Wonder what you would find if you frisked President Obama’s socialized health-care reform bill… for the millionth time?
Answer: Under Obama-Care, we’re likely to see retirees’ prescription drug coverage dropped.
Dang! The Democrats are on a roll with their new health-care bill! All of the hidden positives are flying out of its 2,000+ pages, aren’t they? Wait a minute… No they’re not.
The Associated Press (of all media outlets) reports:
The health care overhaul will cost U.S. companies billions and make them more likely to drop prescription drug coverage for retirees because of a change in how the government subsidizes those benefits.
In the first two days after the law was signed, three major companies — Deere & Co., Caterpillar Inc. and Valero Energy — said they expect to take a total hit of $265 million to account for smaller tax deductions in the future.
With more than 3,500 companies now getting the tax break as an incentive to keep providing coverage, others are almost certain to announce similar cost increases in the weeks ahead as they sort out the impact of the change.
Figuring out what it will mean for retirees will take longer, but analysts said as many as 2 million could lose the prescription drug coverage provided by their former employers, leaving them to enroll in Medicare’s program.
Politicians… They never seem to understand that unintended consequences will definitely occur when you overhaul 1/6th of the U.S. economy with a health-care bill the size of Mt. Everest! At least private companies warned the Democrats about the possibilities of this dilemma:
Industry groups say they lobbied hard against the change in the tax rules before it was added to the health care law over the winter.
“It was in all of our letters and communications that went up to the Hill, and the companies were heavily involved in that,” said Dena Battle, a tax specialist with the National Association of Manufacturers.
The companies that signed the December letter warned that changing the way retiree drug benefits are subsidized would have a broad impact on the economy, and there are already indications that the effects will trickle down to individuals.
Bravo! Good job Democrats! 🙄 Yeah… That whole “collecting $5.4 billion in revenue by eliminating the tax break enacted in the 2003 Medicare Part D program as an incentive for businesses to keep their retirees out of the Medicare system” thing… Unfortunately, I don’t think it is going to workout the way you hoped. Great, more burden on the taxpayer!
Hope-and-change right? Pff…