With the health care debate heating up in the Senate this week, perhaps it’s time to analyze what proponents of Obamacare tell us this legislation will do, and compare that with what the legislation actually will do.Rhetoric: the United States spends far too much of its gross domestic product on health care, and, once Obamacare is fully implemented, our spending on health care will decline.
Reality: nothing could be further from the truth, and this legislation ensures that will happen.
Although Obamacare will not take effect until 2013, you will see the cost of your health care increase immediately. The legislation pending before Congress provides that beginning in 2010 there will be an annual tax of $2.3 billion imposed on drug manufacturers and importers (page 2010, section 9005), an annual tax of $2 billion imposed on medical device manufacturers (page 2020, section 9009), an annual tax of $6.7 billion imposed upon health insurers, including not for profit health insurers, (page 2026, section 9010), and a 5 percent tax on the cost of any elective cosmetic surgery (page 2045, section 9017).
Unless the legislation also allows drug manufacturers, medical device manufacturers, and insurance companies to print money, which it does not, this $11 billion annual increase in taxes has to come from somewhere, and, you are that somewhere. What you currently pay for health insurance, prescription drugs, wheel chairs, crutches, artificial knees, walkers, canes, and virtually anything else medically related you can think of, will increase by a collective $11 billion in 2010, and continue into the foreseeable future.
Congress, of course, will pretend to be shocked and amazed when this happens, and, profess that was not what they intended, but, the reality is unless Congress thinks these industries have the power to print money, there is absolutely no other logical outcome.
All things being equal, the amount of money spent in the United States on health care will not only not decline under this legislation, it will actually increase by at least $11 billion annually, plus, of course, whatever is spent on the “botax”.
I’m not sure whether Congress thinks we are stupid, or thinks we will simply fall asleep reading this “opus” before we get to page 2010 of the Reid version of Obamacare.
Added by Steve: Here’s a post from Oct. 15 where I’ve detailed additional taxes that will be passed on to consumers from the Senate Baucus bill that was supposed to be dead. Lots of taxes carried forward from that legislation.