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  • House Bill Raises, Not Lowers, Health Care Costs

    The Chief Actuary in the Centers for Medicare and Medicaid Services in the Obama Health and Human Services department issued a memorandum late yesterday looking at the potential impact of the House health reform legislation (H.R. 3200). As the Associated Press and other media outlets have been reporting, the study shows that- among other things- the legislation would, as President Obama promised, bend the health care cost curve … but  in the wrong direction.


    The findings suggest that if the House legislation were enacted, President Obama would be breaking his long standing promise that reform would reduce rapidly growing health care costs. Although the President has continually argued that Americans spend too much on health care, and that under reform they would spend less, the new HHS report finds the opposite is likely to occur under the House legislation. Here are some key findings from the HHS memorandum:

    • The legislation would increase total national health expenditures in the U.S. by about 2.1 percent during the period between 2010 and 2019.
    • As a share of gross domestic product (GDP) health care spending would grow to 21.3 percent compared to 20.8 estimated under current law.
    • The bill carries a price tag of about $1 trillion dollars (from 2013 to 2019), which does not even represent a full 10-year cost estimate.
    • The measure is likely to deliver only small savings despite the many provisions intended to reduce the growth in health care costs.
    • While the proposal might cover 34 million uninsured it would still leave 23 million people without coverage, including as many as 18 million Americans who would remain uninsured and face a new tax penalty.
    • More than 50 percent of the new coverage gains under the bill (18 million out of 34 million) would come from expansions in the Medicaid program.
    • 40 percent of those obtaining coverage through a newly established health insurance exchange could be enrolled in the public option.
    • Cuts to the popular Medicare Advantage program for seniors could have the effect of reducing enrollment by 64 percent, with projected enrollment in 2014 falling from 13.2 million to only 4.7 million seniors.
    • And, all told, the plan puts new strains on health care providers which could lead to price increases, increased cost-shifting onto the privately insured, and/or compromised access to high quality care.

    In sum, the findings in the report aren’t pretty. Let’s just hope the White House and Democrats in Congress got the memo.

    Posted in Obamacare [slideshow_deploy]

    15 Responses to House Bill Raises, Not Lowers, Health Care Costs

    1. Bonnie Goode Venice says:

      God bless our America and those who are standing up for the truth. Thank you for your excellent foundation as my husband and I believe you are making a giant difference and that people are waking up to the job we have in refounding our country based on our Constitution. God bless you all.

    2. Freedom of Speech TX says:

      And this President and this Congress wanted to pass legislation before the August recess?

      NOW – we know why. No one did any meaningful due diligence. This is not surprising since most of our leaders do not read before they sign. They do not have to. Legislation is written vague enough there is always plenty of opportunity to fill in the blanks later.

      And, if it cost too much – the "government" never runs out of money…

    3. nancy, california says:

      To this comment; have you ever read the Constitution? Just asking……

    4. Freedom of Speech, T says:

      Dear Nancy, California,

      We would like to opine. What exactly is your point?

    5. Thomas, USA says:

      A year ago with W in charge the state run media would have blowed him a new one if this came to light. Why isn't it on every front page and headline? Seems there are a few biased news organizations out there……duh.

    6. Ginger Saunders Stua says:

      I would like to know what the purpose of this bill is. Not everyone is going to be insured. It costs more, we have less benefits. We need to ditch this bill and work on fixing our current system one problem at a time. Give our business's some help. problem one help put people back to work. This government we have now is not going to help us. every day it gets worse. We have Obama for three more years we can not do any thing about that, but we can take the House and Senate back. Pick your candidate's wisely be they Republican, Democrat, Independent, Libertarian, or conservative.

    7. Bill - Chicago says:

      Joe Wilson was right…HE LIES!!!

    8. Pauline, Kingman, AZ says:

      Right on Ginger! I could not have said it better. I am sick of self-serving "public servants" who do nothing but line their own pockets, support a sick party no matter what it proposes, and backs a president who doesn't have a clue! Throw all the rascals out!!!!!!!!!

    9. John Clancy says:

      In all the talk about healthcare I think that Washington and the media have lost a central reality: Our healthcare system is basically sound; in fact, it's the best in the world. It needs portability, tort reform, a way to help those who want insurance but can't afford it, and a few other ajustments.

      That Obama is pushing for a take over, NOT reform should be painfully obvious to all by now.

    10. Freedom of Speech, T says:

      Dear Ginger Florida.

      Many people would also like to know what the REAL purpose is.

      I think with the frontal assault on all possible policy areas being conducted it is very clear.

      He is doing what HE SAID he was going to do – reinvent American. That statement ALONE should have been enough to get a reasonable person's attention. We are dealing with unreasonable people. Some would call them socialists/marxists?

      Why is that? And, if it is NOT true, what other explanation is there? Hopefully reasonable patriotic politicians from BOTH parties start seeing what this madness for what it is.

    11. Pingback: House Bill Raises, Not Lowers, Heath Care Costs « American Freedom and Enterprise Foundation

    12. PatriciaMarie says:

      This Heathcare Bill has nothing to do with health….it's all about control.

    13. Lynn B. DeSpain says:

      So? Was anyone expecting anything else? Our house and property value went down this year, and yet our taxes on them went up. That is what Government does best. Oregon even proposed taxing business loses and passed it! It was brought up on Refferndum and the People vote on it now, but really.

    14. philip says:

      Just say no to goverment health care they don't have the fogiest idea what is goning on in the world let alone what they are trying to do to the health system they are all the flim flam men and women oh not not more of Nacy Polosi and Harry Reid lets clean house and through them out they have lived off goverment and our tax dollers long enough

    15. Bobbie Jay says:

      Same here Lynn. we just heard of a man making 14,000 a year, living in a 700,000 home! The government enabled this irresponsibility then obligates us accountable to the expense of the consequence government initiated! We get alot of bias mortgage sales. We're told immigrants came here with nothing yet, the 10 plus years they've been here, are in the newest 6 bedroom houses available! Alot of discrimination and bias going around. We're the ones paying the way. Don't get me wrong. I love immigrants that come here to respect the freedoms and liberties we all become accustomed to. To respect and take on the expectation of their independence. But it seems, in this city, they're living off us while their income is disposable. It makes things difficult when expectations are based on race, culture and or creed, not equal to all.

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