Research Briefing

Americans Still Oppose ObamaCare, While Businesses Still Expect Higher Health Care Costs

AMERICANS CONTINUE TO OPPOSE OBAMACARE

Kaiser: 44% Have “Unfavorable Views” Of ObamaCare While 41% Have “Favorable Views.” “Overall, the public continues to be divided in their views of the new health reform law, with the May tracking poll finding 41 percent holding favorable views, 44 percent unfavorable views and 14 percent undecided or unsure.” (“Kaiser Health Tracking Poll,” Kaiser Family Foundation, 5/10)

Kaiser: Strong Support For ObamaCare Fell Nine Points Since Last Month To A Mere 14 Percent. “In terms of the trend in opinion, over the course of the past month there has been a falloff in strong supporters, with 23 percent in April saying they held ‘very favorable’ views of the new law, compared to 14 percent now.” (“Kaiser Health Tracking Poll,” Kaiser Family Foundation, 5/10)

• Kaiser: “Most Of This Falloff Came From Democrats Themselves, whose rally round the flag feelings may have waned as passage fades into the rearview mirror: In April, 43 percent of self‐identified Democrats said they had ‘very favorable’ views of the reform law, compared to 30 percent now.” (“Kaiser Health Tracking Poll,” Kaiser Family Foundation, 5/10)

Kaiser: People With “Unfavorable Views” Of ObamaCare Cited Cost, Government Involvement As Primary Reasons For Concern. “Those with unfavorable views of the law had a much more disparate group of reasons for their negative perceptions. Topping the list were concerns about the cost of the reforms and opposition to the government’s perceived role in the changes.” (“Kaiser Health Tracking Poll,” Kaiser Family Foundation, 5/10)

Critical Insights: 47% Of Mainers Oppose ObamaCare And A Majority Think Health Care Costs Will Increase. “In a survey of 600 Mainers, 53 percent said they think their health care costs will go up and 32 percent think they’ll stay about the same. Only six percent think they’ll go down. The poll also found that 38 percent of those surveyed support the federal health care law, while 47 percent oppose it. The poll was conducted by Critical Insights in Portland and released Thursday.” (“Poll Indicates Mainers Oppose New Health Care Law,” The Associated Press, 5/20/10)

EMPLOYERS EXPECT HEALTH CARE COSTS TO INCREASE

“Health Care Legislation That Was Signed Into Law On March 23 Leaves Businesses And Health Providers With More Questions Than Answers. But One Thing Seems Clear: Health Care Costs Will Rise.” (Richard A. D’Errico, “Panel: Health Care Law Will Increase Costs,” The Business Review, 5/20/10)

New Survey By Mercer, A Consulting Firm, Finds Most Employers Expect ObamaCare Will Raise Health Care Costs Next Year. “More than 40 percent of employers surveyed by the consulting firm Mercer expect health care reform to raise health care costs by a modest 2 percent or less next year. A quarter of those surveyed believe reform will add at least 3 percent to their projected costs for 2011, while 3 percent of the employers expect no increase.” (“Survey: Employers See Health Care Hikes In 2011,” The Associated Press, 3/20/10)

 “Average Health Benefit Costs Per Employee Have Risen About 6 Percent Each Year For The Past Five Years, Mercer Said. Any Increases From Reform Will Be In Addition To That.” (“Survey: Employers See Health Care Hikes In 2011,” The Associated Press, 3/20/10)

• Additional Costs Could Come From ObamaCare’s Ban On Lifetime Caps For Benefits And Coverage For Young Adults. “Benefit plans may see additional costs next year due to provisions in the reform law that ban lifetime maximums for benefits and extend coverage of young adult dependents on parental plans to age 26. … About 71 percent of large employers have a lifetime maximum for benefits while 29 percent don’t, said Beth Umland, Mercer’s research director for health and benefits.” (“Survey: Employers See Health Care Hikes In 2011,” The Associated Press, 3/20/10)

CEO Of Troy, NY-Based Northeast Health Says ObamaCare “Was Not Cost Reduction.” “James Reed, president and CEO of Troy-based Northeast Health, said if he spoke about what he actually knows about the legislation, his remarks before the crowd of 170 would be short compared to what he’s worried about. Reed, whose nonprofit organization directs 50 facilities in 22 New York counties, said he doesn’t understand how adding 30 million uninsured Americans to the country’s already broken health care system will in the end bring costs down for most citizens. ‘I just don’t get it,’ he said. ‘At the end of the day, was there ever health care reform? This was not cost reduction. This was cost shifting. What government did—it did not reduce costs. It reduced what government will pay.’” (Richard A. D’Errico, “Panel: Health Care Law Will Increase Costs,” The Business Review, 5/20/10)

WEST VIRGINIA WON’T EXTEND EARLY COVERAGE TO YOUNG ADULT DEPENDENTS OF STATE WORKERS BECAUSE OF COST

ObamaCare Will Cost West Virginia’s Public Employees Insurance Agency (PEIA) “$30.1 Million In The 2011-12 Budget Year, And Will Continue To Increase Each Year, To An Estimated $38 Million In 2014-15.” “According to a report presented to the PEIA Finance Board on Thursday, additional benefits mandated under the federal health-care act will increase PEIA’s expenses by $30.1 million in the 2011-12 budget year, and will continue to increase each year, to an estimated $38 million in 2014-15.” (Phil Kabler, “Federal Health-Care Law To Cost PEIA $30 Million A Year,” The Charleston Gazette, 5/20/10)

Democrat Official Ted Cheatham: “The New Health Reform Is Going To Impose $30 Million [Of Costs] On This Plan That You Haven’t Budgeted For....” (Phil Kabler, “Federal Health-Care Law To Cost PEIA $30 Million A Year,” The Charleston Gazette, 5/20/10)

PEIA Won’t Offer Health Coverage To The Young Adult Children Of The People It Insures “Until It Is Mandated To Do So” As The Cost Will Be “$7 Million In New Expenses In 2011-12, And Increase To $8.6 Million In 2014-15.” “Another major expense will be to extend coverage for children of insurees to age 26, even if the children are no longer dependents. That is projected to cost PEIA $7 million in new expenses in 2011-12, and increase to $8.6 million in 2014-15. Because of that expense, Cheatham told the board he had decided that PEIA would not offer that extended coverage to children of insurees until it is mandated by law to do so, on July 1, 2011. ‘We will not implement that change early, as some plans have done,’ he said.” (Phil Kabler, “Federal Health-Care Law To Cost PEIA $30 Million A Year,” The Charleston Gazette, 5/20/10)