Fix Health Care Policy

ObamaCare Will Break the Bank, Not Cut the Deficit

The White House and its congressional allies are trying to suggest that the latest Congressional Budget Office (CBO) cost estimate proves that their health-care plan is fiscally responsible.

But, in fact, the latest CBO projections confirm — again — that the President’s health plan would pile more another unfinanced entitlement program on top of the unaffordable ones already on the federal books.

According to CBO, the new entitlement spending in the plan would cost $216 billion by 2019, and then increase by 8 percent every year thereafter. In other words, the President’s plan would stand up another health entitlement program that will grow much faster than the nation’s economy or revenue base. The changes the Democrats would make to the Senate-passed bill would make the entitlement program even more expensive. (more…)

Tags: Cadillac tax, Congressional Budget Office, deficits, double-counting, Medicare cuts, new entitlement spending, ObamaCare, President's proposal

Forget Doctors’ Support for the Health Care Bill

Earlier this month, President Obama held a press conference at the White House with white coated physicians in his push for a government overhaul of the nation’s health care system. Though the presence of physicians in support of the Democrats’ plans for health care “reform” created the illusion that the medical profession is in strong support of the legislation, it remained just that—an illusion. Recent reports show that the health care legislation does not have the broad support among physicians.

A poll by The Medicus Firm posted in the New England Journal of Medicine‘s CareerCenter shows that, on virtually every count, physicians understand and don’t like the congressional legislation. 62.7 percent of physicians feel that health reform is needed but should be implemented in a more targeted, gradual way; just the opposite of the sweeping overhaul embodied in the massive congressional legislation. Indeed, 46.3 percent of primary care physicians feel that “the passing of health reform will either force them out of medicine or make them want to leave medicine.” (more…)

Tags: doctors, health choices commissioner, House Speaker Nancy Pelosi, ObamaCare, President's proposal

Morning Bell: Is Now Really the Time To Create a New $2.5 Trillion Entitlement?

In theory, the federal government has $2.5 trillion stashed away in a nondescript office building in the sleepy little town of Parkersburg, West Virginia. That is where the Treasury Department keeps stacks of nonnegotiable Treasury bonds payable to the Social Security Administration. But as the Associated Press reported yesterday, for the first time since the 1980s, the federal government will not be adding to that stack. Thanks to an aging population and slow economy, Social Security will pay out $29 billion more this year than it takes in. And the Congressional Budget Office reports that after small surpluses in 2014 and 2015, the program is projected to be in the red from 2016 until forever.

But what about Al Gore’s Social Security “Lock Box?” Can’t we just spend that $2.5 trillion in the Social Security Trust Fund? As Heritage experts David John and Brian Reidl explain, since 1939 federal law has required Social Security to “invest” its extra money in Treasury bonds. Those bonds are really just IOUs from the government to the government. The feds already spent that $2.5 trillion long ago on programs such as education, foreign aid and defense. Add the $2.5 trillion Social Security obligation onto our other obligations and our current national debt stands at $12.5 trillion, or nearly $42,000 for every man, woman, and child in the country. And it will only get worse under President Barack Obama’s Budget. It would: 1) borrow 42 cents for each dollar spent in 2010; 2) leave permanent annual deficits that top $1 trillion as late as 2020; and 3) dump an additional $74,000 per household of debt into the laps of our children and grandchildren. (more…)

Tags: AAA ratings, Centers for Medicare and Medicaid Services, deficit, health care entitlement, President's proposal

Morning Bell: Obamacare at Any Cost

Yesterday the White House circulated a memo by pollster Joel Benenson. It was designed to create momentum for Obamacare by convincing wayward House Democrats that support for the President’s plan has been building since the State of the Union. As with everything else that comes out of the White House on health care these days, the memo is nothing but pure fantasy.

This Tuesday, Gallup released its latest poll showing that by a 48%-45% margin Americans would tell their representative in Congress to vote against President Obama’s health plan. Compare that to the last time Gallup asked the question in January, Americans supported the President’s plan 49%-46%. That’s a net six point loss in support for the President’s plan since the State of the Union. That is momentum. Against Obamacare.

And Gallup isn’t alone. The Associated Press released a poll this week showing that 68% of Americans believe the President and Congressional Democrats shouldn’t pass their health care plan without Republican support. “Nothing has been more disconcerting than to watch Democratic politicians and their media supporters deceive themselves into believing that the public favors the Democrats’ current health-care plan,” Democratic pollsters Pat Caddell and Doug Schoen add in today’s Washington Post, “A solid majority of Americans opposes the massive health-reform plan.” (more…)

Tags: Cornhusker Kickback, ObamaCare, President's proposal, Rep. Bart Stupak, start over

Deja Vu All Over Again

President Barack Obama says he will have his health care bill passed by the House before he leaves for Australia on March 18th. Nobody outside the White House believes that is going to happen. Next week’s blown deadline will join a crowded graveyard of past deadlines including July, August, and September. But blown deadlines are not the only reoccurring storyline from this health care debate. President George Bush economic adviser Keith Hennessey has paired thirteen 2009 health care headlines with thirteen 2010 headlines. See if you can tell which are from this year and which are from last year: (more…)

Tags: end game, final pitch, ObamaCare, President's proposal

Morning Bell: Dead Legislation Walking

Another day, another stream of health care fantasy from the White House. A quick look at two health care events from yesterday, one in Glenside, Pennsylvania, and the other in Tawas City, Michigan, clearly exposes the yawing gap between the Obama administration’s health care rhetoric and cold hard legislative reality. First in Glenside, President Barack Obama turned up the volume on his already tired “final push” for health care reform. In addition to the usual litany of false claims about the legislation in Congress (in fact, you don’t get to keep your doctor, it isn’t paid for, it doesn’t reduce costs) President Obama also repeated his new line from his doctors-in-lab-coats address last week:

“We have now incorporated almost every single serious idea from across the political spectrum about how to contain the rising cost of health care … Our cost-cutting measures mirror most of the proposals in the current Senate bill…”

But, as we pointed out last week, there is one not-so-minor difference between the Senate bill and the President’s new proposal: the Senate bill actually exists. Now, Democrats may be telling their conservative counterparts that they will have reconciliation legislative text in front of the Budget Committee by tomorrow, but don’t hold your breath. The “fixes” that the White House is promising wavering House Democrats they will make all sound easy at first glance: 1) scaling back the tax on high-end health insurance policies; 2) closing the Medicare D loophole; 3) boosting insurance subsidies; 4) increasing Medicaid payments; and 5) fixing the Cornhusker Kickback. But when you take a second look, you see that all of these “fixes” will cost more money. Just look at the Cornhusker Kickback which the President chose to address, not by taking away Nebraska’s special Medicaid payments, but by extending those extra Medicaid payments to every state! Every single item in the President’s proposal either increases spending or reduces new revenues. And he didn’t put forward any way to pay for them. If passing health reform were as easy as giving away free candy, Obamacare would be law already. Finding a way to pay for all these fixes is going to be just as difficult as every earlier effort to pay for this bill. So don’t expect any solutions anytime soon. (more…)

Tags: Cadillac tax, Cornhusker Kickback, ObamaCare, President's proposal, Rep. Bart Stupak, Senate Health Bill, taxpayer-funded abortions

What the House Would Have to Swallow in the Senate Bill

Amidst all the intense speculation about quickly passing the President’s health care agenda through the Budget Reconciliation process before the Easter Recess, ordinary Americans should remember one thing: the House of Representatives must first pass the 2,700-page, $2.5 trillion, Senate health bill. So, the next big step in the national health care debate is floor action in the House of Representatives, where House Speaker Nancy Pelosi must round up at least 216 votes.

Heritage analysts have conducted some extensive research and analysis of the provisions of the giant Senate bill. If the House passes the Senate bill and it goes to the President’s desk for signature, it then would become the law of the land. For all intents and purposes, the legislative debate would then be over.

Regardless of Administration or Senate leadership promises to “fix” the new law (the Senate bill) through the Budget Reconciliation process, there are no guarantees. Any “fixes”– if they did come about — would have to survive another round of Senate floor action. So it is worth recalling what the Senate bill would mean for Americans were it to become law. (more…)

Tags: Cornhusker Kickback, House Speaker Nancy Pelosi, Individual Mandate, Office of Personnel Management, President's proposal, public option, Senate Health Bill

Think Medicaid Expansion is a Good Idea? Think Again.

Most everyone agrees that decreasing the number of the uninsured is an important goal of health care legislation. What is not agreed upon is the best way to achieve that goal. Obama’s health care plan depends on expanding the number of Americans enrolled in Medicaid – the government-run program for the poor and disabled. The Congressional Budget Office (CBO) estimates the Senate bill would account for about 50 percent of the reduction in the uninsured population at a cost of $395 billion over 10 years.

New research by Heritage’s health fellow Brian Blase presents evidence suggesting that Medicaid expansion would be both costly and do little to improve the health of the uninsured. Blase examines the “TennCare” program, a Tennessee public program enacted in 1994 that dramatically increased the expansion of Medicaid to Tennessee’s uninsured population. The TennCare program quickly added over half a million individuals to Medicaid, enrolling one-fourth of the entire state. And costs also skyrocketed. Per-capita Medicaid spending from 1994-2004 increased by 146 percent in Tennessee, which was over double the national average increase of 71 percent.

(more…)

Tags: CBO, Medicaid Expansion, ObamaCare, President's proposal, TennCare

The President’s Health Plan Won’t Cut the Budget Deficit

One of the central arguments President Barack Obama has made on behalf of the health care plan he wants Congress to approve in coming weeks is that it would begin to address the problem of rising costs and thus also begin to bring down future federal budget deficits.

But will it?

The president’s plan has not yet been assessed by the Congressional Budget Office. But CBO has provided a cost estimate for the Senate-passed bill, upon which the president’s proposal is built. That estimate shows the Senate bill would reduce the budget deficit by $132 billion through 2019. CBO also says that the Senate bill would likely reduce projected deficits even more during the second decade of implementation.

But, as Republican Rep. Paul Ryan of Wisconsin noted at last week’s Blair House meeting, there are a number of reasons to be skeptical about this claim.

For starters, the Senate bill omits the president’s proposal to permanently restore a 21 percent reduction in Medicare’s fees for physician services, now in effect as of March 1. The administration estimates that overriding this cut will cost $371 billion through 2020. (more…)

Tags: CBO, doc fix, federal deficit, Medicaid Expansion, Medicare cuts, ObamaCare, President's proposal

The Senate Bill’s Fiscal Madness: Rep. Ryan’s Damning Indictment

As Heritage analysts have noted time and again, spending from congressional liberals’ health care proposals would be in the trillions, growing the federal deficit. The President has proposed a modification of the Senate bill with provisions that would make it even more expensive. At last week’s Health Care Summit, hosted by the White House, Rep. Paul Ryan (R-WI) echoed these same concerns over the true cost of the President’s proposal for health care reform. Thus far, neither the President nor the leaders of Congress- not one- have responded to Ryan’s indictment:

• Budget Gimmicks Galore: “[W]hat has been placed in front of [CBO] is a bill that is full of gimmicks and smoke-and-mirrors…first off, the bill has 10 years of tax increases, about half a trillion dollars, with 10 years of Medicare cuts, about half a trillion dollars, to pay for six years of spending…Now, what’s the true 10-year cost of this bill in 10 years? That’s $2.3 trillion.”
• Double-Counted Savings: “It takes $52 billion in higher Social Security tax revenues and counts them as offsets. But that’s really reserved for Social Security. So either we’re double-counting them or we don’t intend on paying those Social Security benefits…It takes $72 billion and claims money from the CLASS Act. That’s the long-term care insurance program. It takes the money from premiums that are designed for that benefit and instead counts them as offsets.” Later, Rep. Ryan went on to point out, “You can’t say that you’re using this money to either extend Medicare solvency and also offset the cost of this new program. That’s double counting.” (more…)

Tags: CLASS Act, doc fix, Health Care Summit, Medicare cuts, President's proposal, Rep. Paul Ryan, Social Security tax