Fix Health Care Policy

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

Morning Bell: “The American Public Is Not Behind This Bill”

After more than a year of $862 billion deficit stimulus bills, national-debt-doubling federal budgets, and government takeovers of the auto industry, it is difficult to remember that President Barack Obama actually ran as a moderate in many ways. On his way to a 53% – 46% win over Sen. John McCain (R-AZ), then-Sen. Obama promised to “cut taxes for 95% of workers and their families,” expand the Army by 65,000 and the Marines by 27,000, and enact “a net spending cut” for the federal government. Obama promised lower taxes, a strong defense and shrinking the size of government. No wonder independents in nine states that went for President George Bush in 2000 and 2004 switched their vote to Obama in 2008 (CO, FL, IN, IA, NV, NM, NC, OH and VA). But now those independents are beginning to reassess. Public Policy Polling (a liberal polling firm) notes that Obama now has a negative approval rating in every state that he flipped from the Bush column to his in 2008.

And now President Obama has lost one of his biggest and earliest supporters on his signature issue: health care. Yesterday, when pressed on CNBC if he would be in favor of scrapping the Senate health care bill, Warren Buffett responded: “I would be.” Specifically, Buffett believes that the Senate bill will not contain health care costs: “We have a health system that, in terms of cost, is really out of control, and if you take this line and you project what has been happening into the future, we will get less and less competitive. So, we need something else. Unfortunately, we came up with a bill that really doesn’t attack the cost situation that much and we have to have a fundamental change.” Buffett is correct on both fronts: 1) the President’s own Centers for Medicare and Medicaid Services (CMS) has reported that the Senate health care bill would raise national health expenditures $234 billion by 2019; and 2) our current system is completely unable to control exploding health care costs. (more…)

Tags: deficit, Medicaid Expansion, national debt, ObamaCare, price controls, Public Opinion, Senate Health Bill, start over, Warren Buffett

Sen. Joseph Lieberman (I-Conn.)

“I think that a lot of people may think that the public option is free. It’s not. It’s going to cost the taxpayers and people that have insurance now, and if it doesn’t, it’s going to add terribly to our national debt.” — (October 28, 2009, Wall Street Journal)

Tags: national debt, public option, taxpayers

Congress Should Require White House Disclosure of Updated Economic and Budget Forecasts

The White House announced this morning that it would be delaying release of updated financial and economic forecasts until the middle of August. In other words, its usual mid-July update of key forecasts for policy makers will not be published in time for expected House and Senate votes on health care reform. This delay matters enormously to the deliberations of Congress on this central issue. If it knew that the near-term budget picture is worsening and that it cannot count on a recovering economy to produce much needed revenues for reforming health care, it might hesitate in passing legislation that would add tremendously to the national debt.

In the private sector, a management team that kept a company’s worsening financial condition from stockholders and then attempted to borrow funds to expand its business would probably find itself in very serious legal trouble. Hiding material facts about the likely near-term financial condition of a business commonly violates a number of federal regulations, particularly after passage of Sarbanes-Oxley reforms to required financial reporting rules.

If Congress believed it so important to make certain stockholders are protected from intentional distortions and delays of crucial financial legislation, why would it tolerate similar delays when it is deciding on legislation with enormous financial implications for the federal government? Why shouldn’t the White House be held to the exact same standard of financial reporting that Congress requires the private sector to follow?

Congressional leadership in both chambers should immediately pass resolutions calling on the White House to provide up-to-date financial and economic projections before votes are taken on legislation that adds to the annual deficit and to overall national debt. No member should vote on adding to our financial obligations on the mistaken impression that the near-term financial and economic outlook is brighter than the White House actually believes it is.

Tags: budget forecasts, health reform, national debt