Dallas, TX, July 25, 2009 --(PR.com
)-- With the Democrat’s Health Care Reform bill passing 13 to 10 in the Committee on Health, Education, Labor and Pensions (HELP), the next step is the Finance Committee. The committee will determine where the $1.5 trillion in government funding will come from.
Thus far, the bill lists $544 billion coming from a new income tax on individuals who make more than $280,000 a year and households that report above $350,000 in earnings annually. In addition to income taxes, around $500 million in cuts to the Medicare and Medicaid systems and $200 billion in penalties collected from uninsured individuals and employers who choose not to obtain health insurance.
“One person could theoretically lose their job if employers would rather pay a penalty than provide health insurance for all employees,” Texas Association of Health Underwriters (TAHU) president Rusty Rice said, “It would be like choosing the lesser of two evils. Either pay for everyone’s health insurance and eliminate one staff member or take the penalty and eliminate one employee.”
The health care reform bill requires employers with more than $250,000 in annual payroll to provide insurance to all employees or pay a penalty of 8 percent of their annual payroll. Employers who have an annual payroll of $250,000 would pay a fine of $20,000 to the federal government, or about one entry-level employee’s salary.
“I believe Americans should be able to choose which health insurance plan they would like and whether or not to have a plan at all,” Rice said. “Obtaining funds from penalizing uninsured Americans and employers almost defeats the purpose of offering a government health care plan.”
If passed, the bill would allocate around $1.5 trillion in funds to the American health care system over the next ten years.
About the Texas Association of Health Underwriters
A state chapter of the National Association of Health Underwriters, TAHU is a professional organization of agents and insurance company representatives aiming “…to inform and protect the consumer by enhancing the professional growth of its members.” Since its founding in 1930, there are now over 200 state and local chapters of the NAHU servicing the insurance needs of millions of Americans. More information can be accessed at www.TAHU.org.
Media Contact: Laura Day
Eisen Marketing Group