Thought leadership on the use of innovation to solve health care access, quality, and funding issues.
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Senator Orrin Hatch (R-UT), Ranking Member, Senate Finance Committee and Representative Erik Paulsen (R-3rd, MN) have introduced the “Family and Retirement Health Investment Act of 2011.” The legislation makes a number of changes to strengthen and expand health savings accounts (HSAs) and flexible spending accounts (FSAs). Specific provisions in the legislation would: allow a [...]
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The report highlights health insurance premium increases in states across the country and comes shortly after Anthem Blue Cross announced plans to raise rates on its California customers by as much as 39 percent, even after its parent company took in a profit of $2.7 billion in the previous quarter.
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The New York Times tackled this issue yesterday in an article by Robert Pear that attempts to explain how technically it might be possible for the Senate bill to be able to reduce the deficit by $132 billion in the next 10 years while adding nine years to the life of Medicares hospital trust fund.
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At the heart of this is the fact that health insurance plans will be unable to innovate.
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“Americans don’t want taxpayer funding for abortions and are opposed to a first-ever, mandatory abortion tax. Knowing this, the bill’s proponents have rushed it through the Senate at a time when Americans are focused on celebrating Christmas with their families.”
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The key point is that the savings to the HI trust fund under the PPACA would be received by the government only once, so they cannot be set aside to pay for future Medicare spending and, at the same time, pay for current spending on other parts of the legislation or on other programs.
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Failing to adjust the contribution cap will cause the value of a $2,500 FSA to plummet to less than half its worth within a decade.
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Below,to according Consumer Watchdog, is a list of the most deceptive sound bites, and the longer truth of the reform plans.
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While some policy analysts expect the cap would prompt employers to make major changes to cut back on excessive health care spending, its important to note that not all the plans that would be subject to the tax are particularly generous.
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For the Medicare program, the increases over the next 25 years are even more dramatic.
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