It segments Americans into categories by economic status — families and individuals by income, and business size by payroll and number of employees. Affordability of premiums, level of responsibility, and eligibility for subsidies vary according to which box one fits into.
The heaviest tax burden falls on those considered wealthy, based on absolute income in dollars. The blended bill levies a 5.4% income tax surcharge on singles with an adjusted gross income greater than $500,000 (i.e. a surcharge of $27,000 or more). These thresholds are not indexed for inflation and could quickly move down the social scale.
Because of stepped, non-indexed thresholds, businesses that expand, add an employee or simply keep up with inflation could face a sharp increase in their “shared responsibility.”
The effect of the value of the dollar on this plan is critical. The 2009 federal deficit is greater than 40% of expenditures and has thus crossed what some consider the tipping point for hyperinflation.
The word “penalty” occurs many times regarding failure to report, or inaccurate reporting, of a vast array of information related to level of responsibility or compliance with requirements.
The elite academics will be pleased by the inclusion of their favorite panaceas such as “coordinated care,” accountable care organizations, quality measures, free preventive services and community health centers, all of which are expensive and may not produce future benefits.
HR 3962 enables the micromanagement of both insurance and medical services.
The mind-numbing detail in the bill is just the prologue, as more bureaucratic rules will follow.
It’s heartbreaking to note the above. Sensible reforms are needed. But let’s not throw out the baby with the bath water.
MICHAEL GLUECK is a Newport Beach resident.
