Top 5 Surprises in Obamacare
The more the American people have learned about Obamacare since it was passed the more they dislike it. And with good reason. Here is a list of some recent surprises buried in the 2,300 pages of legislation.
1. Beginning in January 2012, businesses are required to file with the IRS for every business to business transaction over $600. This includes all transactions, not just health based ones. (Section 9006).
2. A new program (the Community Living Assistance Program) was established that is woefully underfunded by the bill and will eventually require much more money than allocated. (Section 8002).
3. As of January 2014, states must expand Medicaid coverage to all individuals under the age of 64 with family incomes at or below 133% of the federal poverty level. States already do not have the resources to provide adequate Medicaid coverage and this law will add millions more to Medicaid rolls. (Section 2001, as modified by 10201 and H.R. 4872; Sec. 1004 and 1201).
4. Beginning January 2011, individuals are not allowed to use Flexible Savings Accounts, Health Reimbursement Accounts, and Health Savings Accounts to purchase over-the-counter medicines. The law also caps annual contributions at $2,500, down from $5,000. Many Americans (especially younger ones in relatively good health) rely on FSAs, HRAs, and HSAs to help pay for healthcare. This law makes these consumer-oriented tools that encourage smart shopping less convenient and provides a perverse incentive for individuals to buy expensive prescription medicine instead of over-the-counter alternatives. (Section 9003).
5. Verizon, AT&T, Caterpillar and other companies publicly acknowledged that the tax structure of the new law actually encourages companies to stop providing coverage for their employees beginning in 2014. (Section 1003).
Furthermore, despite promises from President Obama, Nancy Pelosi and the Democrats that the bill would not add a dime to the deficit, the most recent CBO study confirms that the projected deficit has increased by $71 billion due to newly enacted legislation (namely healthcare reform). Read more here.
H.R. 4972: A beautifully crafted 40-word solution
But as expected, House Democrats have tied up the legislation in committee to avoid voting on it before the fall elections.
Excerpts taken from Newt Gingrich’s August 25, 2010 E-mail Newsletter