Health Care Reform – Summary of Legal Challenges
Health Care Reform – Summary of Legal Challenges
1. The act’s duties and requirements are not enumerated powers of the federal government under Article 1, Section 8, and therefore beyond the scope of the federal government.
2. In the act, the executive branch of government is granted powers not authorized under the Constitution.
3. Nearly all Americans are required, under the act, to purchase health insurance from private companies that in turn will be regulated by the federal government; a violation of the Commerce Clause with no precedence.
4. Punitive action against citizens for failure to comply violates the 5th Amendment, taking rights without “due process.”
5. The act violates Article 1, Section 9 of the Constitution, which limits the types of taxes that Congress can levy.
6. The act violates states’ rights, the 10th Amendment, in regulating the health care industry, including health insurance, and placing all regulations under the federal government.
These are just a few of the problems with the new health.insurance reform. America will get a good feel for the status of its justice system, by closely watching these health care reform cases progress through final resolution in the Supreme Court.
Lawsuits Challenge Health Care Reform Mandate
Lawsuits Challenge Health Care Reform Mandate
The requirement isn't scheduled to take effect until 2014, but on Friday, seven states (Alaska, Arizona, Georgia, Indiana, Mississippi, Nevada and North Dakota) officially joined 13 others in a lawsuit filed in U.S. District Court in Florida. Together, the 20 states are challenging the constitutionality of the individual mandate requiring everyone to purchase private health insurance. The states are arguing the federal government does not have the authority to force people to buy a product – in this case, health insurance. One of the nation's largest small business groups, the National Federation of Independent Business (NFIB), has also joined the lawsuit.
Since the enactment of health care reform, numerous states have filed similar legal actions, but according to the New York Times, the Florida lawsuit "could carry the most weight, and may be on the fastest track in the most advantageous venue."
Meantime, Missouri is the first state to call for a public vote on the health insurance mandate. The state's House of Representatives last week approved a ballot measure that says individuals and businesses cannot be compelled to have health insurance. The vote is scheduled for Aug. 3, during the state's primary election.
Health Care Reform Is Here
Health Care Reform Is Here
Health care reform became law on March 23. There are many questions that have yet to be answered, and IQHSA.com has been hard at work to determine how health care reform will affect you and your business.
Health Care Reform – Democrats Admit Premiums to Rise
Health Care Reform – Democrats Admit Premiums to Rise
Wednesday, April 21, 2010
Today, the New York Times reports Democrats are scrambling to prevent the predicted health insurance premium increases that are coming for millions of families as a result of their big government health care Insurance Reform overhaul. Just one month after becoming law, Democrats, “fearing that health insurance premiums may shoot up in the next few years,” are attempting to “fix” the new law that they promised would make health care more affordable. Unfortunately, when it comes to fixing health care, Democrats invariably rely on giving the government more authority and control.
Americans and Congressional Republicans have repeatedly cited the rising cost of health insurance as their number one concern related to health care, but after spending one trillion dollars, cutting Medicare by one-half trillion dollars and increasing taxes by over one-half trillion dollars, the Democrats’ health care reform overhaul law fails to make health insurance coverage more affordable. The Congressional Budget Office (CBO) has repeatedly warned that the Democrats’ plan would increase health insurance premiums, something the Democrats now realize, as reported by the New York Times. Conversely, CBO predicted the Republican Alternative would actually lower health insurance premiums without increasing the deficit, cutting Medicare, or raising taxes.
Impact on Individual Health Insurance Market Premiums in 2016
Under Various Democrat Proposals According to CBO
|
Proposal |
Change in Health Insurance Premiums Compared to Current Law Projections |
|
Senate Democrats’ Bill (H.R. 3590)* |
$2,100 increase |
|
House Democrats’ Bill (H.R. 3962)** |
$1,900 increase |
|
House Republican Bill (H.R. 4038)*** |
$1,050 decrease |
President Obama asserted that under the Democrats’ scheme, “you’re going to be able to get lower costs.” The President and Congressional Democrats also promised under the new law seniors’ Medicare would be unharmed, middle class taxes would not go up and the law would not increase the deficit. In the rush to score a political win, what else weren’t the Democrats being forthcoming about regarding health care reform?
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AT&T Will Record A $1 Billion Expense Related To Health Care Law
The AT&T write-down is the largest reported so far. Caterpillar this week recorded a $100 million charge in the first quarter and Deere & Co. said it will report a one-time $150 million expense.
Among its many changes, the new health-care law eliminated a tax deduction that companies used to cut the cost of drug-benefit programs for retired workers. President Obama signed the massive health-care overhaul into law earlier this week in a big victory for ruling Democrats.
The health reform bill eliminated a subsidy for companies that operated as a double deduction. Companies such as John Deere and Caterpillar will face new costs up to $150 million, Ellen Schultz reports.
Yet companies that still offer retiree drug benefits, mostly older industrial concerns or those with unionized employees, say the end of the deduction could force them to alter their benefit plans. In other words, they might curtail or even cancel them.
“As a result of this legislation, including the additional tax burden, AT&T will be evaluating prospective changes to the active and retiree health care benefits offered by the company,” AT&T said in a filing with the government on Friday.
An AT&T spokesman declined to comment further on the filing.
Earlier this week, Verizon Communications sent a letter to employees suggesting that changes to their health-care plans could be afoot. AT&T and Verizon are the two largest phone companies in the U.S. and include a substantial number of unionized workers.
Several million retirees are estimated to receive drug benefits from a few thousand companies. If those retirees were shifted to the federal Medicare program, the government would to pick up the expense. Whether savings from elimination of the subsidy would offset those higher Medicare costs is unclear.
Under the old law, companies received a federal subsidy worth up $1,330 per retiree if they provided former workers with drug-care benefits. At the same time, however, companies could deduct the value of the subsidy from their taxable income.
White House spokesman Robert Gibbs on Thursday said the government merely eliminated a tax loophole that effectively allowed a company to benefit twice from one law.
The AT&T announcement is sure to cause a ripple in Washington. Republicans have already assailed the administration for what they say are excessive costs saddled on business by the health-care law. The issue is sure to be part of their campaign against Democrats in the fall elections.
Democrats say the health-care law will become more popular over time and they point out that it also includes substantial new subsidies for business.
“There’s $10 billion in health-care reform for support for businesses with early retirees,” Gibbs said.
Jeffry Bartash is a reporter for MarketWatch in Washington.
The people we work with are saving an average of $2,208/year on their health insurance premiums without sacrificing benefits. You owe it to yourself to find out how a HSA can benefit you. Contact us today at 602-510-7507 or info@iqhsa.com. To receive quotes for individual/family health insurance in Arizona click here.
IQ Financial Group, llc. is a licensed insurance agency in the state of Arizona. We offer a complete selection of health insurance, term life insurance, disability insurance, long term care insurance and supplement plans to individuals, families, self-employed and small businesses throughout Arizona. We offer the best in Arizona Health Insurance.
© IQ Financial Group, llc.
Business Owner on Health Care: “I’m Confused”
CNBC Correspondent
Madelyn Alfano is no dummy. This native of Hoboken has spent the last 25 years building up a successful chain of restaurants in Los Angeles called Maria’s Italian Kitchen. She’s President of the LA chapter of the California Restaurant Association.
But ask her what she’s supposed to do next to expand healthcare coverage from 50 fulltime employees to all 400 of her workers, and she draws a blank. “I just read a 30-page summary of what the healthcare bill is supposed to do and mean,” she says. “And I read it again. I read it two times, I was so confused.” She knows that within four years she will need to provide coverage, but she has a lot of questions. For example, if she has a part-time waiter who works a second job at another restaurant, “Who pays for that?” She’s also concerned that she’ll be paying workers comp, sick days, general liability, AND healthcare. “Something’s gotta give.”
The situation has her pausing expansion plans.
Alfano is just one of many business owners now trying to figure out what’s next. Here’s more of what she had to say.
The new healthcare law also mandates that any restaurant chain with at least 20 outlets must supply calorie information to customers. Alfano says that’s already the law in California, and the restaurant association supports this. But she’s worried she might get sued. Here she explains why:
Finally, the restaurant industry has been one of the hardest hit businesses in this recession. Madelyn Alfano explains how she managed to turn a profit and not lay off a single employee.
The people we work with are saving an average of $2,208/year on their health insurance premiums without sacrificing benefits. You owe it to yourself to find out how a HSA can benefit you. Contact us today at 602-510-7507 or info@iqhsa.com. To receive quotes for individual/family health insurance in Arizona click here.
IQ Financial Group, llc. is a licensed insurance agency in the state of Arizona. We offer a complete selection of health insurance, term life insurance, disability insurance, long term care insurance and supplement plans to individuals, families, self-employed and small businesses throughout Arizona. We offer the best in Arizona Health Insurance.
© IQ Financial Group, llc.
The President Signed Health Care Legislation Today
The President signed the Health Care Legislation into law today. Here is a summary of the changes the initial version of the law will enact:
- Mandate everyone must get insurance
- Result in about 30 million additional people becoming insured
- Subsidize coverage for people who can’t afford insurance; increase the number of people eligible
for Medicaid - Raise money to pay for these things through new fees, taxes and cuts to Medicare Advantage
- Change the payment formula for Medicare Advantage
- Make many changes in the way insurance companies operate, from saying they have to sell insurance to everyone, regardless of pre-existing conditions and health status, to selling insurance to individuals and small businesses through an exchange
The reconciliation bill, if it passes the Senate, would adjust many of those provisions and dates of enactment, although the broad strokes of the bill would remain the same.
The people we work with are saving an average of $2,208/year on their health insurance premiums without sacrificing benefits. You owe it to yourself to find out how a HSA can benefit you. Contact us today at 602-510-7507 or info@iqhsa.com. To receive quotes for individual/family health insurance in Arizona click here.
IQ Financial Group, llc. is a licensed insurance agency in the state of Arizona. We offer a complete selection of health insurance, term life insurance, disability insurance, long term care insurance and supplement plans to individuals, families, self-employed and small businesses throughout Arizona. We offer the best in Arizona Health Insurance.
© IQ Financial Group, llc.
Side By Side Comparison Of Current Health Care Proposals
Passing comprehensive health care reform has been a priority of the President and Congress. The U.S. House of Representatives passed the Affordable Health Care for America Act on November 7, 2009 and the U.S. Senate passed the Patient Protection and Affordable Care Act on December 24, 2009. On March 18, 2010, Congressional leaders introduced the Health Care and Education Reconciliation Act of 2010, which modifies certain provisions in the Senate bill. The following summaries of these three bills focus on provisions to expand health care coverage, control health care costs, and improve the health care delivery system.
[Note: The reconciliation bill makes changes to the Patient Protection and Affordable Care Act passed by the Senate. The summary below includes the Senate bill language and incorporates changes to particular provisions made by the new legislation. The changes are identified by italicized text. If a provision was not addressed by the reconciliation bill, the Senate bill language has remained unchanged.] CLICK HERE to view side by side comparison.
The people we work with are saving an average of $2,208/year on their health insurance premiums without sacrificing benefits. You owe it to yourself to find out how a HSA can benefit you. Contact us today at 602-510-7507 or info@iqhsa.com. To receive quotes for individual/family health insurance in Arizona click here.
IQ Financial Group, llc. is a licensed insurance agency in the state of Arizona. We offer a complete selection of health insurance, term life insurance, disability insurance, long term care insurance and supplement plans to individuals, families, self-employed and small businesses throughout Arizona. We offer the best in Arizona Health Insurance.
The Rate Of Health Care Spending
Last week, the Centers for Medicare and Medicaid Services (CMS) released its annual health care spending projections. The CMS actuaries and economists project:
- Between 2009 and 2019, national health costs will grow at an average annual rate of 6.1 percent. This rate is about 2 percentage points faster than the projected growth of the gross domestic product, which is expected to average 4.4 percent. As a result, national health expenditures will grow from an estimated 17.3 percent of GDP in 2009 to 19.3 percent by 2019
- Private health insurers’ administrative costs will continue to fall, from 11.7 percent of premiums in 2008 to 11.2 percent in 2009. (In comparison, administrative costs were 13.7 percent of premiums in 2003.) Projections for administrative costs in 2009 are $4.3 billion lower than in 2007
- Private health insurance premiums will grow at a rate of 3.3 percent in 2009, up from 3.1 percent in 2008 and down from 4.4 percent in 2007. The rate of growth will decline to 2.5 percent in 2010
- Public health funds will account for 50.4 percent of all health care spending by 2011 – the first year government programs will account for more than half.
The report, published last week in Health Affairs, notes that the “two primary drivers of growth are medical prices and utilization.” It includes these proof points:
- Hospital spending growth is projected to have accelerated from 4.5 percent in 2008 to 5.9 percent in 2009
- Spending growth for physician and clinical services is expected to have accelerated to 6.3 percent in 2009, up from 5 percent in 2008
- Prescription drug spending is expected to have grown 5.2 percent in 2009, an acceleration of 2 percentage points from 2008.
The people we work with are saving an average of $2,208/year on their health insurance premiums without sacrificing benefits. You owe it to yourself to find out how an HSA can benefit you. Contact us today at 602-510-7507 or info@iqhsa.com.
IQ Financial Group, llc. is a licensed insurance agency in the state of Arizona. We offer a complete selection of health insurance, term life insurance, disability insurance, long term care insurance and supplement plans to individuals, families, self-employed and small businesses throughout Arizona. We offer the best in Arizona Health Insurance.
© IQ Financial Group, llc.
When Will Obama’s Health Care Policies Become Reality?
When will Obama’s health care policies become reality?
Ah Never! Obama’s approach is to radical and would be completely ineffective at solving the real problems.Why are the costs of food, transportation, and even auto insurance not rising at the same pace as health insurance/ healthcare costs? The answer is that these other major segments of our economy function in a true marketplace where the consumer interacts directly with the provider of services.
Still don’t get it? How many of you know what the “true” cost of an average doctors visit or CAT Scan is? Answer, you really don’t. You may have said I pay a $25 copay when I go to the doctor, but that is not the true cost to someone walking in off the street without insurance.Now ask yourself what a gallon of milk costs? I’d be willing to bet 90% of you can come within $0.50 of knowing the answer.
It’s real simple, you don’t have the Grocery Company and your employer making decisions as to where you shop and what gallon of milk you buy thus driving up the costs. Obamacare is not a solution. If implemented costs would continue to rise, care would decrease, national debt would rise and we would have another wonderful beauracracy. Sounds like Utopia to me.
The people we work with are saving an average of $2,208/year on their health insurance premiums without sacrificing benefits. You owe it to yourself to find out how a HSA can benefit you. Contact us today at 602-510-7507 or info@iqhsa.com.
IQ Financial Group, llc. is a licensed insurance agency in the state of Arizona. We offer a complete selection of health insurance, term life insurance, disability insurance, long term care insurance and supplement plans to individuals, families, self-employed and small businesses throughout Arizona. We offer the best in Arizona Health Insurance.
© IQ Financial Group, llc.