The Los Angeles Times (4/23,
Levey) reports, "The new healthcare overhaul championed by
President Obama may result in lower Medicare premiums for
seniors and a more sustainable Medicare program, according to an
analysis of the legislation issued Thursday night by independent
actuaries at" HHS. In addition, this analysis "suggests that the
Medicare program will remain viable until 2029 -- longer than
some earlier projections. Before passage of the healthcare
overhaul, Medicare had been projected to slip into the red in
2017." Nevertheless, "the healthcare law also will push up the
nation's total healthcare tab, as the federal government spends
more than $800 billion over the next decade to expand health
coverage to more than 33 million Americans, the analysts
concluded."
A brief AP (4/23)
story on the analysis says, "The first comprehensive look at the
health care law by neutral experts amounts to a mixed report
card for Obama's top priority during his first year in office,"
because the "report says that the law falls short of the
president's twin goal of controlling runaway costs. And it warns
that Medicare cuts may be unrealistic and unsustainable."
The Hill (4/23,
Cusack) also reports that the analysis "finds that the bill
President Barack Obama signed into law would cost $828 billion
over the next decade, while saving $577 billion." But, these
"projections do not take into account changes to the tax code
that have been enacted. The Congressional Budget Office (CBO)
reported that over the next 10 years, the healthcare package
would decrease the deficit." The Hill goes on to say that,
although the analysis "concludes that the healthcare overhaul
will reduce the number of the nation's uninsured from 57 million
to 23 million," it "raises several warnings about the impact of
healthcare reform." For instance, higher "demand for health
services could be difficult to meet initially with existing
health resources and could lead to price increases [and] cost
shifting." In addition, some employers may "stop offering their
employees healthcare coverage benefits."
The AP (4/23, Ohlemacher)
reports, "Nearly 4 million Americans -- the vast majority of
them middle class -- will have to pay a penalty if they don't
get insurance when President Barack Obama's health care overhaul
law kicks in, according to congressional estimates released
Thursday." These "penalties will average a little more than
$1,000 apiece in 2016, the Congressional Budget Office said in a
report." The AP adds, "Republicans have criticized the
requirement that Americans get coverage, even though the idea
was originally proposed by the GOP in the 1990s, and is part of
the Massachusetts health care plan signed into law in 2006 by
then Gov. Mitt Romney, a Republican." Meanwhile, "attorneys
general in more than a dozen states are working to challenge it
in federal court as unconstitutional."
Reuters (4/23,
Dixon) reports that Republicans have also criticized the
insurance mandate in the healthcare law because they say it will
harm some poor Americans. But, Democrats argue that many more
people will be insured because of the law. Notably, the IRS
commissioner stated recently that the agency would most likely
withhold the tax refunds of people who owe this tax, rather
seize their belongings, or assess fines.
The Washington Times
(4/23, Lengell) reports that "Rep. Pete Stark, California
Democrat and chairman of the House Ways and Means health
subcommittee, said Republicans are exaggerating the extent of
the penalty, adding that out of a population of 277 million
people, less than 1.5 percent will pay this assessment in 2016."
Stark stated, "Americans can opt to pay the penalty rather than
purchase health insurance, but it is their choice. ... There is
no penalty for people whose insurance would cost more than 8
percent of their income." CQ
HealthBeat also covers the story.
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