WASHINGTON - After spending hours in debate, House Speaker Nancy Pelosi announced that the $1.4 trillion health care bill was approved by a narrow margin of 220-215 yesterday.Is this the start of Socialism? No, this isn't socialism, but what is making so many American’s nervous is the cost of this measure and the fact that a number of Democrats (39) and all the republicans, except one opposed it.
“Last night's decision was the proper decision for my district even though it was not the popular decision for my party,” Anh "Joseph" Cao, House Republican from Louisiana said.
One of the many issues and concerns is Democrats are ignoring that any American that chooses not to carry health insurance faces an IRS tax penalty that would range between $750 to $3,800 labeled as an “Excise Tax” even though President Obama stands firm by saying it is not a tax.
“For us to say that you've got to take a responsibility to get health insurance is absolutely not a tax increase,” Obama said in a “George’s Bottom Line” interview with George Stephanopulous. “What it's saying is, is that we're not going to have other people carrying your burdens for you anymore than the fact that right now everybody in America, just about, has to get auto insurance. Nobody considers that a tax increase.”
This new plan is somewhat a copy of Japan’s healthcare system, the number one country in the world in government run healthcare, but their system has put its country in extreme debt.
In Japan, the average cost of healthcare insurance for a household is $530,000 yen per year and the government pays half of the bill. This is approximately $490 per month in the American dollars. This is an alarming rate for the lower class who can't afford healthcare insurance. For it to work in the US, the government has to at least pay half, if not more.
The Japanese government pays on average of 70 percent of the services rendered. Medicare on the other hand will pay 80 percent for some services, but actually pays an average of 42 percent for all services combined. What is saving Japan from going into world default is the fact that Japan only owes 10 percent of its debt to other countries while the US owes four-times that amount to Japan and China combined.
So, the issue isn't so much the plan, it is the cost and the risk it brings. Is it worth it for how much this measure is going to sky-rocket our GDP? Japan's GDP is 228 percent. The US is sitting at approximate 83 percent and this study was done in March. Now that the House is adding $1.4 trillion to the US debt, it's only going to go up as this healthcare bill continues. The US will soon be in the number two spot for the largest debt-to-GDP in the world.
Next, the Senate will meet to pass its own version of the health care bill. Once the Senate bill is passed, a congressional conference committee will be held to consolidate the two legislations for final approval by President Obama.
Citations
Analysis-How much debt is too much: http://www.forbes.com/feeds/reuters/2009/10/22/2009-10-22T172527Z_01_N22443509_RTRIDST_0_ECONOMY-DEBT-ANALYSIS-GRAPHIC.html
Debt Loads of G20 Nations: Japan, U.S. Deep in the Hole: http://seekingalpha.com/article/125072-debt-loads-of-g20-nations-japan-u-s-deep-in-the-hole
For US and Others, How Much Is Too Much Government Debt? http://www.cnbc.com/id/33435720
Landmark health insurance bill passes House: http://www.msnbc.msn.com/id/33748707/ns/politics-health_care_reform
President Obama on "This Week": http://www.realclearpolitics.com/articles/2009/09/20/president_obama_transcript_abc_this_week_98392.html Rising Debt a Threat to Japanese Economy: http://www.nytimes.com/2009/10/21/business/global/21yen.html
Rising debt a threat to Japanese economy http://www.themalaysianinsider.com/index.php/business/40981-rising-debt-a-threat-to-japanese-economy-
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