“Obamacare” and the Government Shutdown Ms. Jerome

Essential Questions  What is the role and what should be the size of government in America?  How much government intervention should there be in individuals’ lives?

Getting Caught Up to Speed. The Run Down  The government fiscal year begins on October 1 st.  According to the Constitution, Congress has the responsibility of determining the federal budget.  Republicans and Democrats came up short in Congress and couldn’t agree on a budget for the fiscal year.  Republicans in the House of Representatives are hoping to defund the new health care law (dubbed “Obamacare”)  The Affordable Care Act (official name)  “Obamcare” is being used as a bargaining chip as those opposed to it hope to undercut its spending.  They are willing to disrupt the government funding in order to attain their goals

Some Basics  Obamacare was signed into law by Barack Obama March 23 rd 2010  The purpose is to ensure that all Americans have health insurance.  Health insurance is a way to pay for health care.  Individuals who have health care pay monthly for coverage. This cost is called a premium. If you get sick or need any medical attention (check-up, ER, surgery etc.) your health insurer will pay all or some of your medical costs.  Plans and the degree of coverage differs from plan to plan.

Where do Americans get their coverage from? Obamacare focuses on the “uninsured”

Who needs coverage  85% of Americans are covered already. 15% are not covered.  50% of Americans get covered through their employer. This means that they get insured through their work.  About 30% are on Medicare or Medicaid:  The elderly can get medical coverage through Medicare. This is a federally funded program that provides coverage to the elderly.  Medicaid, unlike Medicare, is a state sponsored program that offers health insurance to individuals who fall into a certain level under the poverty scale.  Part of Obamacare includes expanding Medicaid. An expansion of Medicaid would insure millions of more people who fall below the poverty line.

Who is not covered?

Why does Obama think universal health care is necessary?  When somebody does not have health insurance they are less likely to seek preventative treatment (blood tests to detect illness, prenatal care, mammograms, other cancer screenings, yearly doctor visits etc.)  This is potentially dangerous to society. Nobody benefits from an unhealthy society.  When somebody who is UNINSURED gets sick, they are still treated.  i.e. if somebody who is uninsured gets into a car accident, even though they don’t have health insurance, they will still get treated.  When uninsured patients can’t afford their medical bill, the cost of this care is passed on to the insured in the form of higher premiums.

It’s Long and Complicated… So let’s simplify  Obamacare MANDATES that everybody becomes insured by January 2014  It provides subsidies for low-income families to buy health insurance  A subsidy is financial support form the government.  Supporters of Obamacare say that the overall goal is to lower health care costs, and provide better health care, for society at large.  Those opposed argue that the government does not have the right to require that everybody has health insurance.

How will those 15% pay for health insurance? m/watch?v=E45xOGIc GWo#t=35

What is the FPL and why is it important?  The FPL is the “Federal Poverty Limit”  According to Investopedia:  The set minimum amount of gross income that a family needs for food, clothing, transportation, shelter and other necessities. Public assistance programs, such as Medicaid in the U.S., define eligibility income limits as some percentage of FLP.  If you make under 100% of the FPL your state must pay for Medicare on your behalf.

400% FPL  The income limit for getting lower cost premium for health care plan is under 400% of the FPL. This is about $45K/year for one person  Based on your income you are only required to pay a certain percentage towards your insurance- the government will pay a subsidy for the cost level.php

The FPL Chart

WHO HELPS FUND THE GOVERNMENT SUBSIDIES?  Obamacare taxes individual earning above $200,000 a year  All employers with more than 50 workers have to pay for their employees health insurance  Employers with under 25 full time employees, whose average income doesn’t exceed $50k, can apply for tax credits up to 30% for insuring their employees.  Other taxes are explained on the website listed below taxes.php

Is it Constitutional for the GOVERNMENT to Mandate that the American people PURCHASE health care?  On June 18 th 2012 the Supreme Court upheld the constitutionality of Obamacare on the basis that it is a tax and Congress has the right to tax.

Why did the government shut down?

Congressional Breakdown  House of Representatives: 241 Republicans and 198 Democrats  Senate: 47 Republicans and 51 Democrats and 2 Independents.  Particularly Tea Party members who are fighting Obamacare  Tea Party:  Conservative movement in the United States.  Formed in response to Obamacare  Is against big government

Five Steps to creating a federal budget  Step 1: The President submits a budget request to Congress  Step 2: The House and Senate pass budget resolutions  Step 3: House and Senate Appropriations subcommittees “markup” appropriations bills  Step 4: The House and Senate vote on appropriations bills and reconcile differences  Step 5: The President signs each appropriations bill and the budget becomes law

What happened this week?  The Republicans in the House passed two spending bill amendments Sunday morning—one would delay Obamacare for a year and one would repeal certain aspects of Obamacare.  The bill went to the Senate where the Democrats (who control it) REJECTED the House proposal.  The House made a new proposal that would remove other aspects of Obamacare which the Senate again shut down….  This set the stage for a SHUTDOWN

Has this happened before? And What is the outcome?  This shutdown is the first since late That one lasted 21 days, into  Most of the 3.3 million federal government workers are deemed "essential" -- they'll keep working. But more than 800,000 government employees will sit at home, according to a CNN analysis.  Many of the furloughed federal workers are supposed to be out of their offices within four hours of the start of business Tuesday.

Useful Video Link on Obamacare 

Opinions Republican John McCain GsaPw "I intend to speak in support of de-funding Obamacare until I am no longer able to stand, to do everything that I can to help Americans stand together and recognize this grand experiment three and a half years ago is quite simply not working." Tea Party Republican Ted Cruz (TX)

Has your opinion changed?  Many Americans have opinions on Obamacare but might not know all the facts. After this presentation and your own research, do you support this reform? Why or Why not?