According to the newest Wall Street Journal copy issued on October 30, 2009, the health bill, “milestone” in the US legislation has already been approved. However, the decision has not yet put an end to arguments taken for months; instead concerns about the new program’s effectiveness remains between people familiar with the topic. Wall Street Journal has covered various opinions by professionals about how the new program would affect private insurers, doctors, hospitals, drug companies, and medical suppliers on copies issued from Oct 27 – 29, 2009 when revealing not much about consumers’ views on the topic and whether consumers are happy with the public plan.
The new bill clearly declares that “Employers must provide health-insurance coverage or pay fine of 8% of payroll (for those with payroll greater than $750,000)” which predicts a big drop in profit for businesses as they have to pay more to cover health care for their employees. In order to enforce this new bill, the government plans to set aside $894 billion over a decade resulting in higher taxes to firms and significant spending cuts to Medicare. Business Round Table, currently representing 10 million employees and providing health care to more than 35 million Americans, emphasizes higher taxes discourage businesses and job creation which simultaneously put firms at disadvantageous position when competing at the international market. This discouragement in domestic market may drive firms to outsource and seek for opportunities oversea. According to the article “Political Uncertainty puts freeze on small businesses” on Oct 27, the fact that firm lay off more employees due to its anticipation of potential higher taxes from healthcare overhaul would impede economy recovery post- recession.
So far, the new public plan embraces no support but from the government and consumers. Big Business Groups are against it because of higher taxes and increase in national debts. Small business groups believe that the public option is unnecessary to spur competition. Insurance companies complain the new bill is going to drive them out of business as the government is such a “big rival”. Doctors and hospitals have to undergo a negotiation about payment rates which are lower than private insurers pay them and suffer 21% cut to Medicare payments. However, the motives of the new plan is encouraging as it is expected to lower costs of medical service and” It would leave 96% of legal U.S. residents with health insurance by 2019, up from 83% today”. Moreover, the public plan is necessary to prevent escalating health care cost as Business Round Table estimates in the next decade, the employer have to pay nearly $29,000 for each employee’s coverage compared to $11,000 today if there is no health care overhaul by the government. All in all, the public plan is necessary but it may carry finance risks and hurt the economy if not handled carefully.
Reference:
1. Ademy, Janet. “House Leaders Unveil health bill”, Oct 30, 2009. Wall Street Journal.
2. Ademy, Janet. “Business Groups push hard against the Senate bill.” Oct 29, 2009. Wall Street Journal.
The new bill clearly declares that “Employers must provide health-insurance coverage or pay fine of 8% of payroll (for those with payroll greater than $750,000)” which predicts a big drop in profit for businesses as they have to pay more to cover health care for their employees. In order to enforce this new bill, the government plans to set aside $894 billion over a decade resulting in higher taxes to firms and significant spending cuts to Medicare. Business Round Table, currently representing 10 million employees and providing health care to more than 35 million Americans, emphasizes higher taxes discourage businesses and job creation which simultaneously put firms at disadvantageous position when competing at the international market. This discouragement in domestic market may drive firms to outsource and seek for opportunities oversea. According to the article “Political Uncertainty puts freeze on small businesses” on Oct 27, the fact that firm lay off more employees due to its anticipation of potential higher taxes from healthcare overhaul would impede economy recovery post- recession.
So far, the new public plan embraces no support but from the government and consumers. Big Business Groups are against it because of higher taxes and increase in national debts. Small business groups believe that the public option is unnecessary to spur competition. Insurance companies complain the new bill is going to drive them out of business as the government is such a “big rival”. Doctors and hospitals have to undergo a negotiation about payment rates which are lower than private insurers pay them and suffer 21% cut to Medicare payments. However, the motives of the new plan is encouraging as it is expected to lower costs of medical service and” It would leave 96% of legal U.S. residents with health insurance by 2019, up from 83% today”. Moreover, the public plan is necessary to prevent escalating health care cost as Business Round Table estimates in the next decade, the employer have to pay nearly $29,000 for each employee’s coverage compared to $11,000 today if there is no health care overhaul by the government. All in all, the public plan is necessary but it may carry finance risks and hurt the economy if not handled carefully.
Reference:
1. Ademy, Janet. “House Leaders Unveil health bill”, Oct 30, 2009. Wall Street Journal.
2. Ademy, Janet. “Business Groups push hard against the Senate bill.” Oct 29, 2009. Wall Street Journal.
No comments:
Post a Comment