NOTE TO STUDENTS: Many adults do not understand the new health care law. If you begin to gain an understanding of the issue, you are doing great! We suggest that you ask a parent to read this article, and review your answers.

1. Where will Congress get the $500,000 billion needed to pay for the new health care legislation over the next ten years?

2. Define the following as used in the article:
-Medicare
-levies
-capital gains
-dividends
-excise tax

3. By how much will some people's Medicare taxes on their salaries be raised?

4. Until now, the government has been paying for Medicare from taxes taken from salaries people earn at their jobs. On what other income will Medicare taxes be taken from for the first time? (CHALLENGE: What taxes have previously been taken out of this income?)

5. "Cadillac" plans have low or no co-payments, low or no deductibles, few limits on how much you can spend, and no need for prior authorization, i.e., to get special permission before you get treated by a specialist.
a) As a presidential candidate, Barack Obama said that he would raise taxes on Americans earning over $200,000 a year individually, or over $250,000 as a couple ("rich" Americans). How will the new tax on "Cadillac health insurance plans" affect Americans who make under $200,000, many of whom are union workers (truck drivers, construction workers, teachers, etc.) who hold these plans?
b) Do you consider these taxes to be tax increases on the affected individuals?

6. How will new taxes on the pharmaceutical industry, medical-device manufacturers and health insurance providers affect the average American?

7. How does the Democrats' new health care law change medical deductions on income taxes?

8. a) In addition to employers with more than 50 workers, who else will be required to purchase health insurance?
b) What will happen to people who do not comply with the government mandates on health insurance (people who do not do what the law now requires)?