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ParticipantSloppy reporting
[quote=CONCHO]The one that really confuses me is this one:
A new 40% excise tax, beginning in 2013, on high-cost health plans, defined as those providing coverage in excess of $8,500 for individuals and $23,000 for families. The House’s package of modifications includes higher threshold amounts and an initial effective date of 2018.
What does that even mean to provide coverage in excess of some amount? Does that mean you are covered for more than $8500/year? Seems pretty low to me.[/quote]
Besides the reporting using only the original Senate bill, and not the reconciliation bill, which will be passed and signed into law later this week, it changes a few words which also changes the entire thrust of the law.
The reconciliation bill changes the amounts to $10,200 and $27,500. The tax has nothing to do with benefits, only premiums. Insurance companies will pay a 40% excise tax on the amount of premiums that exceed those amounts. For an individual, a policy that costs $11,200 a year would be subject to a $400 excise tax, to be paid by the insurance company. Those taxes will be built into the premium cost, so for every premium dollar over the limit, the insurance company will actually raise their rates by roughly 67% to cover the tax. (A policy with annual premiums of $11,200 would be priced at $11,867. 40% excise tax on the amount over $10,200, or $1,667 would be $667. Insurance company ends up with $1,000 more in net premiums.)
ParticipantSloppy reporting
[quote=CONCHO]The one that really confuses me is this one:
A new 40% excise tax, beginning in 2013, on high-cost health plans, defined as those providing coverage in excess of $8,500 for individuals and $23,000 for families. The House’s package of modifications includes higher threshold amounts and an initial effective date of 2018.
What does that even mean to provide coverage in excess of some amount? Does that mean you are covered for more than $8500/year? Seems pretty low to me.[/quote]
Besides the reporting using only the original Senate bill, and not the reconciliation bill, which will be passed and signed into law later this week, it changes a few words which also changes the entire thrust of the law.
The reconciliation bill changes the amounts to $10,200 and $27,500. The tax has nothing to do with benefits, only premiums. Insurance companies will pay a 40% excise tax on the amount of premiums that exceed those amounts. For an individual, a policy that costs $11,200 a year would be subject to a $400 excise tax, to be paid by the insurance company. Those taxes will be built into the premium cost, so for every premium dollar over the limit, the insurance company will actually raise their rates by roughly 67% to cover the tax. (A policy with annual premiums of $11,200 would be priced at $11,867. 40% excise tax on the amount over $10,200, or $1,667 would be $667. Insurance company ends up with $1,000 more in net premiums.)
ParticipantSloppy reporting
[quote=CONCHO]The one that really confuses me is this one:
A new 40% excise tax, beginning in 2013, on high-cost health plans, defined as those providing coverage in excess of $8,500 for individuals and $23,000 for families. The House’s package of modifications includes higher threshold amounts and an initial effective date of 2018.
What does that even mean to provide coverage in excess of some amount? Does that mean you are covered for more than $8500/year? Seems pretty low to me.[/quote]
Besides the reporting using only the original Senate bill, and not the reconciliation bill, which will be passed and signed into law later this week, it changes a few words which also changes the entire thrust of the law.
The reconciliation bill changes the amounts to $10,200 and $27,500. The tax has nothing to do with benefits, only premiums. Insurance companies will pay a 40% excise tax on the amount of premiums that exceed those amounts. For an individual, a policy that costs $11,200 a year would be subject to a $400 excise tax, to be paid by the insurance company. Those taxes will be built into the premium cost, so for every premium dollar over the limit, the insurance company will actually raise their rates by roughly 67% to cover the tax. (A policy with annual premiums of $11,200 would be priced at $11,867. 40% excise tax on the amount over $10,200, or $1,667 would be $667. Insurance company ends up with $1,000 more in net premiums.)
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Participant[quote=Zeitgeist]I guarantee you, your costs are going up, not down. Please enjoy writing the check for those poor 30 million you and that idiot who signed the bill talk so much about. You all deserve each other.[/quote]
Probably right that costs will go up. My group plan costs have increased an average of 210% since 200, with some as high as 385% (almost 5 times over 7 years). That’s more that tripled. With slightly higher co-pays for both doctor visits and prescription drugs. So there’s the baseline we have to start with. If costs increase less than 30% a year, we’ve made progress.
Participant[quote=Zeitgeist]I guarantee you, your costs are going up, not down. Please enjoy writing the check for those poor 30 million you and that idiot who signed the bill talk so much about. You all deserve each other.[/quote]
Probably right that costs will go up. My group plan costs have increased an average of 210% since 200, with some as high as 385% (almost 5 times over 7 years). That’s more that tripled. With slightly higher co-pays for both doctor visits and prescription drugs. So there’s the baseline we have to start with. If costs increase less than 30% a year, we’ve made progress.
Participant[quote=Zeitgeist]I guarantee you, your costs are going up, not down. Please enjoy writing the check for those poor 30 million you and that idiot who signed the bill talk so much about. You all deserve each other.[/quote]
Probably right that costs will go up. My group plan costs have increased an average of 210% since 200, with some as high as 385% (almost 5 times over 7 years). That’s more that tripled. With slightly higher co-pays for both doctor visits and prescription drugs. So there’s the baseline we have to start with. If costs increase less than 30% a year, we’ve made progress.
Participant[quote=Zeitgeist]I guarantee you, your costs are going up, not down. Please enjoy writing the check for those poor 30 million you and that idiot who signed the bill talk so much about. You all deserve each other.[/quote]
Probably right that costs will go up. My group plan costs have increased an average of 210% since 200, with some as high as 385% (almost 5 times over 7 years). That’s more that tripled. With slightly higher co-pays for both doctor visits and prescription drugs. So there’s the baseline we have to start with. If costs increase less than 30% a year, we’ve made progress.
Participant[quote=Zeitgeist]I guarantee you, your costs are going up, not down. Please enjoy writing the check for those poor 30 million you and that idiot who signed the bill talk so much about. You all deserve each other.[/quote]
Probably right that costs will go up. My group plan costs have increased an average of 210% since 200, with some as high as 385% (almost 5 times over 7 years). That’s more that tripled. With slightly higher co-pays for both doctor visits and prescription drugs. So there’s the baseline we have to start with. If costs increase less than 30% a year, we’ve made progress.
Participant[quote=dbapig]
Why did ALL of the GOP in congress oppose it?[/quote]Is that a serious question? The party of NO. Had they been serious about health care reform there would have been logical discussion instead of fallacious claims about the content of the proposals. (six months ago there was a list posted here, supposedly written by a republican constitutional lawyer, of close to a 100 bad things in the original house bill. I read the entire bill. I posted a response to each one. 98% of them were out and out falsehoods. Death panels. Free coverage for undocumented aliens. Funding for ACORN health clinics. The other 2% were either partially true or accurate but absurd complaints.)
They made a mistake. As a party they believed that politically, an Obama failure meant a Republican victory. This time, hyper-partisanship did not work. They failed. They were wrong.
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