General Discussion
In reply to the discussion: Daring to Complain About Obamacare [View all]VanillaRhapsody
(21,115 posts)How are the subsidies paid for? Are my taxes going up?
There are essentially two big funding streams for the Affordable Care Act. The first are cuts to Medicare reimbursements. We heard a lot about this during the presidential campaign, when Mitt Romney would talk about the law cutting $716 billion from Medicare. These are cuts largely to the rates that we pay doctors who see Medicare patients, and also what we pay private insurers that cover these subscribers.
The other big funding source are taxes on different health care industries like hospitals, insurance companies and, more relevant in recent days, medical device makers. There's a debate about whether those taxes will get passed on to consumers, but, as it stands, they're not direct taxes on you as an individual.
There is one tax that is applied to some individuals, which began last year: The Affordable Care Act raised taxes on investment income for people who earn more than $200,000.