Disguised Health Insurance Subsidy Has U.S. Republicans Up in Arms
Democratic representatives are still struggling to address apprehensions about the healthcare bill. However, one massive health insurance subsidy is getting neglected in all the chaos. This subsidy is bigger than any subsidy offered to people under the (ACA) Affordable Care Act, subsidies certain democrats dislike and consider as minimum offerings. These subventions cost as much as $250 billion every year in the lost tax section to the federal government.
People receiving health insurance at their jobs are the ones who benefit through this subsidy. Substantial amount of time has been spent over debating about the replacement of Obamacare – the law that targets reduction in subsidies and Medicaid that allows people with lower incomes to purchase insurances.
Yet, economists have been arguing that to control skyrocketing healthcare costs, Congress needs to eliminate or scale back tax exclusions on the employer’s/company’s payment towards the employee’s insurance premiums. According to the ongoing law, these health insurance premiums are not a part of the income taxes or payrolls that are extracted from the employee’s salaries, a plan that can immensely benefit upper and middle income employees.
One simple tweak in the policy can drastically condense health care expenses, generate a steady health insurance market, and reduce the federal budget discrepancy by a whooping US$174 billion to US$429 billion within six years.
After months of deliberations, U.S. policymakers abandoned the idea, realizing how administratively explosive it can be. Nevertheless, as Congress looks forward to moving ahead with some chief alterations in the health and tax systems, US citizens are growing aware of how age-old tax subsidies have been contributing to monetary discrimination in the United States.
It has been seven years that US Constitutionalists have been fighting to revoke the ACA (Affordable Care Act). They state that the Medicaid expansion has been highly expensive and the subsidies offered to lower income insurance receivers are handouts in a certain manner. They request this issue to be addressed at the earliest.
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