CBO STUDY CONFIRMS THOSE WITH INCOMES BELOW $59,000 WILL PAY PENALTIES
 

Washington, Apr 23, 2010 -

“A recent study by the Department of Health & Human Services finds that the recently enacted healthcare bill will increase healthcare costs instead of decreasing them as supporters claimed,” stated Rep. Cliff Stearns (R-Sixth).  “In addition, a study by the nonpartisan Congressional Budget Office (CBO) finds that the bill will impose new costs on the middle class, contradicting the President’s claim that only those earning more than $250,000 a year will pay more.  These reports confirm two of the many major reasons I opposed this bill – it will increase the costs of healthcare and push federal deficits higher, and it will take more money out of the pockets of middle-class families.”

A report from the U.S. Department of Health & Human Service’s (HHS’s) chief actuary for Medicare states that the bill will increase the cost of healthcare in the nation instead of bringing them down as claimed by the bill’s supporters.  Said Stearns, “The report projects that national health expenditures will increase by $311 billion during fiscal years 2010-19 due to the bill.  In addition, it projects that 14 million workers will lose their employer-sponsored health plans instead of the 8-9 million earlier projected.”

The chief actuary’s report goes on to state, “Some smaller employers would be inclined to terminate their existing coverage and companies with low average salaries may find it to… their advantage to end their plans…”Continued Stearns, “While increasing health costs, the law will also push millions of workers out of private health plans and into government-sponsored plans.”

The healthcare legislation mandates that all citizens (excluding some seniors, member of Indian tribes, those in prison, and members of certain religious faiths) obtain health insurance or pay a penalty.This is the first time in American history that citizens are required to purchase a good or service provided by a private company.  According to the CBO study, about 21 million American will be uninsured in 2016, and most of them will be exempt from penalties.  However, the study projects that 4 million Americans will have to pay the penalty and 3 million of those paying penalties will have individual incomes below $59,000.  “These penalties are essentially a new tax, and they will cost over $4 billion and hit the middle class the hardest,” added Stearns.

Earlier this month, Stearns penned an opinion article pointing out the budget gimmicks in the healthcare bill and outlining how it will increase the cost of healthcare and federal deficits.  These two studies confirm many of the points made in that article.