Republican Contin. Resol. Bill Isn't Good!

JimofPennsylvan

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Jun 6, 2007
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Senator Rob Portman appearing on one of the cable news programs today proclaimed repeatedly and dramatically "I don't know why the Democrats won't vote for the House Continuing Resolution Budget bill, H.J. Res. 125, there is nothing objectionable in it!" and I assume Senator Portman there was voicing the views of the Republican Senate caucus. Well Senator Portman I disagree with you the Democrats have objections and at least one registered Republican voter does. We object to the Republican Party using this continuing resolution bill (CR) to undermine America's Health Care System, every informed American with a conscience knows America needs to enact a major healthcare reform law to improve the current system which is in crisis but until Washington finds the character and the wisdom to pass such a law it is extremely wrong for Republicans to take a jack hammer and weaken the underpinnings of the current system.



The Republicans are doing this in the CR by taking money out of the system specifically the CR repeals the Affordable Care Act fee on Health Insurance Companies for the year 2019. This insurance company fee is fair and important, the federal government subsidizes people buying health insurance in the individual market because otherwise these Americans wouldn't have a prayer's chance of buying good health insurance and any Republican replacement law will de facto continue these subsidies and most importantly this insurance company fee helps pay for these subsidies and it is fair to ask insurance companies to pay because these subsidies help these insurance companies' customers buy their products and help lower the cost of these products. The money involved here isn't peanuts the revenue that would be coming into the federal gov't's coiffeurs from this fee for 2019 would be over $15 billion dollars and isn't it strange that Republicans left the fee in place for 2018 and put it back in place for 2020 both election years!



In the CR the Republicans are again undermining the financing of America's health care system by giving a two year moratorium on the Medical Device Tax. Repealing the 2.3 % tax for 2018 and 2019 not only adds up to the loss of a lot of money for the Federal Gov't but it is clear that in doing this the Republicans are trying to create a situation where the tax is permanently repealed because now when the two year deadline approaches the Medical Device Manufacturers will have a long list of negative consequences that will occur if the tax is allowed to be reinstituted and this will pressure lawmakers to kill the tax. The tax is fair again because the federal subsidies and expenditures help these Medical Device customers buy this industry's products so it is fair to ask this industry to pay a little of the federal gov't's expense in this matter. That being said the law should be changed to tax only applicable medical devices "sold" in the U.S. not manufactured in the U.S. there is no real good justification for taxing the latter!



The Republicans in the CR wrongfully extended the moratorium on the ACA's tax on high cost health insurance plans, the Cadillac Plan tax, out two years current law had the moratorium lasting through 2019 the CR would extend it through 2021. This is wrong because it is clearly an attempt to permanently kill the tax and the good policy behind the tax. The tax entails a 40% tax on the cost of these high cost health insurance plans above a cap which the government will set which will be the cost of a non-lavish plan and the employer or health insurance provider will pay the tax. The legitimate consensus is the taxing scheme is bad but responsible people should conclude the policy goal is good so the law should be left alone to pressure lawmakers to come up with a good taxing scheme to achieve the good goals. The good policy goals are that America has a doctor shortage and in some areas a medical testing capacity shortage so America shouldn't have health insurance plans that encourage health care use when it is not really necessary; plus health insurance premiums for employees are tax exempt it isn't really fair to all Americans that these select few Americans with these Cadillac plans are getting this great financial benefit of little or no copay and deductible and not having to pay taxes on such. The problem with the current Cadillac tax is that the yearly raising of the cap isn't tied to medical inflation but just regular inflation meaning it will penalize non-lavish health insurance plans in the near future plus cost looks at more than just premiums but also HSA contributions and cost of wellness programs the tax doesn't effect employees at all the system needs to prod employees to cooperate with employers to create insurance plans with copays that deter unnecessary use of Health Care. The law should probably be changed not to have a tax but make the excess amount taxable income to employees and a nondeductible expense for employers only look at premiums and put the cap on a medical inflation tether!
 

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