Nancy Pelosi had her show, and now it is Harry Reid’s turn. The majority leader from Nevada seeks to impose new regulations on insurers and provide coverage to 31 million people who currently are without health insurance. New benefits are also to be added to Medicare. What does this all mean for us?
Before we explore that, we need to understand that this bill’s price tag is north of $840 billion over ten years. Early estimates are that it would reduce budget deficits by $130 billion over a decade if assumptions about new taxes and fees exceeding costs are to be believed. Reductions in the growth of Medicare is also assumed. Any time we count on new revenue to cover new cost, there will be considerable risk.
Senator Reid is seeking the votes of all 58 Democratic senators, as well as two independents who side with the Democrats. So far, it seems like everything is a go. But not so fast, say the Republicans, who have vowed to fight the legislation at every turn. Republicans will not accept an increase in the size of government to go along with increased taxes. Republican senator Orrin Hatch of Utah hints at what’s coming by stating “It’s going to be a holy war.”