Posted on 03/28/2010 6:39:47 AM PDT by GVnana
The health care bill that passed this week offers subsidies to people with low income so they can afford health insurance. To help pay for those subsidies, people with large incomes will have higher tax bills.
It sounds like a rout for Robin Hood, but President Obama and Congress ultimately spared one big tax break — the health savings account — that Republicans love and senior members of George W. Bush’s administration had championed. In fact, the legislation makes it likely that many more people will take advantage of the accounts by the middle of the decade, keeping even more money out of the hands of the government.
Consumers were able to sign up for H.S.A.’s beginning in 2004, though similar accounts had existed before that. When you deposit money into an account at a bank, you pay no federal income taxes on the money you deposit, it grows tax-free in the account and there’s no levy on earnings once you tap into the account for qualified expenses. It’s a rare triple play in the world of tax breaks
(Excerpt) Read more at nytimes.com ...
I believe this is one of the concessions the Republicans managed to wrangle out of Obama during the Blair House session.
I've been informed by my insurance company that my premiums will be going up by $50 a month, but "we now cover preventative care!"
My policy already covered a complete annual physical, GYN exam, and mammograms so what this "preventative care" will be... I dunno.
Republicans and conservatives love it because of the personal and individual responsibility it requires to save for one's own future needs without any dependency on fedopus. More than anything, that defines the difference between Dem and Rep, lib and conservative. So the Times had to get a nasty sideways swipe in at HSAs.
They spared this now,probably in the hopes of getting a pubbie or two on board. With all the negative press following the passing you can bet they’re looking at ending the HSA tax break.
You will get a monthly newsletter describing a healthy diet, how to exercise on a regular basis, the importance of adequate fluid intake, the importance of getting out doors and some sunshine etc.
But it includes the 10% tax on indoor tanning and new 20% penalty on money taken out of a health savings account and used for non-medical purposes. Other line items: lowering the ceiling on H.S.A. deductibility, and eliminating a tax credit for “cellulosic biofuel.”
There's always been a penalty for using the savings account funds for purposes other than medical expenses.
I just wonder how much they have or will tinker with the definition of "medical expenses." Things like chiropractic, massage, vitamins, etc. will probably get the axe since they don't fit the corporate medicine model.
So what was the old penalty amount?
THAT is exactly how they will get rid of HSAs....by dictating minimum insurance coverage that will drive the cost up, forcing people out of it.
Having a high-deductible plan will NOT be one of the options dictated by Washington DC.
Uh, ur, I’m not sure. Never got hit with it. 10% I think.
[So the Times had to get a nasty sideways swipe in at HSAs. ]
If HSAs still exist, maybe this is a way to neuter the whole healthcare bill. Just let the Dem bill sit there like a rotting corpse, but give people a way to opt out. If you can’t repeal it, then subvert it.
My policy already covered a complete annual physical, GYN exam, and mammograms so what this "preventative care" will be... I dunno.
Just a guess here... but "preventive care" may mean that your extra $50 goes into your insurance company's new monthly donation to the Democratic National Committee.
Racist tax on white people, pure and simple.
I agree with you. If I lose the coverage my employer provides, I will go to a HSA. It’s the only thing that makes sense.
As I recall, Robin Hood stole from the King's crooked agents and gave back to the people.
And regardless of his motives, he was still a thief.
Yes, and in return I get a monthly flyer telling me to brush my teeth!
the times
Health reform legislation takes rebates away from Indiana Medicaid
New drug rules to cost state $25 million in 2011
By Dan Carden - dan.carden@nwi.com, (317) 637-9078 | Posted: Sunday, March 28, 2010 12:05 am
INDIANAPOLIS | While the most costly provisions of federal health reform won’t take effect until 2014, state officials determined Indiana’s budget will pay a price starting this summer.
That’s because the new health law takes money from prescription drug rebates currently paid to state Medicaid programs and redirects those funds to the federal government.
As a result, Indiana will lose $25 million during the 2011 budget year, which begins in July, and as much as $400 million during the next decade, said Anne W. Murphy, secretary of the Indiana Family and Social Services Administration.
“This is the first of many costs Hoosier taxpayers will feel as this federal legislation becomes effective,” Murphy wrote in a letter sent Friday to Ryan Kitchell, director of the Indiana Office of Management and Budget.
Kitchell forwarded Murphy’s letter to lawmakers on the State Budget Committee, including state Sen. Karen Tallian, D-Ogden Dunes, warning committee members there will more bad budget news to come.
“There is still a lot of work to do to evaluate the extra costs imposed on Indiana taxpayers, which will eventually be in the billions of dollars,” Kitchell said.
According to Murphy, Indiana has done better than most states in negotiating favorable rebates from drug companies. This has “enabled Indiana to capture rebates well beyond the minimums established by the federal government,” she said.
But now that the federal government will receive the rebates instead of states, Indiana will lose more money than other states, Murphy said.
http://nwitimes.com/news/local/lake/article_d891c742-c19b-5a8a-89d5-45066ccc338b.html
“To help pay for those subsidies, people with large incomes will have higher tax bills.”
Wow, I can’t believe this simple truth made it past the Time’s editors.
Truly, I’m astonished.
Ah, the unintended consequences of the statist utopia!
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