1) OBAMA: "And by this August, nearly 13 million of you will receive a rebate from your insurance company because it spent too much on things like administrative costs and CEO bonuses and not enough on your health care."
"THE FACTS: Rebates are coming, but not nearly that many Americans are likely to get those checks and for many of those who do, the amount will be decidedly modest."
"The government acknowledges it does not know how many households will see rebates in August from a provision of the law that makes insurance companies give back excess money spent on overhead instead of health care delivery. Altogether, the rebates that go out will benefit nearly 13 million people. But most of the benefit will be indirect, going to employers because they cover most of the cost of insurance provided in the workplace."
"Employers can plow all the rebate money, including the workers' share, back into the company's health plan, or pass along part of it."
"The government says some 4 million people who are due rebates live in households that purchased coverage directly from an insurance company, not through an employer, and experts say those households are the most likely to get a rebate check directly."
"The government says the rebates have an average value of $151 per household. But employers, who typically pay 70 to 80 percent of premiums, are likely to get most of that."
2. ROMNEY: "Obamacare raises taxes on the American people by approximately $500 billion."
THE FACTS: The tax increases fall heavily on upper-income people, health insurance companies, drug makers and medical device manufacturers.
People who fail to obtain health insurance as required by the law will face a tax penalty, although that's expected to hit relatively few because the vast majority of Americans have insurance and many who don't will end up getting it. Also, a 10 percent tax has been imposed on tanning bed use as part of the health care law. There are no other across-the-board tax increases in the law, although some tax benefits such as flexible savings accounts are scaled back. Of course, higher taxes on businesses can be passed on to the consumer in the form of higher prices.
Individuals making over $200,000 and couples making over $250,000 will pay 0.9 percent more in Medicare payroll tax and a 3.8 percent tax on investments. As well, a tax starts in 2018 on high-value insurance plans.
Let's finish with a couple of Q&A's from the NY Times"
"Q. Will my insurance premium go up?
A. The Congressional Budget Office estimates that private health insurance premiums will increase by 5.7 percent each year, on average, from 2012 until 2022. But premiums would be getting more expensive with or without the Affordable Care Act. The budget office has estimated that, relative to what would happen in the absence of the law, premiums in the individual insurance market will be a little higher, employer-sponsored insurance premiums for big companies will be a little lower and employer-sponsored insurance premiums for small companies will stay about the same."
Q. I’ve heard that I’m required to have insurance. When does that go into effect? And what sort of penalties will I face if I don’t comply?
A. Starting in 2014, most Americans will be required to have health insurance and could face federal penalties if they do not. Taxpayers will be required to indicate on their tax returns whether they have health insurance that meets minimal benefits standards, according to the Commonwealth Fund. If consumers do not have insurance by 2014, they would owe $95, or 1 percent of taxable income, whichever is greater. The penalty rises to $325, or 2 percent of taxable income in 2015, and then $695, or 2.5 percent of taxable income in 2016, up to a maximum of $2,085 per family.
Next time we'll talk about what the Affordable Care Act means for those of us on Medicare.
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