Healthcare what is the real cost of Socialized Healthcare.
January 24, 2010
Lets list the real cost of the healthcare reform bill for the American people. Let’s look at the numbers not the one liner bumper sticker statements. This should give us the real picture of what our government is attempting to do. First point is no benefits paid out and no one covered till the year 2013. The taxes and the costs to the people start as soon as the bill is passed in 2010. How is that good for anyone? It’s not good for people who are uninsured or for people who are insured.
The statement of Nancy Pelosi was that 6 million people would be covered immediately if the healthcare is passed. It is True 6 million people would be covered immediately, but they have to purchase the insurance for themselves. The cost of 6 million people at an average cost of approximately $3000.00 for each one to buy their own policy is $18 billion a year. These are young people up to 35 years old who will be forced to buy the insurance. If they don’t buy the insurance they get a fine. If they don’t pay the fine they go to jail and get a bigger fine of up to $25,000. This is the kind of misleading statements the progressives and liberals use all the time. This is a big bonus to the insurance companies, not for the people. This is really a tax on our healthy young people to pay for older unhealthy people. These young people are at the beginning of their careers and at the lower end of the wage scale. A lot of these young people are trying to support new families and now the taxes they pay already aren’t enough Pelosi wants them paying even more.
Insurance companies will have to cover preexisting conditions. What will that new regulation cost the people? The insurance companies say $1000.00 per person. If Healthcare is passed, it is a mandate to the insurance companies they must comply. The largest part of the population is covered by some kind of private health insurance coverage. Once again the people have to pay for this new regulation that the government will impose on the insurance companies. The people will once again have to pay, not the government. 187 million people are covered by private health insurance of some kind. If the cost goes up by $1000.00 for each person the total cost to the people will be 187 billion each year. Now we add the 18 billion above from 6 million being forced into getting insurance and we have a total of $205 billion in unneeded additional financial burden on the American people and while we are in a deep recession. For every dollar paid for the new insurance or for the existing insurance coverage the private sector economy will shrink a dollar. This is only the beginning.
There are 14 new taxes in the Nancy Pelosi healthcare reform bill. This is a tough number to get a total on. Even the congressional budget office says they can’t score this properly because they don’t have enough information. Here is a partial list of new taxes we can total up and add to the ones above that no one is counting and looking at the big picture doing the math to make a final conclusions based on the math and not bumper sticker slogans like lip stick on a pig. If any bill ever was a pig this is it. This is only a partial list of the new taxes. Unions are excluded from the high-end health insurance tax.
Tax on high-end health insurance plans: $149.1 billion
Capping flexible spending accounts at $2,500: $14.6 billion
Fees for drug makers: $22.2 billion
Fees for medical device makers: $19.3 billion
Fees for health insurance companies: $60.4 billion
Higher floor for deducting medical expenses: $15.2 billion
Higher payroll tax for top earners: $53.8 billion
Tax on cosmetic surgery: $5.8 billion
Total here in this group is $340.4 billion. This is most of the larger taxes in the healthcare reform bill, but there are a total of 14 Tax Increases in Senate Healthcare reform bill totaling $370.2 Billion. Add that to the total of $205 billion and this gives us a grand total of $575 Billion. Keep this very important fact in mind, this is without one additional person being covered by any government paid healthcare until 2013. This is being done while we are on the brink of an economic disaster. This would seem to be either the plans of someone who is intentionally trying to destroy the country economically or it’s the plan of someone who is clinically insane. Wait there’s more, read on. By the way everyone on those taxes to the drug companies or fees for health insurance companies will be passed on in the cost of doing business and push the cost of health insurance up, not down.
Even with all the above taxes and cost and the cost from higher premiums from new regulation then we have to add the part where it’s going to cost in additional deficit spending added to all the above and added to all the other costs to the American people. The congressional budget office says it will cost just a little more the 1 trillion over a 10 year period or 100 billion a year in deficit spending. Add that to the totals above and then we have a cost of $675 Billion. This bill is an economic disaster more than it is a Healthcare disaster. Then we have to deal with cap and trade or the so called energy bill. Total healthcare bill $675 Billion in 2010 and every year after that
Now we have to look at the 500 billion in Medicare cuts. Do you really believe they’re going to cut 50 billion a year from a program that grows by 30 billion a year and we are getting ready to add a large number of baby boomers and that started 2 years ago? The difference between the growth and the cuts is an 80 billion swing in health insurance cost.
I have heard people say we should take all the profits of all the health insurance companies. What are those greedy insurance companies doing making a profit off my health care? What do we have if we stripped away the 13 billion dollar insurance company profits? The obvious answer is it wouldn’t make much of a difference. The figure represents six-tenths of 1 percent of all health care spending. Profits wouldn’t necessarily be eliminated or reduced by the creation of a public insurance option, so that’s not the answer either. If insurance companies were not allowed to make a profit then there would be no health insurance in the private sector. No privately held company is going to operate at a zero profit. If you look at the huge amounts of money needed above just to prop up the healthcare system then all insurance company profits will do nothing to help. What it would do, is leave 185 million Americans with public health insurance, with no health insurance at all. Then the government will have to provide it and that’s what they really want to do. The problem is there is no government insurance in place that can handle the 187 million people. Even with the public option the doctors won’t take Medicare now and it will get much worse when all this becomes law.
Here is the bottom line immediate cost analyses. The total cost in taxes and additional premium in first year after it becomes law. When adding up $205 Billion in increased insurance premiums, $37 Billion in taxes on Business each year. The total is $242 Billion in direct and immediate cost to the economy. I calculate that 30% of that total dollar amount will be the amount that business pay out in labor if the public pays the higher premiums. All this money will go missing from the overall economy. It will be like the money just that disappears into thin air. The money is not buying an additional product or service; it is just paying more for the same thing. Please stay with me on this I want to show you the math, rather the just make a statement that this will cost 1.5 million jobs a year.
The 30% being labor base on $242 billion in direct immediate cost gives us a gross dollar labor loss figure of $72.6 billion. Each job cost based on the average national wage is $18.00 an hour base on a 40 hour work week times 52 weeks a year. This totals $37,440 a year for each employee base on the average wage. Also the number doubles if the people that lose their jobs are all at the lower end of the pay scale. Like minimum wage earners at $7.00 or $8.00 an hour.
Then adding in the cost of labor to an employer and they are workman’s compensation insurance, unemployment insurance liability insurance averages federal unemployment and match of social security and Medicare totals an average about 25% that would be $9,360.00 a year added to the gross wages paid. This gives us a total cost of $46,800.00 per employee. Now to get the final number we would divide the per employee cost into $72.6 billion and we come up with the number of jobs lost every year once this new health care is in place. The answer is 1,551.282 jobs lost each year from healthcare legislation. That’s a job loss of 129,273 each month once this new healthcare bill is in place. Doing this while we are still jobs negative is not a good idea.
I am going to do a webpage on the total cost of the healthcare reform bill. The climate change bill otherwise known as cape and trade before they changed its name. Then add into that the amnesty and illegal immigration problem. This should prove that we are dealing with one of two things the mentally insane or a group of people that by design are planning to destroy the country economically from within the government. These are the three major issues that Americans face and they will all come up by the November 2010 elections. I believe the healthcare reform bill and all these other bills will be passed by the liberal and progressive democrats that control all three branches of our government. We do need a healthcare reform bill that will bring cost down but this senate bill is not it.
I did cost analysis for 32 years these numbers are very close to how the economy will be affected. I have been following the congressional budget office and the Federal Reserve for more than 32 years. My estimates are much more accurate then there’s. There are 800 economists that work at the Federal Reserve at least that’s what they call themselves. I am not bragging but the congressional budget office came out less than a month ago and gave a total deficit number for 2010 and said it would be $1.3 trillion. Just a few days ago it was revised it to $1.6 trillion. That’s a $300 Billion mistake in 30 days. There not very reliable are they? I estimate that the deficit for 2010 will wind up being at least 1.8 trillion for 2010. Let’s see who is right.
healthcare and Liberals