The Obama Experiment

Obama’s Government-Run Health Care Experiment Will Make Health Insurance More Expensive

American Taxpayers And Businesses Will Be Shouldered With Over $1.6 Trillion In New Spending And $800 Billion In New Taxes To Pay For Government-Run Health Care. “Democrats argue the number should be $1 trillion, a number provided by the Congressional Budget Office for the net cost of the portion of the bill affecting health insurance, and they boasted in press releases that the bill actually creates a $6 billion surplus over the coming decade. But the gross cost of the bill is much higher, more than $1.6 trillion, according to a Roll Call analysis of the CBO data. And despite more than $800 billion in tax and fee hikes, it actually adds $239 billion to the deficit …” (Steven Dennis, “Analysis: House Health Care Bill’s Price Tag Tops $1.6 Trillion,” Roll Call, 7/20/09)

Even Obama’s Budget Director Acknowledges His Proposal Won’t Make Insurance More Affordable. “The rapidly rising cost of health care, Obama has said, is ‘a threat to our economy’ … So a critical test of the health reform proposals lumbering through Congress is whether they defuse that bomb. The answer, so far, is no. That was the message … Peter Orszag sent to the chairs of three House committees that released a ‘discussion draft’ of legislation last month … As Mr. Orszag put it, ‘Adopting a deficit-neutral health reform that expands coverage … is not enough, because it would perpetuate a system in which best practices are far from universal and costs are too high.’” (Editorial, “Health Care Savings,” The Washington Post, 7/13/09)

National Insurance Czar Will Create Strict, One-Size-Fits-All Regulations For Health Coverage, Leading To Higher Premium Costs. “A qualified health benefits plan shall meet a medical loss ratio as defined by the Commissioner. For any plan year in which the qualified health benefits plan does not meet such medical loss ratio, QHBP offering entity shall provide in a manner specified by the Commissioner for rebates to enrollees of payment sufficient to meet such loss ratio … The Commissioner shall build on the definition and methodology developed by the Secretary of Health and Human Services under the amendments made by section 161 for determining how to calculate the medical loss ratio. Such methodology shall be set at the highest level medical loss ratio possible that is designed to ensure adequate participation by QHBP offering entities, competition in the health insurance market in and out of the Health Insurance Exchange, and value for consumers so that their premiums are used for services.” (H.R. 3200, “America’s Affordable Health Choices Act of 2009,” Introduced 7/14/09)

Obama’s Plan Will Force People To Pay Tax If They Don’t Want To Buy Government-Approved Insurance. “Don’t have health insurance? Don’t want to pay for it? Too bad. It’s looking like President Barack Obama and the Democratic-controlled Congress are going to require you to pick up the bill. In Washington-speak, it’s called an individual mandate–or a requirement that people who don’t already have health insurance to purchase it, much like most states require drivers to have automobile insurance … Any plan is likely to be modeled after one in Massachusetts, which required that virtually everyone have health insurance or face tax penalties.” (Liz Sidoti, “No Health Care? Expect A Requirement To Get It,” The Associated Press, 6/22/09)

Obama’s Plan Will Tax Companies Which Don’t Provide Insurance To Their Employees. “The research and data on the devastating impact of an employer mandate is clear – it is a job killer, potentially costing 1.6 million jobs– hardly what this country needs in these challenging economic times. Fundamentally, a mandate fails to address the real problems of our healthcare system – unsustainable costs.  Adding new, additional burdens to small business owners – especially in the form of an expensive mandate – is not an effective approach to reform. In fact, it burdens the very people we are supposed to be trying to help.”  (National Federation of Independent Business, “Health Reform Must Help, Not Harm Small Businesses,” Press Release, 6/10/09)

Obama’s Plan Does Nothing About Medical Liability Reform Or Reducing Practice Of Defensive Medicine, Both Of Which Drive Up Costs. “Obama and lawmakers need to return to the drawing board, and when they do they should include medical liability reforms that would be a true counter-force to rising health care costs.” (Editorial, “Cost control: Liability Limits Needed In Reform,” The Oklahoman, 7/26/09)

Republican Plans Will Make Health Insurance More Affordable

Republican Plans Will Provide Tax Relief To Make It Easier For Uninsured Americans To Get Coverage, And Help Insured Americans Pay For Their Current Coverage. Sen. Mitch McConnell (R-KY): “To get to the problem of uninsured, we have to equalize the tax code. Business provides health insurance for its employees. If an individual buys insurance, it is not deductible. Number two, we should be incentivizing wellness programs targeting smoking, obesity, high cholesterol, high blood pressure, and lack of exercise. Safeway have been able to cut health-care costs by incentivizing employees to take good care of their health. Those are the kinds of steps that we could take to really address the problem of access and cost without scrapping the finest health care in the world.” (FOX News’ “America’s Newsroom,” 7/16/09)

Republicans Will Allow Small Businesses And Self-Employed To Group Together, Making Coverage More Affordable. “This legislation creates expanded options for the purchase of low-cost health care from new pooling mechanisms.  Today, the only health insurance pool available to Americans is their employer’s pool.  Americans not in an employer-sponsored pool buy in what is called the ‘individual market.’  The Improving Health Care for All Americans Act dramatically expands the insurance pools Americans can select to join by allowing churches, alumni associations, trade associations and other civic groups to set up new insurance pools and offer affordable health care packages to their members.  Instead of having only one group policy to choose from, under this bill, every American will be able to choose from a number of ‘group plans.’  This will make health care more affordable and portable while not locking individuals into staying at a job simply to keep their health coverage.  Families should not be forced to choose between leaving their employer and having health care.” (Rep. Shadegg (R-AZ), “Republicans Introduce: The Improving Health Care for All Americans Act,” Press Release, 7/14/09)

Republican Plans Will Make Insurance Portable By Allowing Americans To Keep Coverage When Changing Jobs. “[The bill] takes a radically different approach in contrast to what has been discussed by President Obama as well as Democrats in both chambers.  It gives people choice and places American families back in control of their plans and their health care.  This legislation will reduce the cost and improve the quality of health care while expanding access and portability.” (Rep. Shadegg (R-AZ), “Republicans Introduce: The Improving Health Care for All Americans Act,” Press Release, 7/14/09)