who will pay for universal health care?
So now with the announcement of budget and stimulus details, we know for certain who will foot the bill for universal healthcare. It turns out to be a very simple formula; half of the cost will come from a wealth transfer from the rich to the poor via income tax increases; the other half will be a squeeze on the healthcare system via a reduction in payments for medical services.
Fox News expands on this plan today saying "The $634 billion down payment on expanding health care coverage would come in part from a $318 billion increase over 10 years in taxes on the wealthy, defined as couples making more than $250,000 per year and individuals making more than $200,000. The tax increase would occur by reducing the benefit the wealthy get on tax deductions.
The other half of the down payment on Obama's drive toward universal health care -- $318 billion -- would come from curtailing payments to hospitals and insurance companies under Medicare and drug payments under Medicaid."
Gee, that wasn't so hard after all! (big grin)
Almost unnoticed (except at politico.com) is the fact that nowhere in the Obama plan is a provision to provide everyone with health insurance, just government paid health care. This announcement should terrify doctors and hospital administrators, but is welcome relief for commercial insurance companies.Tags : health insurance, universal healthcare