Musings

27 September 2013 - 14:10, by , in Musings, No comments

Healthcare

There seems to be some attention in the media about Healthcare and the partisan solutions attached to various programs…

I find it interesting that the conservative republicans are incensed about the introduction of the Affordable Health Care Act (AHCA) – aka Obamacare.

The estimated costs to the Government, in other words the deficit that it will create is around $1.37 trillion dollars over the next 10 years.

This number doesn’t debate the revenue and spending assumptions that have been factored into the model.

When compared to the Medicare Part D plan a Republican Party initiative introduced in 2004 that did not have a tax increase/revenue stream associated with it has a deficit cost of $1.22 trillion dollars over the next 10 years – not a peep is heard. 2

The partisan rhetoric is mind numbing and confusing.

Forecasting these numbers is difficult – Medicare Part D is coming in under 40% of projections from 10 years ago.  Who knows what the impact will be to the AHCA.

The reality is that Medical costs are growing quickly, the population is aging and most of the government programs are not adequately funded to meet the growing burdens of Healthcare costs. Warnings from the responsible agencies seem to go unheeded.3

The end result of this is that taxes will rise and government spending will become a larger component of the economy – which may result in slower growth of the broad economy and the potential for crowding out of private enterprise.

Opportunities will still exist – I just don’t think they will be as broad based as they were in the past. We must continue to focus on planning to manage taxes and be diligent in the search for opportunity.

 

 

 

 

1                           http://www.cbo.gov/publication/44190

2                           http://www.cbo.gov/publication/44190

3                           http://www.ssa.gov/OACT/TRSUM/index.html

About author:
Damien is the founder and owner of Lanyon Advisory Services and has a extensive knowledge and experience in financial planning and wealth management.

Leave a Reply