Friday, October 30, 2009

More on H.R. 3962

Page 297:

OK, here we see the 2.5% tax on adjusted gross income for folks who don't get health coverage. It applies to the individual or family if there are dependents. Interestingly, the tax penalty is tied to the average premium amount for a "qualified" plan insofar as it can't exceed it.

Here's what I don't get. So far in my reading I don't see anything that reduces the premiums we see today - on the contrary, as I pointed out in my last post there are ample reasons to believe that premiums will rise and the CBO is of the opinion that the "public option" pricing will not be any cheaper than private plans and may indeed be up to 25% more.

Soooo....a Hobson's choice. You either pay for a qualified plan or get nailed by a tax penalty that may or may not be less than the premiums but will be several hundred bucks for a family with an AGI of 40K or so.

So this doesn't provide a mechanism to get affordable healthcare for the disadvantaged, it mandates that all must get insurance regardless of the affordability or face a penalty.

And this is how we get the uninsured insured - ripping their arms off by mandating that they pay for a plan without (to be fair, so far in my reading) actually helping them do so.

Oh, and BTW, as I continue reading, this apparently sets up a whole new area of IRS administration since the proof of insurance is filed with the tax returns.

Still reading.....

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