Fix Health Care Policy

While the Supreme Court deliberates whether the Affordable Care Act should stand, the Obama Administration is busy at work ensuring that the President’s health care law is implemented. The Hill reports that the White House has allocated half a billion dollars to the IRS to put Obamacare in place:

The Obama administration is quietly diverting roughly $500 million to the IRS to help implement the president’s healthcare law.

The money is only part of the IRS’s total implementation spending, and it is being provided outside the normal appropriations process. The tax agency is responsible for several key provisions of the new law, including the unpopular individual mandate.

The Hill also reports that the White House is also spending other funding allocated under Obamacare:

The law contains dozens of targeted appropriations to implement specific provisions. It also gave the Department of Health and Human Services (HHS) a $1 billion implementation fund, to use as it sees fit. Republicans have called it a “slush fund.”

(Read the rest on The Foundry…)

Tags: ACA, implementation, IRS, Supreme Court, unpopular law

Last week, the IRS released its proposed plan to implement the 2.3 percent excise tax on medical devices designed to help foot the bill for Obamacare.

Harmful effects of the health law’s new taxes and requirements on business continue to emerge as its implementation continues. As Heritage’s Curtis Dubay explains, “All tax increases have negative economic effects because higher taxes take resources from the productive hands of the private sector and transfer them to the wasteful hands of politicians.”

As the National Center for Policy Analysis shows, the medical device manufacturer tax is already hurting Americans by reducing employment:

In November 2011, device maker Stryker Corporation announced its intention to layoff 1,000 workers in order to cut costs in advance of the tax.  (Read the rest on The Foundry…)

Tags: IRS, negative economic effects, ObamaCare, tax increases

Tucked away in the legislation that made Obamacare into law is a tax provision that will be a compliance nightmare for small businesses if it ever goes into effect. The provision calls for all businesses to file 1099 forms with the IRS for all transactions with other businesses over $600.

Businesses are not like individuals. They purchase lots of items in large quantities. As a result, if the Obamacare reporting requirement goes into effect as scheduled in 2012, it would create an enormous compliance burden on businesses. Businesses would have to file millions of new forms with the IRS. Small businesses would be especially hard hit, because they do not have large accounting departments that can absorb more bureaucracy like larger businesses. (more…)

Tags: 1099 forms, IRS, ObamaCare, repeal, small businesses

Obamacare requires all individuals to carry health insurance for themselves and their families. Those who don’t will have to pay a penalty. And the Internal Revenue Service is the agency charged with making sure the uninsured pony up.

Just how will the IRS do that? It’s not something lawmakers got around to actually, you know, writing down in any detail in that big bill. That’s even harder to do than reading that monster. But now that they’ve made Obamacare the law of the land, they’re starting to take an interest in the question. No doubt some are blaming the daily eruptions on congressional staff.

The Senate Finance Committee recently held a hearing to explore what the IRS might do to enforce the congressional mandate to buy health insurance. One answer headlined the Wall Street Journal’s report on the hearing: IRS May Withhold Tax Refunds to Enforce Health Care Law:

Steven T. Miller, IRS Deputy Commissioner for Services and Enforcement, explained that, though the IRS “won’t audit you to make sure you have purchased health insurance under provisions of the new health-care law…it may withhold your tax refund if you can’t demonstrate that you are insured.”

According to the Journal, if the IRS does not receive notification that a taxpayer has insurance, the agency will notify the taxpayer that he or she must pay a tax penalty. Then, if the penalty payment does not arrive, the IRS may withhold tax refunds due to the filer. But,then, what happens if the taxpayer doesn’t have a refund coming?

Of course, as Obamacare increases the tax agency’s power, it will also increase its payroll. Heritage Tax Policy Analyst Curtis Dubay noted on FOX Business Network:

“[The IRS will]… be in charge of enforcing the individual mandate that we all have health insurance. They’re also going to be in charge of making sure businesses provide health insurance for employees. So they’re going to have to add lots more workers.”

In Washington, it seems, you can’t spell health insurance without I-R-S. That’s a shame, because Congress could have dramatically expanded private health insurance without resorting to an unconstitutional mandate. To learn about far better alternatives (hint: auto enrollment in employer-based insurance and a universal tax credit system, for starters), go here.

Vivek Rajasekhar currently is a member of the Young Leaders Program at the Heritage Foundation. For more information on interning at Heritage, please visit: http://www.heritage.org/About/Internships-Young-Leaders/The-Heritage-Foundation-Internship-Program

Tags: employer-based insurance, Individual Mandate, IRS, Side Effects, tax penalty

There’s only one way to pull the economy out of the doldrums. We need more jobs. Now.

As Obamacare inched its way toward passage, boosters of the radical legislation began making bold new claims about its virtues. The bill, they said, would do far more than simply fix the health care system; it would create jobs and boost the economy, too.

[Oddly, they stopped short of claiming it would also help melt away the pounds as you sleep.]

Not surprisingly, the early evidence is quickly proving their claims to be false. (more…)

Tags: IRS, job killer, job loss, Medical device tax, ObamaCare, Side Effects

As the health care reform debate began over a year ago, the American Medical Association, the top doctors group in the country, released a list of its top priorities for health reform. The AMA is a powerful association, and many have credited it with helping to kill HillaryCare, so the organization, of which I am a member, was in a good position to impact President Obama’s health care reform plan and accomplish some of doctors’ long-awaited goals. Remember, without doctors, there is no health care, so it is important that health reform address the issues that are important to doctors and will help them keep their doors open and better serve America’s patients.

Two of the AMA’s top priorities are also two of the main reasons I decided to run for Congress almost 10 years ago – repealing the flawed Medicare physician payment formula, and nationwide medical liability reform. Unfortunately for doctors, Democrats in Washington, who have had control of Congress for over 3 years, have shown absolutely no signs of seriously addressing either of these issues. But with the AMA’s clout, I was hopeful that this time, with comprehensive health care reform a major goal for President Obama, these two big issues would finally be addressed.

(more…)

Tags: American Medical Association, doc fix, HillaryCare, IRS, medical liability reform, Medicare physician payment formula, ObamaCare, Rep. Michael Burgess

President Obama this morning cited The Heritage Foundation’s research in an attempt to sell his health care package as a “middle of the road, centrist approach.” We take great exception to this misuse of our work and abuse of our name. This is but the latest act in a campaign to sell this big-government program as a moderate law that incorporates conservative ideas. Americans should not be fooled.

Let’s be very clear: We oppose this new law because it is a radical new intrusion into the daily lives of all Americans and a massive takeover of one-sixth of the U.S. economy. We view the President’s health care law as inimical to our national interests and offensive to the historic American dedication to the principle of self-government.

Our research has shown that President Obama’s health approach is financially unsustainable and will ultimately lead to health care rationing, a lower quality of care and a greater degree of dependence on government. We deplore those outcomes and are committed to making the intellectual case for this law’s repeal.
What part of that does President Obama not understand?

Specifically, President Obama told NBC’s Today Show host Matt Lauer that a centerpiece of his health care package, “in terms of the exchange, just being able to pool and improve the purchasing power of individuals in the insurance market—that originated from The Heritage Foundation.”

But the President knows full well—or he ought to learn before he speaks—that the exchanges we and most others support are very different from those in his package. True exchanges are simply a market mechanism to enable families to choose their health insurance. President Obama’s exchanges, by contrast, are a vehicle to introduce sweeping regulation and federal standardization on health insurance. (more…)

Tags: big-government program, health insurance exchanges, health insurance premiums, Heritage President Edwin Feulner, IRS, President Barack Obama

Some supporters of the health care “reform” bill being shoved through the Senate are dismissing concerns over the individual insurance mandate and the tax penalty imposed on those who don’t meet that requirement. They claim that because § 5000A of the bill waives criminal prosecution of taxpayers and says that no liens or levies can be filed on the taxpayer’s property, this is supposedly a “voluntary mandate” and the IRS can’t do anything against you if you refuse to pay the penalty.

That claim is wrong for a number of reasons. First of all, if you refuse to pay the penalty or you refuse to provide any information on your health care status on your tax return, you will face the prospect of being audited by the Internal Revenue Service, something that rightly scares all taxpayers, including those who are law abiding and have done everything they think they should to comply with the law. IRS tax audits are notoriously intrusive, intimidating, and expensive, and the IRS is known for its consistent inconsistency in applying its complex and Byzantine rules and regulations. (more…)

Tags: Individual Mandate, IRS, senate health care bill

The Senate health care bill includes a well-known “employer mandate” provision that would require employers to offer “qualified” health plan and pay 60% of the premium, or pay an annual tax penalty of $750 per full-time employee.

What is less well-known is that the provision would also tax companies even if they do offer insurance – but only if they hire people from low- and moderate-income families who qualify for, and elect to accept, premium subsidies. And the tax penalty for hiring those employees – arguably the people who need jobs the most – would be a whopping $3,000 per year.

Who would qualify for such a subsidy?
There are two criteria. First, family income – not how much this employee is paid by this company, but total family income – would have to below four times the federal poverty level (FPL). The FPL depends on family size; for 2009 four times the FPL would be $43,320 for a single adult with no children and $88,200 for a family of four (regardless of whether it’s a single parent with three children or two parents and two children). (more…)

Tags: discrimination, employer mandates, federal poverty level, income inequality, IRS, Obama Health Care Plan