There has been a lot of emotional debate regarding the condition of Health Care in the United States and Congress’ attempt at reform via the Patient Protection and Affordable Care Act (H.R.3590). A torrent of opinionated rhetoric has been espoused regarding the subject of Health Care, even to the point of an emotional clash of ideologies between those who support and those who oppose H.R.3590. From an out outside perspective though, it’s disturbing how little people actually know about what is in the H.R.3590.
I can’t claim to have read H.R.3590 in its entirety, but I have read a good portion of it and the following are two items which jumped out at me.
The first was a small section requiring each U.S. hospital to establish and make public a list of its standard charges for items and services. I think this is a great thing to do; it is a step towards empowering the consumer (the public) with the information to make an informed decision regarding the items and services for which they would like to choose to receive. This is a step in the direction of open market competition and I am very pleased to see it. I’ve always found it annoying to not have any idea how much things are going to cost when I visit a doctor. I would much prefer to know up front how much it’s going to cost, not find out when I get the bill after it’s all done.
The second thing that caught my eye was section 9002. I’ll let you read it.
SEC. 9002. INCLUSION OF COST OF EMPLOYER-SPONSORED HEALTH COVERAGE ON W-2.
(a) In General- Section 6051(a) of the Internal Revenue Code of 1986 (relating to receipts for employees) is amended by striking `and’ at the end of paragraph (12), by striking the period at the end of paragraph (13) and inserting `, and’, and by adding after paragraph (13) the following new paragraph:
`(14) the aggregate cost (determined under rules similar to the rules of section 4980B(f)(4)) of applicable employer-sponsored coverage (as defined in section 4980I(d)(1)), except that this paragraph shall not apply to–
`(A) coverage to which paragraphs (11) and (12) apply, or
`(B) the amount of any salary reduction contributions to a flexible spending arrangement (within the meaning of section 125).’.
(b) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2010.
What this means is that starting in 2011 (next year!) your W-2 tax form sent by your employer will be increased to show the value of whatever health insurance you are given by the company. In other words, we will now be required to pay taxes on a large sum of money that we have never seen!
To see the effect, take your taxes from last year and see what $10,000 or $20,000 additional gross does to your tax debt. That’s what you’ll pay next year. It has an even worse impact on those of who are put into a new higher tax bracket as a result of this addition.
This little section of the enormous litigation has a huge impact on us, but none of our elected representatives seem to want to talk about what the bill actually does!?! Or is it that they don’t know?.. It’s somewhat suspicious when the most prominent supporter and active proponent of H.R.3590 states:
“But we have to pass the bill so that you can find out what is in it.” – Nancy Pelosi
Scary huh?
