Health Care Reform: What It Will Cost You

>> For a moment, let's not talk about whether health care reform is going to turn the U.S. into a socialist state, or to take the other side, finally civilize America. Instead, let's talk about what health care reform could end up costing. Not the government, but you. This single piece of legislation could have more influence over your financial future than any law passed this decade. Here's what you need to know. First, if you're insured through your employer, and the company pays the bulk of your premiums, that won't change under any of the current proposals. But it is likely that you'll end up paying a bigger share of your premiums. Today employers on average cover 84% of an individual's premiums and 73% of a family's. But under the Senate's version of reform, companies don't have to pay more than 60%. If your company responds by paying less of your premiums, guess who will be stuck with the bill. Second, remember that your employer receives a tax break for providing health insurance. Some reformers want to close that loophole. That means you may have to pay higher premiums or maybe taxes on a portion of your benefits. Lastly, any reform will be expensive, and Uncle Sam will have to raise taxes to pay for it. The House bill raises taxes on single people with an annual income of more than $280,000 and on families with more than $350,000. Those high thresholds allow Democrats to say they kept their promise not to raise taxes on the middle class. We'll see whether soaking the rich will be enough. One suspects the middle class will end up paying anyway.

MUSIC

==== Transcribed by Automatic Sync Technologies ====