FixHealthCarePolicy

Obamacare Increases Unemployment, Insurance Premiums, Deficit, and Debt

President Barack Obama and congressional leaders claim that the Senate health bill, which will likely face a vote in the House by the end of the week, will decrease the deficit and bend the cost curve related to health care spending. However, recent analysis by The Heritage Foundation’s Center for Data Analysis (CDA) shows that this is far from true. Instead, the bill’s mandates and numerous new taxes will have tumultuous effects. Passing Obamacare will come at the expense of the American people as it would grow the federal debt, increase premiums, and stifle economic growth.

The Senate bill would have disastrous effects on the economy and federal spending. CDA shows that the bill:

– Increases the federal deficit and national debt. The Congressional Budget Office shows deficit neutrality for the Senate bill—however, this is based on static analysis which ignores the effects new taxes and an individual and employer mandate would have on economic growth. These provisions would decrease investment in the economy, resulting in lower wages and salaries. This means less taxable income, lowering federal revenues and growing the debt. Increased borrowing puts upward pressure on interest rates causing some private sector productive investment opportunities to be foregone. This also increases the interest owed on the national debt, such that the government would pay, on average, $20 billion more in interest between 2010 and 2020. By the end of the decade, CDA estimates the publicly held debt would be $755 billion dollars more than under current law. (more…)

Tags: deficit, jobs, mandates, national debt, premiums, senate health care bill, taxes, unemployment

Video of the Week: “We have to pass the bill so you can find out what is in it”

You might have seen this week a stunning demonstration of political condescension on the health care front. In remarks at the 2010 Legislative Conference for the National Association of Counties, House Speaker Nancy Pelosi said, “But we have to pass the bill so that you can find out what is in it, away from the fog of controversy.”

This revealing comment reinforces a patriarchal (or in Pelosi’s case matriarchal) attitude Congress has taken with the American public: What lurks within the House and Senate health care bills will be revealed in the fullness of time, and it’s really good for us if we only knew better. (more…)

Tags: House Speaker Nancy Pelosi, Individual Mandate, ObamaCare, reconciliation, Senate Health Bill, taxes, taxpayer-funded abortions

Morning Bell: A Sham of a Summit for a Sham of a Bill

Today’s White House-sponsored health care summit is an insult to the intelligence of every honest American. President Barack Obama’s communications minions are still trying sell his plan as an “opening bid” in the health care debate. But as Washington Post columnist Ruth Marcus asks: “With whom is he bidding? The public dance is with Republicans, but this is hardly serious. The White House does not enter Thursday’s summit expecting Republicans to make a deal.” In fact, the President’s recently-unveiled plan is specifically designed to be passed without a single Republican vote. That is why the Washington Post reports this morning:

Although Obama is billing the White House gathering as an opportunity for Republicans to air their ideas for reform, Democrats do not expect it to reveal much common ground and are showing little willingness to abandon the basic outline of legislation that the House and Senate have approved.

The real target of today’s summit are the 38 Democrats in the House who voted against Obamacare the first time. While Obamacare passed the House 220-215, Speaker Nancy Pelosi (D-CA) told reporters yesterday she is not sure if she has the votes this time around. The passing of Rep. John Murtha (D-PA) and the retirements of Reps. Robert Wexler (D-FL) and Neil Abercrombie (D-HI) have cost her three votes, and the inclusion of taxpayer-funded abortions in the Senate and White House plans will cost the vote of the only Republican to vote for the plan the first time around, Rep. Joseph Cao (R-LA), as well as Rep. Bart Stupak (D-MI) and 15 to 20 additional pro-life Democrats. (more…)

Tags: Health Care Summit, health insurance, President's proposal, start over, taxes

The President’s Health Proposal: Further Jacking Up the Cost of Care

In anticipation of the February 25^th health care summit with members of Congress, the President released his proposal for pricey, government-run health care. The White House estimates the cost of the proposal to be $950 billion over a decade, decreasing the federal deficit. However, health policy expert James Capretta, a former senior official of the Office of Management and Budget (OMB), shows in a recent paper that this is not only inaccurate, but far from reality.

Capretta’s research shows that ten full years of implementation of the President’s proposal would cost closer to $2.5 trillion, with the strong likelihood of far exceeding this amount. Here’s how:

• The President’s proposal ignores “doc fix” legislation, which would cost roughly $200 billion over ten years. As Capretta notes, it is ironic that the President does not account for this provision, but includes several other Medicare provisions in his proposal.

• Non-coverage spending would add about $90 billion to the cost of the bill.

• Cost estimates for the President’s plan should apply to the ten year window from 2011 to 2020—not to 2019. This would add approximately $200 billion more to the cost of the bill. (more…)

Tags: CLASS Act, doc fix, health care costs, ObamaCare, OMB, President's proposal, taxes

VIDEO: Obamacare Doesn’t Help Young Adults

President Obama says the health care reform bills before Congress will make health insurance more affordable and accessible for young Americans. Think again.

As Heritage’s Paul Winfree explains, some of the promises the President makes are too good to be true. That truth involves higher costs and stiff penalties.

Watch Winfree’s video, and be sure to share it with others. What do you think about the President’s promises? Join the debate in our comments section below.

Tags: Individual Mandate, ObamaCare, premium increase, taxes, young adults

Is Congress Exempting Itself From Health Insurance Tax?

It is still far from clear what the White House’s new strategy to pass health care reform will be in the face of Scott Brown’s election to the Senate. But according to Federal News Radio negotiations between the House and Senate are still ongoing, including this victory for House Democrats:

Federal employees covered under some of the more expensive plans in the Federal Employees Heath Benefit Program now have some breathing room as well.

Federal workers had been left out of an earlier compromise on health care reform shielding union workers from a proposed 40-percent excise tax until 2018.

The office of Rep. Gerald Connolly (D-Va.) says he “personally called the White House to express his concern of leaving federal employees out of the deal.” An agreement reached Wednesday extends the exemption to federal employees through 2018 as well.

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Tags: Cadillac Plans, congress, ObamaCare, taxes

Senate Votes Obamacare One Step Closer to the Finish Line

The Senate voted this evening by a 60-39 majority to commence debate on Senate Majority Leader Harry Reid’s bill that would radically expand government control over private health care decisions. The bill is over 2000 pages long, costs an estimated $2.5 trillion over the first ten years of implementation and carries a half trillion dollars in new taxes. Many Americans have to be thinking right now — they have heard from their dissenting constituents at Town Hall meetings and have seen the poll numbers for Obama’s health care bill dropping like a rock so why would they keep moving this bill forward?

This debate will center around many issues including huge taxes increases, economy-killing employer mandates and:

1. Abortion: Congressman Bart Stupak (D-MI) offered an amendment to the House bill to ban all federal funds flowing into the health care system from funding abortion. Senator Reid put language in the bill that allows some funds to go to abortion services by using an accounting gimmick. This issue could take the bill down, because the House approach is far different from the Senate approach. If this bill becomes a referendum on abortion policy, it may fail. (more…)

Tags: abortion, cost, Harry Reid, Landrieu, Lieberman, Lincoln, mandate, Nelson, Obama Health Care Plan, ObamaCare, public plan, Senate, Snowe, Stupak, taxes

NFIB: Senate Health Care Bill Is “A Disaster” for Small Businesses

After “many months of discussion” in which the National Federation of Independent Business was engaged in efforts to ensure that the high cost of health care was adequately addressed in reform legislation, the organization yesterday came out in full force against the Senate health care bill, declaring it a “disaster for small business:”

Small business can’t support a proposal that does not address their No. 1 problem: the unsustainable cost of healthcare. With unemployment at a 26-year high and small business owners struggling to simply keep their doors open, this kind of reform is not what we need to encourage small businesses to thrive.

We oppose the Patient Protection and Affordable Care Act due to the amount of new taxes, the creation of new mandates, and the establishment of new entitlement programs. There is no doubt all these burdens will be paid for on the backs of small business. It’s clear to us that, at the end of the day, the costs to small business more than outweigh the benefits they may have realized.

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Tags: business, Harry Reid, health care, NFIB, ObamaCare, small business, taxes, unemployment

With Reid Bill, Obama Would Again Break “No Tax” Pledge

With the event horizon of the vote on the Reid Health Care Bill approaching, it appears that passage of the legislation would, yet again, amount to President Barack Obama breaking his “no new middle class tax” pledge.

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Tags: Barack Obama, Harry Reid, health care, no tax pledge, ObamaCare, pelosi, taxes

The Senate Health Bill: Higher Taxes from Harry Reid

In order to pay for a massive health care bill (H.R. 3590), Majority Leader Harry Reid (D-NV) creates a host of new taxes. These taxes will total $370.2 billion in the next ten years, and many of the taxes will start being collected in 2010, even as the economy continues to struggle.

The most shocking tax increase is a payroll tax increase that will permanently sever the link between the Medicare Payroll tax and its contributions to Medicare. This payroll tax increase of .5% on earnings above $200,000 for singles and $250,000 for joint couples will contribute money to the general fund for health care instead of directly for Medicare payments.

This change means that Medicare taxes are no longer solely dedicated to social insurance and safeguarding Medicare. Instead, Medicare payroll taxes will be used for other government programs. It is ironic, that the shift emerges from the liberals as they have long been worried about turning social insurance programs into welfare programs that redistribute wealth. The Reid payroll tax is a huge step down the road of using social insurance payroll taxes as regular taxes to transfer income. (more…)

Tags: double digit unemployment, Medicare, Obama Health Care Plan, payroll tax, taxes