Tag Archives: House Bill

The Wall Street Journal explains what Obamacare will mean to you

Amazing article in the Wall Street Journal. (H/T ECM)

Here are a few of the points made in the article.

1) The bill is being rammed through behind closed doors, with no Republican input.

Mr. Obama promised a new era of transparent good government, yet on Saturday morning Mr. Reid threw out the 2,100-page bill that the world’s greatest deliberative body spent just 17 days debating and replaced it with a new “manager’s amendment” that was stapled together in covert partisan negotiations. Democrats are barely even bothering to pretend to care what’s in it, not that any Senator had the chance to digest it in the 38 hours before the first cloture vote at 1 a.m. this morning. After procedural motions that allow for no amendments, the final vote could come at 9 p.m. on December 24.

2) Health care costs will increase if the bill passes.

The best and most rigorous cost analysis was recently released by the insurer WellPoint, which mined its actuarial data in various regional markets to model the Senate bill. WellPoint found that a healthy 25-year-old in Milwaukee buying coverage on the individual market will see his costs rise by 178%. A small business based in Richmond with eight employees in average health will see a 23% increase. Insurance costs for a 40-year-old family with two kids living in Indianapolis will pay 106% more. And on and on.

3) Americans will have fewer choices.

Unnoticed by the press corps, the Congressional Budget Office argued recently that the Senate bill would so “substantially reduce flexibility in terms of the types, prices, and number of private sellers of health insurance” that companies like WellPoint might need to “be considered part of the federal budget.”

4) The quality of care will be diminished.

Ultimately, “our capacity to innovate and develop new therapies would suffer most of all,” as Harvard Medical School Dean Jeffrey Flier recently wrote in our pages. Take the $2 billion annual tax—rising to $3 billion in 2018—that will be leveled against medical device makers, among the most innovative U.S. industries.

5) Your taxes will almost certainly increase.

Other budget priorities like education will be crowded out when about 21% of the U.S. population is on Medicaid, the joint state-federal program intended for the poor. Nebraska Governor Dave Heineman calculates that ObamaCare will result in $2.5 billion in new costs for his state that “will be passed on to citizens through direct or indirect taxes and fees,” as he put it in a letter to his state’s junior Senator.

And it continues on. At one point, you may notice that the article says that private medical insurers will be forced to convert into public utilities administered by the federal government. You can read more about that here. (H/T ECM)

Excerpt:

One telling sign of the relevance of this analysis comes from the Congressional Budget Office (“CBO”). In a recent release, it has treated the proposal as if it nationalizes much of the private health insurance industry, most specifically because it may well require that rebates to customers kick in whenever, in its words, “medical loss ratios are less than 90 percent.”[2] In plain English, the Reid Bill assumes that health-care administration, which is always costly, can be done cheaply even in the new legal environment, so cheaply in fact that these health-insurance rebates kick in whenever insurers’ administrative expenses exceed 10 percent of their premium dollar. As the CBO has concluded, “this further expansion of the federal government’s role in the health insurance market would make such insurance an essentially governmental program …”

In effect, the onerous obligations under the Reid Bill would convert private health insurance companies into virtual public utilities. This action is not only a source of real anxiety but also a decision of constitutional proportions, for it systematically strips the regulated health-insurance issuers of their constitutional entitlement to earn a reasonable rate of return on the massive amounts of capital that they have already invested in building out their businesses.

Yesterday, I posted about the CBO estimates for this bill coming in at 2.5 trillion, with 1 trillion dollars of new taxes. Before that, I mentioned that dissenters like Ben Nelson are receiving special grants of taxpayer money for their states in order to change their vote, despite the fact that the health care bill will use the tax dollars of pro-lifers to perform abortions. Please consider calling your members of the House of Representatives to tell them to vote no on this bill!

CBO says that Obamacare will require 1 trillion tax increase

Story at the Weekly Standard. (H/T Weasel Zippers via ECM)

Excerpt:

…In its real first 10 years (2014 to 2023), the CBO says that the bill would cost $1.8 trillion — for insurance coverage expansions alone. Other parts of the bill would cost approximately $700 billion more, bringing the bill’s full 10-year tab to approximately $2.5 trillion — according to the CBO.

In those real first 10 years (2014 to 2023), Americans would have to pay over $1 trillion in additional taxes, over $1 trillion would be siphoned out of Medicare (over $200 billion out of Medicare Advantage alone) and spent on Obamacare, and deficits would rise by over $200 billion.

…the CBO says that health care premiums would rise… Nationwide health care costs would be $234 billion higher than under current law. How’s that for “reform”?

…The CBO estimates that, from 2015-25, private insurers would receive $1.0 trillion in subsidies from the American taxpayer — the insurers’ apparent price for giving up their freedom and being controlled by the government. Congress would mandate that Americans buy the insurers’ product and would redirect massive sums of taxpayer money to make that mandate more feasible.

That’s to freak out my fiscally conservative readers.

My socially conservative readers are already horrified that taxes collected from them will soon be used to pay for abortions. Obama doesn’t want people who are irresponsible about sex to be “punished with a baby”.

Pro-life Democrat will vote for taxpayer-funded abortion in health care bill

Story from the Washington Post. (H/T ECM)

Excerpt:

Democratic leaders worked for days to hammer out a deal with Nelson, and finally reached a tentative agreement late Friday night with him on abortion coverage provisions that had proven the major stumbling block to winning his support. Nelson also secured favors for his home state and to benefit different factions of the health-insurance industry.

Thirty pieces of silver.

The Weekly Standard comments:

Harry Reid has released the manager’s amendment that Ben Nelson has reportedly agreed to vote for, meaning that the Senate bill has 60 votes. The abortion language includes the phony segregation of funding language that was rejected in the House. It would allow individual states to opt out of the abortion-funding program–in other words, the default position is to pay for abortions; states would have to pass legislation to not fund abortions. But states where public abortion-funding is mandated by state court rulings would be required to pay for abortions…

If Nelson is indeed on board, then he just voted for Christian taxpayers to subsidize the murder of innocent babies. But Planned Parenthood will probably be happy and will no doubt offer many more political donations to Democrats in exchange for these new taxpayer subsidies to their booming business.

House health care bill provides health care for illegal immigrants with taxpayer money

Robert Rector does the analysis here at the Heritage Foundation. (H/T National Review via ECM)

Here’s the abstract:

H.R. 3962 would deliberately permit illegal aliens to participate in the government health insurance exchange and in the public option insurance program. It would nominally bar them from receiving health care “affordability credits” and most regular Medicaid benefits, but verification procedures are weak and subject to fraud. Moreover, any limitations on benefits provided to illegal immigrants under the House bill are deceptive. The Presi­dent and the congressional leadership clearly intend that these limits will be only temporary, to be overturned by amnesty or “comprehensive immigration reform” legisla­tion that will be introduced next spring.

And here are the main points:

The health care bill recently passed by the U.S. House of Representatives (H.R. 3962) clearly and directly contradicts the President’s declarations and promises. Under H.R. 3962:

  • Illegal immigrants are clearly permitted to purchase health insurance under the government health insurance exchange created by the bill.
  • Illegal immigrants are permitted to receive cover age under the “public health insurance option” created in the bill.
  • Illegal immigrants are ostensibly barred from receiving taxpayer-funded “affordability credits” to subsidize their health care, but the verification procedures used to determine the legal status of those who receive credits are weak and subject to fraud.
  • The bill expands the Medicaid program. Illegal immigrants are nominally barred from receiving most Medicaid services, but the verification procedures used to determine the legal status of those who receive credits are also weak and sub ject to fraud.
  • All illegal immigrant women who do not have private health insurance and who give birth inside the United States will have the full cost of childbirth paid by the U.S. taxpayers. There will be no effort to have the mother repay any of the cost. Given the fact that nearly 400,000 children are born inside the U.S. each year to illegal immigrant women, these costs could be quite large.
  • The bill will provide tax credits to small businesses to subsidize the purchase of health insurance for illegal immigrant employees. Under H.R. 3962, small businesses will be given tax credits to encourage them to purchase health coverage for employees; because firms are not required to verify the legal status of subsidized employees, both legal and illegal employees will receive taxpayer support.
  • Illegal immigrants will continue to receive so-called emergency medical services under the Medicaid program.

The full research paper, with references, is here.

BONUS: The Senate bill includes a monthly abortion premium for all enrollees in the government-run health plan.

Why Obama’s public option health care plan is a bad deal for young adults

This podcast explains how Obama’s health care reform bill would require young people to buy insurance, while simultaneously preventing medical insurers from reducing their premium amounts in accordance with the lower health risks of young people.

The MP3 file is here.

The guest being interviewed is Aaron Yelowitz.

Bio excerpt:

  • Ph.D., Massachusetts Institute of Technology, Economics, 1994.
  • B.A., High Honors, University of California, Santa Barbara, Business Economics, 1990.
  • Department of Economics, University of Kentucky, Associate Professor, July 1, 2001-present.
  • Associate Editor, Journal of Public Economics, January 2004-present.

And you can read the paper that is being discussed in the podcast.

Excerpt from the abstract:

One of the most interesting questions about the health care overhaul now moving through Congress is how it would affect young adults. That legislation would force most or all Americans to purchase health insurance (an “individual mandate”) and would impose price controls on health insurance (“community rating”) that would limit insurers’ ability to offer lower premiums to low-risk enrollees.

Those provisions would drive premiums down for 55-year-olds but would drive them up for 25-year-olds—who are then implicitly subsidizing older adults. According to the Urban Institute, many young people could see their premiums double, whereas premiums for older adults could be cut in half.

[…]The irony is that Barack Obama won the presidency with 66 percent of the vote among adults aged 18 to 29. That’s a larger share than any presidential candidate has won in decades. Yet his health care overhaul could impose its greatest burdens on young adults.

This reminds me of young unmarried women voting overwhelmingly against marriage and family by electing big government socialists like Obama. This is not to even mention the 10.2% unemployment rate, which is worse for younger workers, as well as the massive national debt that will have to be paid for by young people. Why is that young people are so ignorant of economics that they vote against their own best interests?

Note: The Obama health care plan is also a bad deal for elderly patients on Medicare, since he is cutting 500 billion dollars from Medicare.