159 million Americans with employer-sponsored insurance, plus more than half of the roughly 18 million Americans in the individual market,” says Cato Institute policy analyst Michael Cannon. “This could compel close to 90 million Americans to switch to more comprehensive health plans with higher premiums, whether they value the added coverage or not.”

It’s not just elective abortions that we’re going to be paying for whether we want them or not. In some countries with socialized health care you can pay for breast enlargements (UK), sex changes (Canada), in vitro fertilization (Canada), etc. And these elective surgeries take up money from the other vital services. Obama can make it such that every plan has to offer those coverages.

So, those who don’t use such elective services end up encouraging them, even if they have moral objections to those services. When the government subsidizes something, more people choose it. Won’t Planned Parenthood be pleased with all that new revenue? I’m sure they’ll think of something to do with all that money. Maybe a nice political donation?