HEALTHY WISCONSIN: THE MOTHER OF ALL DEFICITSBy Charlie SykesNew study from Wisconsin Policy Research Institute says that Dem's plans to take over health care will cost a lot more more than they say. Surprised?
With Wisconsin Democrats explicitly making Healthy Wisconsin a key campaign issue in their attempt to gain full control of the Wisconsin Legislature, new data cast doubt on the program’s ability to keep costs in line with revenues. A new report, Will Healthy Wisconsin Bust the State Budget? released today by the Wisconsin Policy Research Institute, details how this plan would turn every aspect of Wisconsin’s health care system over to state government. Authors George Lightbourn and Christian Schneider present facts to demonstrate how it is inevitable that the Legislature would, soon after passage of Healthy Wisconsin, be faced with an increase in the payroll tax that supports the initiative. It turns out that Healthy Wisconsin is founded on a fragile set of actuarial assumptions that suggest that the growth in health care costs can be brought closer to the rate of growth in wages. If that cannot be accomplished, given the assumptions put forth by the plan’s supporters themselves, the program will face a shortfall of between $4.79 billion and $10 billion by 2017. The tax rate on businesses will have to increase to 13.51% and on employees to 4.62% in order to keep the program solvent in just nine years.
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