There are so many things in life that are commodities. From the food we eat, the roof we live under, the car we drive, and the schools our children attend, and all the way to the healthcare plans we choose for our families…or choose not to choose. Yesterday one of our sister sites, Dallas Moms Blog wrote an article on the ABC’s of the ACA (Affordable Care Act). Now we aren’t ones to get caught up in the mumbo jumbo of debates {especially political}, okay we are but we try our best to curb them; however, we thought their article was extremely informative, given light of recent events, regardless of how we feel about the issue. So maybe you’re like me and you don’t know a ton about the ACA {unless of course you have a father like mine who keeps you constantly updated on what’s going on in politics}… what’s his name again, dad? Nick Romney? Just kidding 🙂 Now honestly peeps I’m not really overly passionate {maybe I should be} about this subject so while we welcome {really I’m jumping up and down hoping we get lots of feedback} all of your comments, please know that these are just some of the facts.
Exactly how can this new Affordable Care Act affect a family?
- O’er the land of the free: This bill is forcing us Americans to buy something whether we feel we need it or not. Sure we are “forced” to have car insurance, but somehow it’s not quite the same. If you don’t want to pay for car insurance, don’t buy a car…ride a bike! If you don’t want to pay for healthcare coverage what do you do? You’re choices are to be taxed or die that’s really about it. Sure the new healthcare bill definitely offers pros and cons depending which side of the fence you fall on, but the fact remains that a healthy individual will be required to buy health insurance or risk being taxed. Many families would rather decline health benefits to save the family money, but now that will not be an option. How will this affect veterans that are provided healthcare through the Veteran’s Administration? Will they be forced to pay for healthcare too or risk being taxed? I’m honestly not sure where they fall, but they too will be affected in some way, I’m sure.
- Taxes: Americans will now be taxed $695 or 2.5% of their annual salary {whichever is greater} if they don’t purchase healthcare coverage. That means a healthy working employee that makes 90k a year will have to fork over $2250 at the end of each year if he/she chooses to forego healthcare coverage. Yes, the plan includes a hardship exemption for poorer Americans, but it’s a fine nonetheless for the vast majority of the population.
- Flexible Spending Accounts: If you like to participate in the flexible spending account offered, the maximum amount you can set aside for healthcare costs, pre-tax, will be reduced from $5000 to $2500. I know my husband and I were planning on taking advantage of the this so that my hubs could get the lasik eye surgery at some point.
- Medicare Tax: A 3.8% surcharge will be imposed on investment income for individuals making over $200,000 and couples making over $250,000.
These are just a few of the many facts out there in how this can affect a family. Good or bad, the new health care bill is going to affect every single one of us in one way or another. No longer is healthcare a commodity, but instead a right, a right we all have to pay for. How is the new bill going to affect your family?
I fall on different sides of the fence on lots of issues, so not really trying to make a red or blue statement here. BUT one thing I know I don’t want is government being in my business (both personal and small biz). Unfortunately this new legislation will greately affect small business and thier employees. I have to weigh providing benefits to people who really need it OR not give it to them since now the goverment will make them get it themselves. The fee’s to provide healthcare are going to be so large it may drive lots of biz owners to force employee’s to be on the government plan (which will not be primo service). You’ll start to see A LOT of businesses stop offering or limiting insurance coverage since now you HAVE to get it yourself or be penalized. MORE taxes (both personal or biz) can kill a small biz like mine. It makes me feel like it’s not worth it sometimes and trust me, lots more small business owners feel the same way. And what would America be like without small biz! Either way, i’m gonna get fined/taxed for going out everyday and providing jobs, working hard, and doing something I love. Government should NOT tell us how to spend our money. What happened to our simple freedom to choose.
Thank you for your opinion, Xaviera! I hadn’t even considered how it would affect you as a business owner…fact #5!
Regardless of the position one takes, this is a tax on all U.S. citizens and an individual mandate. You are forced by the federal government to purchase a commodity, which has never been done before. What’s next. This law, if it goes into effect will break this country. Even the OMB says its unaffordable.
Great blog Allison. Thanks for bringing this to an open discussion.
Thank you, Charly 🙂
The mandate, requiring every American to purchase health insurance, was a CONSERVATIVE idea to begin with. The Heritage
Foundation submitted a proposal called “Assuring Affordable Health Care for All
Americans,” in 1989 which included a provision to “mandate all households to
obtain adequate insurance.” In 2006, Republican presidential candidate
Mitt Romney, who was then governor of Massachusetts, signed off on a law
requiring individuals of the state to purchase health insurance. He said then:“With
regards to the individual mandate, the individual responsibility program that I
proposed, I was very pleased that the compromise between the two houses
includes the personal responsibility mandate. That is essential for bringing
the health care costs down for everyone and getting everyone the health
insurance they need.”
Gov. Romney no says that if
elected, is going to repeal the Affordable Healthcare Act and replace it
with…the Affordable Healthcare Act…only this time WITHOUT the MANDATE. FYI: The
MANDATE is the part that makes the millionaires and billionaires pay in their
fair share. In other words, he wants you to elect him, so he can get himself
and his millionaire and billionaire friends out of helping pay for the
Affordable Healthcare Act.
oops..typo should read: Gov. Romney now says that if
elected, he is going to repeal the Affordable Healthcare Act….
Romney’s top advisor says that Romney’s individual mandate was a PENALTY, not a tax, echoing the Obama administration. I suppose Romney will
come out and flip-flop his way out of this by claiming the individual
mandate is a penalty on the state level, and a tax on the federal level.
The purpose of health insurance is to spread a highly variable cost over a
large group so that the burden of cost is evenly distributed over time and its
members. The larger the group the more evenly it is spread. One of the reasons medical costs are so high
is due to uninsured individuals who must use emergency rooms for their health
care needs. We end up paying for them
ALREADY through higher medical costs, and consequently higher insurance rates.
The law may not be perfect but it’s a start.
Liza answered it much better than I did!
illegal’s will continue to be a sizeable burden on
healthcare costs— this will not stop people from using the emergency room as
a first resort. I’m all for everyone having a baseline amount of healthcare—-
but when the government gets involved you can be sure of 3 things—- 1. it
will cost the ‘funders’ triple what they’re telling you today 2. tons of
loopholes will be created by greedy lobbyist (if not already) 3. every process
will be painstakingly slow, archaic, ‘so 2009’ and reformed and reformed and
reformed… The key component you’re missing here is that government mandated
healthcare will not make healthcare better- it makes it more affordable/accessible
for some no doubt, but will healthcare for our children will not be higher
quality because the government has once again squandered private enterprise.
Point is to every supporter— a large percentage of working
families really don’t need the ACA- unfortunately it’s all the other ‘classes
of folks’ & some, honestly are not to be blamed that they either cannot
afford healthcare or our government wants to make it affordable for them. In
the end as Charly & Xav have proclaimed ‘Nothing is free & it’s usually
‘middle America’ who pays & we will I can assure you of that.
You took my thoughts and said it much better than I could have. I agree that changes need to happen and health care should be available to all, but the more the government is involved and has a say in how we live our lives the less control and free we are. I am not comfortable with that.
My husband and I have private healthcare since we married 7 years ago. It is expensive, but we make it work. My biggest complaint would be that with private healthcare you cannot get maternity coverage, so I have to pay full price to have a baby. That is costly but there are worse things I could complain about.
Sadly too many people believe that our government has “the people’s” best interest at heart and that is just a big fat lie. There are so many problems with our government that there isn’t enough time to discuss it.
I also think everyone should be taxed the same percentage…regardless of what they are being taxed for. It shouldn’t matter how much money you make a year, if you make $30,000 or $300,000 a year. The people who make more will pay more, but everyone should pay the same percentage.
I disagree. Small business owners who have 50 or less employees are exempt. The mandate, not tax, is a penalty if one does not carry health insurance just like one gets penalized when they drive without a license or drive without insurance. We know that those folks don’t simply walk, they drive when they shouldn’t and face a penalty when caught. What many dont appreciate is that the more folks who have insurance the more likely it is that health insurance will become much more affordable. Plus, this new healthcare will NOT allow insurance companies to deny Any person because they have a pre existing condition. Furthermore, the new plan does not provide for a MAXIMUM amount of benefits over a lifetime. How terrible is it for those families who have a child suffering a debilitating and costly disease only to be turned down by the insurance company because they have exceeded the maximum benefits. Happens all the time and now that will be against the law. at one point or another everyone will need medical care. The point is to make it available at a more affordable cost. Plus! As moThers we get the added bonus of free preventive measures like mammograms. It may not be perfect but it is far better than what we have.
Looks like you and I were replying at the same time! I like your response better.
Liza I hate to tell you but you are totally wrong on businesses being exempt under 50 employees….it is cheaper for them to drop their coverage for employees and then pay the penalty rather than provide insurance for them….remember nothing is free….it is going to be paid for one way or the other by somebody. For you to say this is not a tax and is only a penalty is ludicrous…..the Supreme Court has already ruled on this as a tax…even Obama’s on councel argued that it was a tax….it amazes me how every liberal wants to spin this as something it is not….does the health care system need some adjustments?…..absolutely….but not this way….I, for one, do not want the federal government or in this case a panel made up of 15 individuals telling me whether I can have a procedure done…any way you cut it this is still a “death panel”….my medical decisions are between me and my doctor, not some governmental bureaucrat….I have already been told my premiums will double in 2014….if this is so great why is congress exempt from it?…also if our Health care is so bad why do people from foreign countries flock here for their medical procedures….I was on a flight from Atlanta to San Antonio and was seated next to a lady from Winnepeg…..she had breast cancer and could not get treatment in Canada for six months….she got it immediately in the U.S….one more time this country can not afford this….all economists agree this will bankrupt this country in the next 10 years
Sounds like you’re getting your information from Sarah Palin, Charly.
The Independent Payment Advisory Board (IPAB) is primarily
charged with helping to reduce the rate of growth in Medicare spending — a goal
that both parties say they want to achieve. The IPAB, made up of 15 experts
subject to Senate confirmation, would also make broader recommendations about
controlling health costs.The health-care law, by the way, explicitly says that
the recommendations cannot lead to rationing of health care. (page 428 of the law.) The law also limits recommendations
that would change benefits, modify eligibility or increase Medicare beneficiary
cost-sharing, such as deductibles, coinsurance and co-payments. This is NOT a death panel.
BTW, “death panel” scare tactics are sooo 2009.
liza – it will affect businesses with 50 or less employees. One major reason being (as i mentioned in my post) the cost of private healthcare offered by employers is going up so much so that small businesses cannot afford it. therefore they will stop offering it since now you can just get on the gov. plan (and have you seen the gov plan- you can hardly choose the dr or location of your mammogram – to Charly’s point). Regulations that are soon to follow this one, will further drive the private healthcare system to charge even higher rates therefore creating a system where employers can’t afford to keep anyone on their plan. SO they will take the gov. fee & tax vs. providing private healthcare. i’ve always thought of benefits as a way to lure and keep great talent. It’s a great thing to offer to employees. but how can we offer it if it puts them in the red… SURE huge companies can carry that cost, but small biz certainly can’t. the system needs to change – for sure – i just don’t believe this is the best way.
Wow! I’m loving this healthy discussion. Honestly, I haven’t been following this too closely (it’s Bachelorette season after all) and now I wish I was a bit more informed. I’m certainly for something that is going to provide adequate healthcare to more people. I think I read in the comments below, those of us that ARE insured are ALREADY paying an arm and a leg to help cover the costs for those that don’t, so now theoretically those costs should go down–I agree with that. I’m also happy to read that dependents can stay on their parent’s insurance until the age of 27 and that insurance cannot deny someone coverage due to preexisting conditions. When Matt and I got pregnant with Caroline, one of the main reasons (other than I didn’t want to be a fat bride) we didn’t tie the knot immediately was because I could not confidently switch insurances without my pregnancy potentially being considered a preexisting condition. I spoke with two insurance representatives who were unsure what the decision would be. I ran the risk of Sweet C not being covered and thus would have had a large bill come July 2010.
I also think the fact that John Roberts, appointed by Bush (conservative), upheld the ACA means it’s legit. (like my official language? hah!)
Again, I haven’t been following it TOO closely, but from what I know on the surface–I don’t see how it’s the worst thing.
I know this is an incredibly controversial topic, but this article only seems to highlight the negative. Everyone, from the most conservative to the most liberal, should be educated on this subject thoroughly. It effects our families, so we should be having clear, open conversations about it. Please take some time to do some research on all aspects of the law, not just the ones that fit a particular political view.