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  • Where’s the $2,500 Savings Obama Promised?

    Throughout his campaign, then-candidate Obama repeatedly made two promises about health care reform: that if you like your current health plan, you could keep it—and that it would cost about $2,500 per year less. Obama made this pledge on his campaign web site, in the second presidential debate, and in the third debate, :

    If you have health insurance, then you don’t have to do anything. If you’ve got health insurance through your employer, you can keep your health insurance, keep your choice of doctor, keep your plan. … And we estimate we can cut the average family’s premium by about $2,500 per year.

    One continuing theme in the current health care debate has been over whether you will actually be able to keep your plan if any of the current bills in the House or Senate pass.

    But what about the $2,500 in savings?

    There is nothing in any of the current health care reform proposals that would produce anything like that savings, or even any savings at all. In fact, we’re finding just the opposite.

    A study by John Shiels and Randy Haught of The Lewin Group estimates that the average private insurance premium—the cost of the health insurance you have right now—will actually go up, not down, costing the average working family $460 a year more. That figure accounts only for cost-shifting that they assume will occur because the new “public plan” will pay doctors and hospitals less than they receive now from private insurers, and in some cases less than the cost of providing health care service. In reality, the cost increase might be much higher, because a new “Health Choices Commissioner” will have the authority to mandate coverage of more services than your current plan – in which case you will not be able to keep your plan, and the plan with that extra coverage will necessarily come with a higher premium.

    The closest the House bill (H.R. 3200) comes is to provide some income-based subsidies to purchase health insurance. These would apply only to those who both don’t have employer-sponsored insurance and who have incomes below four times the federal poverty level. They are designed to limit the percentage of income that an eligible family would spend on the “basic” government health insurance package in the new “public plan,” to 1.5-11 percent of income, depending on how close the family is to the federal poverty level. But this is not for the insurance you have now, it’s for government-run insurance “standard” insurance package (similar to Medicare, only with much higher premiums). And the subsidy is not “savings for the average family”; it is just shifting part of the cost of insurance from some families to other families—the ones who pay the taxes necessary to fund the subsidies.

    Posted in Obamacare [slideshow_deploy]

    18 Responses to Where’s the $2,500 Savings Obama Promised?

    1. Hank Richards - DC 2 says:

      Doctors Continue to Exit the U.S. Medical System

      Fast Forward National Healthcare – July, 2012

      The medical profession in the United States warns that there could be a continuing exodus of medical doctors unless the U.S. Health Czar increases fixed fees that doctors receive for treating patients.

      The Department of Health & Welfare in Chicago, an agency created by the Health Recovery Act of 2010, sets the sums that doctors and hospitals are reimbursed for consultations, treatment, and operations by the country’s recent social system of medicine.

      The American Medicine Association says that hundreds of hospitals and general practice clinics also face financial ruin because they too are being forced to rely on government mandated prices for their income.

      Moreover, the same association that backed the initial proposal for the socialized health care says that "they, as the professions bargaining representatives, are being overruled by the Health Czar and the advisory body that regularly reviews the standard type of care offered to anyone in the country.

      Long work hours and uncompetitive pay are deterring people from entering the medical profession. Even the most liberal U.S. immigration laws in the world fail to attract competent medical doctors and only entice doctors from Asia and the Middle East looking to escape their countries for political asylum.

      The shortage of doctors is taking its toll on the people who can least afford it. In fact, thousands of sick people nationwide being transported to hospitals by ambulance have been turned away for treatment. According to a survey by the U.S. Department of National Disaster Recovery, there were 14,387 cases last year in which seriously ill patients in ambulances were rejected by institutions more than three times before finally being accepted. In one case, it took ambulance personnel more than 40 tries to find a place willing to take a patient. In 65 cases, patients had to wait more than 2 1/2 hours at the call scene before leaving for a hospital. The survey found that the medical institutions complained of not having adequate facilities, equipment or medical staff to treat emergency patients.

      The Health Czar promised to resolve a doctor shortage and other related issues after a story appeared causing public outrage about a pregnant woman who miscarried in an ambulance during a frantic three-hour search for a hospital to treat her. Eight hospitals turned down the 34-year-old woman, who was six months pregnant. "The ambulance transporting her crashed into a minivan on its way to the ninth hospital," said a fire department official in Orlando. "Her water broke several minutes before the traffic accident and the baby was born dead. The nearest hospital was just three minutes away," the official said. "Instead, the ambulance had to drive 45 miles.

      Another example of the effects of Health Recovery Act of 2010 is that a man died earlier this week 90 minutes following a bicycle collision with a motorcycle after 14 hospitals refused to treat him. "They refused because they didn’t have an open bed, staff or equipment to help him," the St. Louis I-Net Dispatch reported. Most of those 90 minutes were spent in the ambulance, even though paramedics were at his side within minutes. He had head and back injuries, and “died of shock from loss of blood,” the online report said.

      In New York, if you call an ambulance, they are compelled to call around to neighboring hospitals to see if the doctors in the emergency room have time to see another patient. As it goes, emergency rooms are often pretty busy and a lot of them say no.

      In San Francisco, Marcia Conwell M.D. said “if somebody comes in with a cut less than 6 square inches, the government pays me $14.30 to sew it up. "That’s extremely cheap," she said and is forced to look for other ways to make a dollar. Doctor Conwell has four vending machines in her waiting room and has put up private parking signs on the street in front of her office and charges $4 an hour to park near her clinic and in her private parking lot.

      Even more significantly, the Department of Health and Welfare has played a large role in undermining the health of its Americans. According to several research studies completed since the inception of the Recovery Act, a total of 225,000 Americans per year have died as a result of denied medical treatments.

      Okay – So you think this article is quite bizarre? Maybe — but the excerpts come from Japan On-Line News and its international media describing the condition of the health care system in Japan, said to be one of the best nationalized health care systems in the world — one that continues to experience the following: deceasing services, increasing waiting lists, selective surgeries, pre-approval treatment requirements, rationing provisions, decreased R & D, decreased new pharma drugs introduced from the U.S., continuing increasing costs, individual intrusion by government and under employment with more lost jobs.

      So what should you expect from a U.S. government mandated health plan; no compassion and a POLITICAL SOLUTION rather than a personal, rational and economic one.

      Hank Richards, Managing Editor


      approved for immediate reprint/hr/mp/ceo

      Posted by PRonlineNEWS.com

    2. Annie says:

      I pay $3,000 for my self into Health Insurance I

      So save $500 and its added to Income tax refund?

      Now if my Employer paid my Health Insrance its add in as income and I will pay income tax on it.

      Gosh I think I will do busy without the Goverment

    3. Pingback: » Financial News Update - 07/24/09 NoisyRoom.net: Where liberty dwells, there is my country…

    4. WC Coach - NEW ORLEA says:

      250 million American's are enslaved to their job by the current employer based system – The solution is simple – the government offers a national health insurance bare bone plan. IT's not free the cost is prorated based on one's average weekly wage. A person over 18 earning minimum wage would have free coverage but would have to pay a “utilization” co-pay when they use the system. For the rest the price would be pro-rate between the minimum wage and the average salary of an American worker. For those in extreme poverty the government will set up a service payment option. The difference we pay for it with taxes. The government plan has to complete for providers just like the private market plans.

      Every American (no illegal or visitors allow) gets a health care tax credit equal to the value of the value of the government plan. The more costly the government plans the bigger the tax credit.

      A bare bones plan offered by the government cannot cost more then say 10% of the average American's wage. The tax credit and this cap should prevent the government from offering pork plans.

      Private insurer can offer alternative plans but they must also offer an identical bare bones government plan based on the private insurers negotiated prices with it providers. This should help us keep track on the efficiency of the government offered plan and could actually force the government to compete with private plans. If you use the government plan you give up your tax credit, if you elect a private plan or a self insurance trust plan you get the tax credit.

      No health insurance or qualified self insurance plan no tax credit and you can be denied treatment if you show up at an emergency room. That right no insurance or qualified self insurance plan treatment can be denied. This should motivate most Americans to take responsibility for their health.

      Because reform includes a qualified self insured option every provider must provide full disclosure of what they charge for their services including what they the government and private insures pay for the same service. No price list no payment due.

      Finally – if your employer offers you a group plan and you elect to accept the employer's group plan then your employer gets your tax credit. When you leave you get your credit back and the option to keep and pay for the group plan at the group rate. No more cobra.

      We do not need a 1000 page statute to get health care reform if the pan is more then 25 pages long it would suggest that it is not intended to be reform.

    5. Recruiter, CT says:

      Obama is clearly lying about his overhaul plan. Nancy Pelosi wants a vote now, but what are they voting on? A plan that will bankrupt America, provide inferior care and health rationing for all! I cannot understand how anyone can believe anything that comes out of Obama's mouth. It's been nothing but lies since he took office. He will say and do anything to advance his agenda. Wake up America before there is no America left.

    6. Lloyd Scallan - New says:

      WC Coach plan sounds like it might have some

      creditability. However, is WC so naive to beleive

      that an Obama/Democrat, government will honor or

      adhere to any plan that they cannot fully control.

      Any health plan (or any plan)that THIS government is involved with will completely distroy any "private" insurance company. Their overall objective is a total socalist government. WC, and all others had better understand, Obama and the Democrats are bent on the destruction of our America as we now know it.

    7. Jerry from Chicago says:

      Mr. Obama lies like the rest of us breathe. It's a natural, unconscious act. Maybe the man was born with this condition and just can't help it. Or perhaps he means what he says at the moment he opens his mouth, but he doesn't feel compelled to live up to what he says. He makes promises far too casually and feels no conflict at all when he does something completely different from what he said he was going to do. There is probably a sophisticated medical term for this behavior; I don't know what the term is, so I call it lying.

      The man does not read what he signs into law (e.g. the $800 billion Stimulus bill)within 24 hours of getting his hands on it. The same man who promised to exercise line item veto authority on proposed legislation to remove any 'earmarks' does not veto a single one of 8,500 'earmarks' and pork barrel projects contained in the Stimulus bill. Then he goes on national TV, feigning outrage after AIG executives received bonus payments – payments that he, himself signed into law as part of the Stimulus bill – proof positive that he never read the legislation he signed into law. This guy is supposed to be a "Harvard lawyer".

      He wants national health care to be his presidental legacy. Just like the Stimulous bill, he hasn't read the proposed national health care legislation coming out of the House and he wants to ram it through before Congress adjourns at the end of July, before anyone else can rewad it.

      Yes, there is room for reform in our current health care system and there are efficiencies that need to implemented, but this is no reason to turn the whole system over to the government.

      Remember, health insurance companies do not insure your health. THEY DO NOT PROVIDE OR DENY HEALTH CARE. Doctors and hospitals provide or deny health care and pharmacies provide or deny prescription drugs. What insurance companies do provide or deny is money to pay for treatments or drugs.

      So when people say my insurance company won't let me have a preventative physical exam, or my insurance company won't let me get this or that treatment, it just ain't so. When a doctor or hospital point the finger of guilt at insurance companies saying "they won't let us keep the patient in the hospital any longer, or they won't let us provide the necessary treatment" the doctors and hospitals are not telling the truth.

      Insurance companies do not tell patients they can't stay in the hospital; they do not tell patients that they can't have treatments; they do not tell doctors they can't provide treatments; they do not tell hospitals that they can't keep patients as long as they want. What insurance companies do tell patients, doctors, hospitals and pharmacies is what they will and won't pay for. So it all boils down to one thing – who's gonna pay?

      I am fed up with those in this country who say that Canada's (or France's, or England's or Cuba's) system is better. If they believe that, then these people should go there. I know of no one who leaves this country for treatment in any of these other countries, but I do know that many from other countries with socialized medicine come here for treatment they can't get in their own countries. I read that many Canadians say they would never trade their health care system for the one in the U.S. I suspect that these Canadians have not been diagnosed with cancer and told to come back in six months for treatment.

      There are two things that can be done immediately to slow the rate of medical cost inflation:

      1. Tort Reform is necessary to eliminate huge punitive damage awards to plaintifs and their attorneys, which force medical malpractice insurance rates through the roof. Compensatory damages to plaintifs could include legal costs and be maintained. Punitative damage awards are meant to punish the offender from repeating the same actions or behaviors that resulted in compensatory damages. Punitive damages could still remain a part of the legal system, but awards should not be granted to the plaintifs or their attorneys. Instead any punitive damage awards could be directed to fund Medicare. Of course the trial lawyers will object to this reform, but so what?

      2. State and federal governments have for the past 40 or more years continually passed laws and regulations affecting medical insurance. Each of these pieces of legislation and regulation have expanded the benefits and/or eligibility for benefits available under fully insured and self-insured plans. Each time this is done, more benefits get paid out in claims and consequently, the cost of the insurance goes up. So too does the administration necessary to comply with these laws and regulations. If you doubt this, ask any employer that provides medical insurance to employees, or any doctor's office, or any hospital how much administrative effort is involved in complying with COBRA or HIPAA legislation. This continual interference needs to stop.

    8. Tim AZ says:

      Here's where the savings are. The elderly will be first see the savings. They will be told to go home and take some aspirin and hope to die by morning. Repeat as neccessary until death has occured. The baby boomers will be next in line to partake in their savings. This solves the cost of the medicare program. At the same time eliminating the biggest segment of Americas population with some exceptions of course for govt. employed babyboomers. Remember its your patriotic duty to shut up and die in a timely manner set forth by your beloved government. How's that hope and change working out for you?

    9. Richard says:

      Right now, I am subsidizing those in my company who make less money then I do by paying a higher proportion of share into the company health plan. What's going to happen when everyone has to depend on the Federal government for health care? Will my rates drop and will those less fortunate raise? Will the Federal government use the same "ability to pay" formula? The devil is in the details which we haven't seen yet. The current House bill has over 1,000 pages. I tried to read through it and only got to page 25 before I was throughly confused.

    10. FireInsideTheMan, Mi says:

      Obama wants to push this healthcare insurance plan through Congress quickly to prove that he can fulfill one of his signature issues from his neverending campaign.

      Fortunately, more Americans have begun to realize the arrogance of "hope and change" promised was from yet another politician who spoke one way, and did the complete opposite actions. Congress is too busy wining and dining with lobbyists and political supporters to even bother reading the bills they vote and pass anymore. It pains me to think after the stimulus failure, omnibus spending bill, cap-and-tax, global warming hoax, GM/Chrysler bailouts, and now healthcare, Obama is doing everything in his power to destroy this country from inside the White House and his illegal cabal of "czars" on just about any topic, superceding his Cabinet and even Congress in his quest for ultimate power grab in Washington.

      Americans are on to you Democrats and Republicans. We know who to vote out during the midterm elections next year — clean sweep 2010.

    11. John Roane Sarasota says:

      The model the government using for our health care is a well time tested plan. It has reduced the overall numbers by eliminating the cause for cost increases. If you don't believe that just review the Department of Veterans Affairs healthcare for all veterans. You know those who protected you and freedoms. They paid only thier life for government health care. Now you will the opportunity to do the same.

    12. Helmetfoot Boston, says:

      Save $2,500? With Obamacare the two leading medical associations will be the AMA and the DOFS. That stands for "Doctors on Food Stamps."

      Good old Tom Jefferson said that alittle revolution now and then is not such a bad thing. He really was a wise man.

    13. Jerry from Chicago says:

      John Roane, of Sarasota, FL., makes an excellent point. If you want to get a good idea of the quality and efficiency of a government run health care plan, survey the patients of any Veteran's Administration hospital. If this is the quality of care the government provides to those who honorably served their country, you can imagine what they have in store for those of us who are not veterans.

    14. Lynn B. DeSpain says:

      Where is anything Obama promised, you fools!


    15. Dennis A. Social Cir says:

      I guess some people failed to realize that the "chosen one" has spoken and he cannot tell a lie. I am one of those people that happens to see that obama is talking out of both sides of his face, just so happens he sits on one. This health care is like all the other programs and the spending he has done, all smoke and no substance to any of it. It is not his money so why care about the cost?????

    16. Sandra Oklahoma cit says:

      If Medicare and Social Security are going broke, what makes us think the Government can take care of National Health care? The Congressmen give themselves a raise, but deny SS Recipients a raise. Now why is that? It's my money, I'm 70, and have been paying into the system since I started working at a young age. They act like their giving me something. I've paid for it. they can't take care of it. I believe they'll also bankrupt the country with all they are doing. Their ignorance amazes me. But then again maybe it's their plan to destroy America.

    17. Jerry from Chicago says:

      This administration will not be satisfied until every American is totally dependent on the federal government for their subsistence and even their existence.

      This is slavery. Why isn't President Obama sensitive to that?

    18. ???? ?????? says:

      Hi, i believe that i saw you visited my web site thus i came to return the desire?.I am attempting to to find things to enhance my web site!I suppose its ok to use a few of your ideas!!

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