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Thursday, March 18, 2010

Reconciliation Changes to Senate Bill that will Add to $940 Billion CBO Estimate

Politico is laying out a few changes that reconciliation brings to the Senate Bill, things that I believe will add to the $940 billion CBO estimate. I hear a lot of ka-ching, ka-ching - meaning income expected from the implementation of health care has been removed, and may or may not kick-in some time later.

Keep in mind that I only know about buying my own insurance. I'm not certain that I have represented the following correctly. I have chosen only a few items on Politico's list. Please point out anything you see that I have misinterpreted. Read it all at Politico.

Things that appear to raise the cost of the reconciliation package (monies the government would have received to pay for the cost of health care, that has now gone away, but probably only for a matter of 1 to 4 years.

ka-ching: Increased tax credits for middle-income buying insurance

ka-ching: reduces penalties for not buying insurance

ka-ching: Covers 100% of increased Medicaid costs of all states until 2016 - then decreases begin.

ka-ching: Requires doctors caring for Medicaid patients be reimbursed at the full rate

KA-CHING: Adds $250 million to fight waste, fraud and abuse

ka-ching: delays some taxes (reducing revenue collected) on high-end insurance plans, mirroring the deal Dems worked with labor unions.

ka-ching: Gives Seniors falling into the doughhole hole, $250 annually.

KA-CHING: closes the doughnut hole by 2011.  Someone has to pay it, that's why Republicans instituted the gap. Someone has to pay it.

KA-CHING: adds $1 billion for administrative costs

ka-ching: Adds 2 billion in increases federal funding to the Senate bill for Puerto Rico, Virgin Islands, Guam, American Samoa, and the Northern Marianas Islands and raises the caps on Medicaid for these territories.

ka-ching: Delays  an "industry fee" on sales of brand name pharmaceuticals for one year.

ka-ching: Delays the excise tax on medical device manufacturers by two years.

ka-ching: Delays an industry fee on health insurance providers for 3 years.



Things that add more to the government heist of your wallet, but may decrease the cost of the reconciliation package: 

Imposes a Medicare tax on unearned income for families making more than $250,000. This includes interest, dividends, royalties, rents, gross income from a trade or business involving passive activities, and net gain from disposition of property.

Freezes Medicare Advantage payments. You pay more.

Lowers  the reduction of federal Medicaid DSH payments, $4 billion back into the system










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