Posts Tagged ‘IRS’

GOP Vows to Repeal the Affordable Care Act

Monday, November 8th, 2010

Newly empowered GOP sets its sights on rolling back healthcare reformNow that the GOP has retaken control of the House of Representatives, one of their overarching goals – according to Speaker-of-the-House-to-be John Boehner (R-OH) – is to repeal the landmark Affordable Care and Patient Protection Act that would provide healthcare coverage for millions of Americans who now have no insurance.

In Boehner’s own words, “The American people are concerned about the government takeover of healthcare,” he said.  “I think it is important for us to lay the groundwork before we begin to repeal this monstrosity and replace it with common-sense reforms that will bring down the cost of healthcare insurance in America.”  “Republicans will roll back whatever they can on healthcare,” noted Douglas Holtz-Eakin, a former Congressional Budget Office director.

Yet, there’s no hard evidence that the Republicans want to replace the current law with their own version of healthcare reform.  The GOP vision would give states the power to fund programs that extend coverage to some uninsured Americans.  People would also be allowed to carry insurance policies across state lines.  Mandates and government-run insurance pool would be non-existent.  Additionally, Republican legislation would cap court malpractice awards and help people direct more pretax money into healthcare savings accounts.  The Republican plan is anticipated to cut deficits by $68 billion over a decade.  On the downside, it would cover only about three million of the uninsured, leaving 52 million Americans with no healthcare coverage, according to Douglas Elmendorf, who is currently the Congressional Budget Office director.

There’s a significant roadblock in the way of the Republicans’ healthcare plan:  the presidential veto, which can be overturned only by a 2/3 vote in both houses of Congress.  “It would be a symbolic vote – a vote of intention rather than reality,” said Joseph Antos of the conservative think tank American Enterprise Institute.

Complicating the situation is the fact that some aspects of healthcare reform already in effect are quite popular, such as the provisions forcing insurers to cover children with pre-existing conditions and allowing parents to keep kids up to age 26 on their policies.

States Suing to Overturn Healthcare Reform Are Collecting Subsidies for Their Retirees

Monday, September 20th, 2010

States playing it both ways - trying to overturn healthcare reform while collecting subsidies.  Seven states that have filed lawsuits to overturn the healthcare reform law are nonetheless collecting subsidies authorized by the Patient Protection and Affordable Care Act to cover their retired government employees. The list of seven states – Arizona, Idaho, Indiana, Louisiana, Michigan, Nebraska and Nevada – are trying to have the reform law overturned as an unconstitutional power grab by the Obama administration.  So far, 16 states have been approved to receive the subsidies.

The seven are among 20 states that have challenged the law’s requirement that Americans buy health insurance or face IRS fines.  According to these states, it is unconstitutional to require that Americans be forced to purchase insurance.  The Obama administration’s response is that the mandate falls within the broad powers Congress has to regulate interstate commerce.  Nearly 2,000 employers – primarily private businesses — have been approved to receive extra help to provide coverage to early retirees.  In addition to the states, companies seeking subsidies include 50 percent of Fortune 500 companies, local governments, educational institutions, unions and non-profit organizations.

“In these tough economic times, it is difficult for employers to keep up with skyrocketing healthcare costs for employees and retirees,” according to Kathleen Sebelius, Department of Health and Human Services secretary.  The subsidies “will make it a little easier for employers to provide high-quality health benefits to their retirees.”  The retiree assistance is a temporary program that will phase out when the healthcare law takes full effect in 2014.  At that point, competitive insurance markets will be in place and eligible Americans can apply for government tax credits to help pay their premiums.”

Republican Senators Trying to Derail One Provision of Healthcare Reform

Wednesday, August 11th, 2010

Senate Republicans want to fast-track an amendment that repeals a portion of the new healthcare reform law. Whether or not they will be able to accomplish this is another question.Republicans make first attempt at scuttling healthcare reform legislation.

Senator Mike Johanns (R-NE) has proposed legislation to rescind a provision in the new law that requires businesses to report purchases of $600 or more to the Internal Revenue Service (IRS).  Business lobbyists such as the U.S. Chamber of Commerce and the National Federation of Independent Business (NFIB) both support the legislation.  Republicans want to attach the repeal provision to a broader bill intended to help small businesses.  According to the Chamber and the NFIB, the provision places a burdensome obligation on the nation’s 40 million small businesses.  Under this provision of the healthcare reform bill, businesses are required to file an IRS 1099 form for non-credit card purchases totaling $600 or more.  Johanns says that rule is “overly burdensome.”

To make up for the $17 billion that the provision would raise, Johanns has proposed reducing the individual mandate threshold and defer $16 billion in funding for wellness programs.  Senator John Cornyn (R-TX) and other Republicans have introduced legislation that would kill the Independent Payment Advisory Board that the healthcare reform law created.  Democratic Senators who wrote the legislation counter that the board is needed to reduce consistently increasing healthcare costs.