What
Tax Cut?
April
21, 2004
By Evelyn Pringle
Any long-term financial benefit anticipated from the Bush
tax cuts has likely gone right out the window to the rising
cost of health insurance and out-of-pocket medical expenses.
According to recently released numbers by the Department
of Health and Human Services, health care spending went up
9.3% in 2003, and 8.5% in 2002. Family health care now accounts
for nearly 20% of all personal income in this country.
According to the Employer Health Benefit Survey by the Kaiser
Family Foundation, in 2003, premiums for employer-based health
insurance rose by 13.9% to $3,383 for individuals and $9,068
for families.
Overall, in the 3 years since Bush took office, rates have
risen 37% for individuals and 41% for families, and out-of-pocket
employee medical expenses not covered by insurance have risen
nearly 50%.
Retirees are now paying more for health care but getting
less. 71% of large employers have increased the amount that
retirees must pay in premiums towards their employer-based
plan. Yet, even after raising premiums, 7 in ten companies
still plan to raise retiree deductibles over the next 3 years,
and one in ten plans to eliminate insurance benefits for future
retirees altogether.
Hikes in Medicare premiums have really hurt retired seniors
on fixed incomes. Since Bush took office, monthly premiums
for Medicare Part B have risen 46%, and they are expected
to increase another 13.5% this year.
The pharmaceutical industry is not only one of the largest
Bush contributors, it is also the most profitable industry
in the country. Its desire for profits is a driving force
in the rise in prescription drug costs.
In just one year, the price of the 10 most commonly used
drugs went up an average of 8.7%. Prescription drugs now account
for 23% of out-of-pocket medical expenses across the board.
As a result of a contributor payback provision in the Bush
Medicare Bill, many seniors will end up paying higher fees
for prescription medication. The provision prohibits Medicare
from negotiating for lower prices with drugmakers, and it
blocks the importation of cheaper drugs from countries like
Canada.
You know it represents blatant contributor influence-peddling
when a guy like Senator John McCain, a member of Bush's own
party, describes the prohibition as a "a living, breathing
testimonial to the political influence of the pharmaceutical
companies."
Those people still wondering what happened to their money
from the Bush tax cuts, should check to see how much they
lost over the past 3 years during visits to a doctor, hospital
or pharmacist.
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