Research Briefing

ObamaCare A “Drag” For Dems,

Burden For States, Businesses, Doctors

AMERICANS CONTINUE TO CALL OBAMACARE “A BAD IDEA”

WSJ/NBC Poll: ObamaCare Is “A Drag On The President’s Party” As 44% Think Obama’s Government Takeover Of Health Care Is “A Bad Idea.” “[D]espite White House predictions that passage of Mr. Obama's health-care bill would boost Democrats in November, the issue still appeared to be more of a drag on the president's party. Some 44% called the health plan a bad idea, compared to 38% who saw it as a good idea.” (Peter Wallsten, Naftali Bendavid & Jean Spencer, “Voters Shifting To GOP, Poll Finds,” The Wall Street Journal, 5/13/10)

THAT’LL HURT NONPROFIT HEALTH CARE PROVIDERS…

Standard & Poor’s (S&P) Says ObamaCare “Poses An Increased Credit Risk For Nonprofit Providers.” “The U.S. healthcare overhaul bill will provide insurance coverage for millions of Americans and possibly lower healthcare cost inflation, but it poses an increased credit risk for nonprofit providers, Standard & Poor's said on Thursday.” (Ciara Linnane, “Healthcare Bill Poses Credit Risk For Nonprofits,” Reuters, 5/13/10)

S&P: “Given That The Objectives Of Delivery System Reform In The Bill Include Lowering Costs And Minimizing Inappropriate Admissions And Services, We Believe The Impact On The Sector's Revenue Could Be Significant...” (Ciara Linnane, “Healthcare Bill Poses Credit Risk For Nonprofits,” Reuters, 5/13/10)

COST INDIANA $3.5 BILLION…

Actuarial Firm Milliman Inc. Estimates Indiana “Will Face An At Least $20 Million Hit In The Coming Year” Because Of Obamacare. “An actuary has told legislators that Indiana's strained finances will face an at least $20 million hit in the coming year from the federal health care overhaul. Estimates released Wednesday put that additional cost at $80 million to $110 million during the next two-year state budget for the expansion of Medicaid even before the federal overhaul takes full effect in 2014.” (Ken Kusmer, “Report Estimates Health Care Overhaul Will Cost Indiana At Least $20 Million In Next Year,” The Associated Press, 5/12/10)

ObamaCare Will “Cost Indiana As Much As $3.5 Billion Over The Next 10 Years,” And The “Largest Amount Of That Cost” Will Come From ObamaCare’s Unfunded Mandate. “The federal health-care legislation could cost Indiana as much as $3.5 billion over the next 10 years, according to an analysis presented Wednesday to the State Budget Committee. That estimate is up from a $2.3 billion projection made in December before Congress passed the landmark legislation. Robert Damler, a state-hired actuary, told lawmakers that the $3.5 billion cost represents the total liability the state could face in additional expenses under the law from 2011 through 2020. The largest amount of that cost would come from adding Hoosiers to the state's Medicaid rolls.” (Bill Ruthhart, “Health Reform Could Cost Indiana $3.5B,” The Indianapolis Star, 5/13/10)

AND DEPEND ON NEW TAXES, LIKE A “NOT… VERY CLEVER OR SMART” TANNING TAX

Chief Economist At Centrist Concord Coalition Says ObamaCare’s Tanning Tax Is “Not A Very Clever Or Smart Policy.” “‘It’s not a very clever or smart policy but it’s the kind of policy that makes it over the political hurdle…’ said Chief Economist Diane Lim Rogers of the Concord Coalition, a nonprofit think tank that promotes fiscal responsibility and reducing federal budget deficits.” (Christina Lee, “New Tanning Tax Firing Up Industry, Dematologists Say It Will Promote Safer Practices,” The Daily Caller, 5/12/10)

Indoor Tanning Association Says Tanning Salons “Have Been Given No Specifics On How The Tax Will Work.” “A new 10 percent tax on indoor tanning beds that goes into effect July 1 already has the tanning industry irate. But some dermatologists say it may help promote safer tanning practices. The Indoor Tanning Association expressed frustration that tanning businesses have been given no specifics on how the tax will work. ‘What the folks at the IRS don’t understand is that payment doesn’t always come when the service is performed and a lot of times these services are purchased in packages,’ said ITA spokesman John Overstreet.  The packages often include ultraviolet–bed services along with sunless spray-on treatments.” (Christina Lee, “New Tanning Tax Firing Up Industry, Dematologists Say It Will Promote Safer Practices,” The Daily Caller, 5/12/10)

MEANWHILE, THE FIGHT AGAINST OBAMA’S MANDATE TO PURCHASE GOVERNMENT-APPROVED INSURANCE GROWS ON STATE AND NATIONAL LEVELS

National Federation Of Independent Business (NFIB) Will Join The Multi-State Lawsuit To Challenge ObamaCare’s Individual Mandate. “The nation's most influential small business lobby… The National Federation of Independent Business will announce Friday it is joining a federal lawsuit filed in Florida by 20 state attorneys general and governors, NFIB President Dan Danner said in an interview. All but one of the state officials are Republicans, and the case coincides with an election year.” (Ricardo Alonso-Zaldivar, “Small Business Lobby Joins Challenge To Health Law,” The Associated Press, 5/14/10)

• NFIB Decided To Join After “A Groundswell Of Opposition” From Small Business Owners After ObamaCare Was Signed. “A groundswell of opposition to the law from small business owners prompted NFIB's decision to join the court challenge, said Karen Harned, a senior lawyer for the group. ‘The second the law was signed, NFIB was hearing from its members: “What are you all going to do about this?”’ said Harned. ‘So we hunkered down. We looked around. This state attorneys general lawsuit made the most sense for us. It's the only one that has a national presence.’” (Ricardo Alonso-Zaldivar, “Small Business Lobby Joins Challenge To Health Law,” The Associated Press, 5/14/10)
• “NFIB’s Involvement Ensures” Constitutional Challenges To ObamaCare “Will Be Extensively Aired” During The Midterm Election Season. “NFIB's involvement ensures that constitutional arguments for overturning the health care law — even if they fail to sway federal judges — will be extensively aired in the fall campaigns. With 350,000 members, the group boasts a far-reaching network of local activists.” (Ricardo Alonso-Zaldivar, “Small Business Lobby Joins Challenge To Health Law,” The Associated Press, 5/14/10)

“Louisiana House Is On Record As Being Opposed” To ObamaCare After Passing A Bill That Says No One In Louisiana Will Be Forced To Participate, Fined If They Don’t. “The Louisiana House is on record as being opposed to the federal health care overhaul. With a 60-15 vote Thursday, the House approved a bill that declares no one in Louisiana can be mandated to pay a penalty if they don't have insurance or be required to participate in a health system. The measure, backed by Gov. Bobby Jindal, heads next to the Senate.” (“La. House Backs Bill To Opt Out Of Health Overhaul,” The Associated Press, 5/13/10)

AS THE DOC FIX IS “A STICKING POINT” THAT COULD LEAD TO MEDICARE PATIENTS LOSING THEIR DOCTORS

Dems “Failed” To Fix The Medicare Payment System In Their Government-Run Health Care Bill. “Lawmakers failed to permanently overhaul the Medicare payment system in the health reform bill and have already had to pass three short-term ‘patches’ this year to prevent the cuts.” (Julian Pecquet, “Deficit Worries Make It Tough For Democrats To Move The ‘Doc Fix,’” The Hill, 5/13/10)

Now “House Democrats Are Struggling” With The Doc Fix And Will Likely Create Another Short-Term Fix When “The Current Patch Expires June 1.” “House Democrats are struggling with how to prevent cuts to physician payments under Medicare. … [L]obbyists say they’ve heard lawmakers might not fix the problem for more than seven months in the tax extenders package currently under discussion. Lawmakers failed to permanently overhaul the Medicare payment system in the health reform bill and have already had to pass three short-term ‘patches’ this year to prevent the cuts. The current patch expires June 1 and if lawmakers do nothing, physicians will see a 21.3 percent drop in Medicare payments.” (Julian Pecquet, “Deficit Worries Make It Tough For Democrats To Move The ‘Doc Fix,’” The Hill, 5/13/10)

• But Funding “A Sticking Point” Because Dems Won’t Trim Their Binge Spending To Pay For It. “Funding for Medicare physician payments has emerged as a sticking point in House-Senate negotiations on a massive package of tax break extensions and aid to states and the unemployed that Democrats want to bring to the House floor next week. Under the statutory pay/go law enacted in February, there is room for $88.5 billion without offsets for reimbursements to physicians that take Medicare patients to prevent steep cuts scheduled for June 1. That would take care of the problem for up to five years. Blue Dogs, who pushed for the new budget rules, now say that exemption from pay/go may be too generous. ‘I don't like a big number being unpaid-for,’ said Rep. John Tanner, D-Tenn.” (Peter Cohn, “Medicare Physician Fix Latest Sticking Point For ‘Extenders,’” National Journal’s Congress Daily, 5/13/10)

Physician Survey Finds 24% Of Respondents Would “Prob[ably] Not” Or “Def[initely] Not” Accept Medicare For Current Patients “If This 21% Cut In The Payment Rate Occurs On June 1st.” (Benenson Strategy Group, “American Osteopathic Association Member Poll,” Presentation, 5/11/10)

• And 37% Of Respondents Would “Prob[ably] Not” Or “Def[initely] Not” Accept Medicare For New Patients “If This 21% Cut In The Payment Rate Occurs On June 1st.” (Benenson Strategy Group, “American Osteopathic Association Member Poll,” Presentation, 5/11/10)