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FACTS

Every Indiana citizen affected by ‘Obamacare’
National health care bill could have negative repercussions on Hoosiers

By State Sen. Dennis Kruse (R-Auburn)

STATEHOUSE – More taxes and government spending? Rationed care? Job cuts? Higher premiums?

All of the above could happen in Indiana when the historic national health care plan goes into effect. Where Hoosiers are concerned, many may find President Barack Obama’s cure to the nation’s health care ills worse than the disease.

Indiana stands to see many negative repercussions if the historic law remains unaltered:

  • Obamacare will mean more taxes and more government spending during a deep recession. Numbers from the independent Congressional Budget Office (CBO) show the expanded federal role in health care creates a $940 billion pricetag over 10 years. Indiana’s share is an estimated $2.4 billion for the same 10-year time period;
  •  Indiana Family and Social Services Administration (FSSA) Secretary Anne Murphy has already identified a $25 million immediate cost to the state in the form of lost Medicaid prescription drug rebates for fiscal year 2011. FSSA’s analysis shows this cost increasing each year, eventually costing the state $400 million over the next ten years; and
  • An estimated 500,000 additional Hoosiers would qualify for Medicaid, exploding the cost to the state for delivering services under the program. Figures show one in four Hoosiers would be on public assistance under the plan.

Meanwhile, the Healthy Indiana Plan (HIP) would be eliminated as the new federal rules would force Indiana’s 45,000 families who are currently covered into the Medicaid fee-for-service model, losing the cost savings and quality care advantages of our consumer-driven health care.

You may remember a Kruse report a few months ago covered the topic of health care shortages. Through Obamacare’s massive expansion of eligibility for Medicaid, hundreds of thousands of additional patients will be searching for doctors and nurses at a time when there is already a shortage of both.

With the number of patients rising and the number of doctors and nurses already too low, it will be hard to suggest avoiding health care rationing in Indiana.

One of the most painful truths about Obama’s recently passed health-care legislation is the impact it may have on Hoosier jobs, because of massive new taxes on Indiana employers:

  • A growing and job-creating life sciences sector in Indiana will be among the hardest hit;
  • New taxes under the plan include at least $20 billion for medical device manufacturers and $90 billion for pharmaceutical companies. These will directly impact Hoosier employers like DePuy, Inc. in Warsaw (employs 3,500 Hoosiers), Eli Lilly in multiple locations around Indiana (employs 14,700 Hoosiers); and Medtronic, Inc. in Indianapolis, Fort Wayne and Evansville (employs 500 Hoosiers); and
  • A job-killing tax of $2,000 per employee will be levied on many Indiana companies which cannot afford to provide coverage to their employees. Many Hoosier businesses are struggling to survive the deep national recession as it is. This new expense will likely force some to consider closing their doors or laying off their workers.

Recently, Indiana joined 13 (now 18) other states legally challenging the constitutionality of Obamacare's requirement that all Americans purchase health insurance. Never before has our government forced citizens to purchase a specific product. Now, Congress has for the first time in history mandated all Americans purchase a product – in this case, health insurance – or face personal penalties up to $750 each.

What do you think?