Health in US

The cost for the American citizen’s health insurance will be done by several means predominantly being taxation. The major way in which the Senate plans to get the financing for the health insurance bill is through the taxing of Cadillac insurance plans.

There will be several different kinds of funding mechanisms in place. The Cadillac insurance plan is what only the cream of American society such as the billionaires, magnates, and CEOs can have.

This plan is defined as anyone who has a health insurance coverage that pays out a premium of $8,000 for an individual and $21,000 for a family coverage.

The government will subsidize and pay for coverage for those people who cannot afford health insurance and neither do they have any health insurance from their employers.

There will be a tax credit that small companies can avail of when they provide health coverage to their employees. Big companies if they don’t provide health coverage will be levied a penalty by the government.

The cost for the average middleclass American is going to be phenomena. Already some insurance companies envisage a huge enough increase in the health insurance premiums that people will end up paying.

These will be as much as 40% more of what they have already been paying. There will be an increase of more than a rent in your monthly budget going by the way the health insurance premiums are set to rise.

Also, when the employers discover how much more insurance is going to cost them this year onwards, they might want to go ahead and opt for a cheaper plan that does not have adequate coverage. Moreover, the more spending on insurance will overall affect the investment made in the economy, and this in turn will bring down the investments made in the business so less employment.

The health care reform seems to be lopsided in some ways as the haves will end up paying for the have not’s. The productive staff will be made to pay for the unproductive ones and that is what is building up the frustration and angst in people’s minds. The government is in a deficit and is spending more than it can afford. At last count, for every dollar earned by the government it ended up spending $1.64.this has led to a huge fiscal deficit in the budget that needs to be bridged.

The cost for the health insurance will be billed in the form of higher premiums that are bound to be charged by the insurance companies. For employed folks, their employers might pick up a part of the tab and leave the rest of them for them to pick up. On the other hand for the scores of uninsured people it will be the government who will pay for their insurance by collecting more tax from the common man. This is where the debate lies of whether it is right to do so.