The Massachusetts health-care program provides a clear blueprint for what would happen nationwide under ObamaCare: Increased demand and decreased supply would raise costs and lengthen lines; increased mandates would increase costs still further; and increased costs would lead to employers bailing out and insurers going out of business, with government-run health care being the inevitable end-result.
The costs of Canada’s government-run health-care system are spiraling out of control — eating up about 40 percent of provincial budgets and providing further evidence that ObamaCare’s government-centered approach almost certainly won’t be able to contain costs without rationing care.
President Obama promised that his health-care overhaul would not raise deficits by “one dime,” but the “doc fix” that it neglects to cover will raise deficits by $247 billion.
“[T]he push to replace physicians with ‘physician extenders’ could end up increasing costs.”
ObamaCare’s Community Living Assistance Services and Supports (CLASS) Act — with its design that invites adverse selection by precluding the ability to adjust premiums for health risk — is yet another entitlement program that is destined to add to the federal government’s unfunded obligations.
After much discussion about the need to bend the cost curve down, and Democratic assurances that ObamaCare would do just that, a report by the Medicare Chief Actuary has predicted that costs will in fact rise – estimating that the health care overhaul will actually increase health care spending by $311 billion over the next decade.
This week, we learned that the Obama administration is orchestrating a $125 million propaganda campaign to sell the recently enacted health-care law to the public. That effort will be funded by labor unions and other groups from the Democratic political orbit. It comes on top of the misleading government mailer sent to the nation’s seniors, at the expense of taxpayers, touting the supposed benefits of ObamaCare for the elderly. On Tuesday, the president himself will join the fray again to make the sales pitch, this time promoting the colossal waste of taxpayer money associated with $250 per senior bribes to be issued this summer and fall.
The problem the White House has, however, has never been insufficient public relations spin. The problem is the substance. Americans care deeply about their health care, and they have seen right through the Democratic rhetoric on ObamaCare from day one. They know that it is a poorly conceived experiment, built on the flawed assumption that the problems in U.S. health care can be solved with heavier regulation, subsidization, and micro-management from Washington, D.C.
In Medicare, the results of the new law will be disastrous. ObamaCare will cut payments to the private insurance component of the program (called Medicare Advantage, or MA) by nearly $200 billion over ten years. The chief actuary of the program says this cut will eventually drive 7 million seniors — many with low-incomes — out of the plan they would prefer to enroll in. And it will mean thousands of dollars in benefit reductions for every MA enrollee, beginning next year. These seniors won’t be silenced with patronizing and one-time checks. In addition, the new law imposes arbitrary price cutting for all manner of Medicare services, which the chief actuary says will harm access to care by forcing scores of institutions to stop taking Medicare beneficiaries.
Last week, we learned that the National Association of Insurance Commissioners (NAIC) has postponed issuing guidance on the ill-conceived “medical-loss ratio” requirement in the new law because, as passed by Congress, it will cause massive and unnecessary disruption to millions of current insurance enrollees. One estimate is that 1 to 2 million people with individual insurance will lose their coverage if the requirement is imposed because national insurers will be forced to exit the market to avoid large business losses.
The president has said repeatedly that Americans will get to keep the insurance they have today if they like it. But that’s quite clearly not going to be the case. Douglas Holtz-Eakin, of the American Action Forum, has released a new study that shows some 35 million Americans will get bumped from job-based coverage under the new law and be forced into the new government-managed system. That’s because the massive new subsidies promised by the government will make dropping insurance unavoidable for thousands of employers. He also predicts the migration out of employer plans will drive up the overall federal costs dramatically, adding another $500 billion over ten years to the costs projected by the Congressional Budget Office for the bill.
Perhaps that why CBO’s Director, Doug Elmendorf, is saying that the federal government’s health costs are still unsustainable, even after passage of the new law, despite repeated presidential promises that ObamaCare would solve our budget problems by painlessly “bending the cost curve.”
The truth is, the more we learn about ObamaCare, the worse it gets. It’s filled with budgetary gimmicks and flawed assumptions that will bankrupt the U.S. treasury. Its taxes will force deep cuts in employment in the medical device and other industries. Restaurants and other employers will have strong incentives to avoid hiring workers from low income households in order to lessen the burden from the law’s mandates and penalties. It will disrupt insurance for millions of Americans who are perfectly happy with the coverage they have today. And the government’s clumsy cost-cutting efforts will undermine the quality of American medicine.
Most Americans already instinctively understand all of this. But it’s also clear that the administration and its allies will spend millions trying to persuade them that up is down when it comes to health care. We have launched this web site to set the record straight. ObamaCareWatch.org pulls together all of the best evidence and analysis about the legislation, as well as relevant news items and commentary, in an accessible and searchable format for anyone to use as they need to. Our aim is to provide Americans with the facts so that they can hold those who sponsored and passed ObamaCare accountable for what they have done.
After a series of projections by independent experts and revelations by businesses, Americans are becoming increasingly aware that ObamaCare is anything but a cost-cutter.
As the true costs of ObamaCare keep coming to light, Americans’ desire for repeal — merged with their concerns over jobs, spending, and deficits — will likely produce a “wave” election.
Funding to cover the uninsured in state-based, high risk pools until the new insurance subsidies are rolled out is woefully inadequate and would cover less than 10 percent of those eligible, according to studies.