Obamacare throws two more punches at middle class

Yesterday, I told you about some of the changes we’ll all face in 2014 when the full brunt of Obamacare hits. The wealthiest in this country will flock to “concierge-style” healthcare. They’ll pay a bundle for it. But in return, they will receive excellent, personal care.

The rest of us will be left holding our often-worthless insurance cards and our empty wallets.

Higher payroll taxes already take a bigger bite out of middle-class paychecks. The middle class also face stagnant or shrinking take-home pay. And now, it will bear the cost of soaring insurance premiums.

Two other changes brought about by the Affordable Care Act will mainly hurt middle-class families…

First, the new law will cap flexible spending accounts at $2,500 each year. Flexible Spending Accounts allow families to use pre-tax dollars to pay for special needs education and other medical expenses. Secondly, before Obamacare, you could deduct medical expenses off your taxes if they exceeded 7.5 percent of your income. But under the new law, you can only deduct medical expenses once they exceed 10 percent of your income.

You could always drop your medical coverage all together. And pay out of pocket for care–and pay a penalty to the government for not carrying insurance. In fact, according to the New York Times article, this will become a growing trend. Especially among healthy men and women. But even then, you’ll still have to pay up. In fact, you’ll pay a penalty of up to 2.5 percent of your income if you fail to carry health insurance. This in addition to the 2.5 percent you already have been paying through the “payroll” tax for someone else’s health insurance through Medicare.

Obamacare does nothing to “reform” or improve our healthcare system. It moves America in exactly the wrong direction. Away from natural, affordable and sustainable health. We’ll face treatment that is ever more expensive. With more expensive drugs and hospital-based care. And government control. And the power and profits will stay with health insurance companies, drug manufacturers and their government enablers.

You have seen a few “good” things in Obamacare the past couple years since it was (barely) passed.  Now that the President has been safely re-elected, get ready for the rest of it!

Sources:

1. http://www.fool.com/investing/general/2013/04/09/5-ways-obamacare-will-fail.aspx

 


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