Ilovebenefits’s Blog

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Health Care: Will the Government Actually Be Able to Raise Revenues

Editor’s note: this from Greg Scandlen:

No Medicare Cuts?

Writing for Real Clear Politics, Robert Robb makes the obvious point that most of the offsets that are supposed to make the Baucus plan deficit-neutral will never be realized. The 35 percent (or 40 percent) tax on Cadillac plans, for instance, is supposed to raise $53 billion, but, “this is a slight-of-hand. The insurer will try to shift as much of the cost as possible to the employer, who will in turn shift as much of the cost as possible to the employee. The incentive, then, becomes to maximize health insurance benefits up to the point that the tax will be triggered,” and “in terms of producing revenue, it’s likely to bring in closer to zero than $53 billion.” Ditto with the scheduled 25 percent cut in physician fees in 2011. It will simply never happen.

SOURCE: Real Clear Politics


October 2, 2009 - Posted by | Federal Government, healthcare | , , ,

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