The Real Impact to Americans if Present Health Care Legislation Passes

By:Richard H. Frank

The President and Congress continue to drive their talking points that the proposed “Affordable Health Care” legislation will reduce costs to every American while providing coverage to 30 million previously uninsured people.

They hold fast to the CBO projection, based on flawed assumptions, that the proposal is paid for and eventually will reduce the deficit.

When confronted with facts such as 10 years of tax increases and Medicare cuts to finance 6 years of costs, they are stymied for an answer or switch the topic to avoid the facts.  The current Proposal crafted by President Obama and the Democrats is a BLIVIT or “Ten pounds of crap in a five pound bag.”  All the political smoke and mirrors and double speak will not change the reality of the disastrous impact this legislation will have on this country’s health care system. Physics has a law that states” Every action creates an equal reaction”. In the case of government action the reaction seems more likely to be unequal and detrimental to the majority of the people and our Republic. Consider the following:

Action:  Health care legislation passes as “Obama” Proposal

Consequences:   Extends coverages to uninsured, creates subsidies for low-income, mandates all Americans to buy insurance, and massive increase in Government agencies

Action:  Employer penalty of $3000 for each employee if no employer insurance-places tax on Cadillac plans

Consequences:  Diminished coverage by individual companies that will pay the penalty in lieu of more expensive premiums, eventual demise of private insurance providers, and will drive individuals to a Medicare-type option

Action:  $500 billion cuts in Medicare and placing uninsured in Medicare

Consequences:  Doctors and hospitals will refuse to treat Medicare patients, rationing of care, and Medicare payroll taxes will be increased to cover additional coverage or those costs will be added to our growing deficit.

Action:  New taxes on medical implements and devices

Consequences:  Tax will be passed on to the consumer in the form of increased costs.

You may wonder why many businesses would support this legislation.  The answer is simple.  It reduces their costs dramatically and transfers premium costs from the private sector of our economy to the public sector.  It is highly unlikely that any of those cost savings will be passed on to you, the consumer, in the form of reduced prices for the goods and services we purchase.  Moreover, our Government has never demonstrated that they are more efficient in managing costs for any program than is the private sector.

One small example of unintended consequences to illustrate my point is this:  When Congress passed the prescription drug legislation many retirees  received notices from their past employers, from whom they were purchasing supplemental prescription insurance, that the coverage was being cancelled for them and their spouses and dependents.  The reason given was that comparable coverage was now available under Medicare “Part D.” Seniors had the option to buy coverage under Part “D” or have no supplemental insurance at all.  Since the inception of the program, premiums on Part “D” paid by seniors have increased 14% of the 1st year and as much as 76% the second year (this is a Government program).

Since Congress made no attempt to pay for this legislation, these costs are being applied to our growing deficit.  Future generations will be taxed beyond our wildest imagination in order to pay for costs incurred today.

No one can accurately forecast the costs associated with the proposed “Affordable Health Care” legislation before Congress.  Today the CBO released a report that says the administration  has once again been wrong in their forecast for the deficit over the next decade. Why would we believe anything they say regarding costs to fund health care? Our Representatives must vote against passage and start over with fiscally responsible incremental reform that can be measured before destroying our current system.

2 Responses

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