Research Briefing

ObamaCare Spin Campaign Begins

As Families, Businesses Will Be Hit With Higher Costs

WHITE HOUSE BEGINS PARTISAN SPIN CAMPAIGN ON OBAMACARE

White House Beginning New Campaign To Sell ObamaCare In Effort To Save Dem Seats During “November Midterm Elections.” “The Obama administration's campaign to sell the new health-care law to a skeptical public is beginning to take shape, with a focus on short-term changes that kick in before the November midterm elections. On Saturday, President Obama chose health care as the subject of his weekly radio address, passing over more immediate concerns like the oil spill, the attempted Times Square terrorist attack and the financial overhaul bill now before the Senate. And in a May 10 letter to congressional leaders, Health and Human Services Secretary Kathleen Sebelius outlined specific health-care benefits that are available now or will be soon -- in some cases ahead of schedule. The outreach effort was launched by the White House in recent weeks and aims to improve perceptions of the landmark legislation, while smoothing an implementation process that will take four years.” (Shailagh Murray, “White House Health-Care Campaign Begins,” The Washington Post, 5/11/10)

Obama Touts “Significant Progress” With The Implementation Of ObamaCare. “The Obama administration told Congressional leaders on Monday that it has made ‘significant progress’ implementing the health care overhaul, including a load of consumer friendly provisions that could ease negative perceptions of the plan among a skeptical public. The letter is part of an administration campaign to convey the impression that the debate is over and the health care train is leaving the station.” (Jennifer Haberkorn, “HHS Touts Health Care ‘Progress,’” Politico, 5/10/10)

BUT REALITY IS OBAMACARE’S REGULATIONS WILL RAISE PREMIUMS ACROSS THE BOARD

The Associated Press: “Letting Young Adults Stay On Their Parents' Health Insurance Until They Turn 26 Will Nudge Premiums Nearly 1 Percent Higher For Employer Plans, The Government Said In An Estimate Released Monday. The coverage requirement, effective starting later this year, is one of the most anticipated early benefits of President Barack Obama's new health care law. Many insurers have already started offering extended coverage to families who purchase their coverage directly. And employers say parents have flooded their benefits departments with questions.” (Ricardo Alonso-Zaldivar, “New Coverage For Young Adults Will Raise Premiums,” The Associated Press, 5/10/10)

In 2011, It’ll Cost Parents $3,380 For Each Dependent For Employer Plans And $2,360 For Each Dependent In The Individual Market. “The new benefit will cost $3,380 for each dependent, raising premiums by 0.7 percent in 2011 for employer plans, according to the department's mid-range estimate. Some 1.2 million young adults are expected to sign up, more than half of whom would have been uninsured. … The situation is different for people buying their family coverage directly from an insurer, as many self-employed parents do. Unlike employers, insurers in the individual market do not have to spread the costs broadly. Parents would face an estimated additional premium of $2,360 in 2011.” (Ricardo Alonso-Zaldivar, “New Coverage For Young Adults Will Raise Premiums,” The Associated Press, 5/10/10)

The Associated Press: “Enrollment As Well As Cost Would Increase Modestly After 2011 For Both Employer And Individual Plans. Starting in 2014, the major changes of the new health care law go into effect. New competitive insurance markets would open for business, government tax credits would be available to help pay premiums, and insurers would no longer be allowed to deny coverage to those in poor health. Most Americans would be then required to carry health insurance.” (Ricardo Alonso-Zaldivar, “New Coverage For Young Adults Will Raise Premiums,” The Associated Press, 5/10/10)

AND OBAMACARE’S ADDITIONAL COSTS WILL HURT LOCAL BUSINESSES

Connecticut Economist Says ObamaCare Will Hit State’s 121 Medical Device Companies, 173 Pharmaceutical Companies, And Health Insurance Companies With New Taxes. “The tax will affect 121 medical device manufacturers in Connecticut, according to state Department of Economic & Community Development (DECD) Managing Economist Stan McMillen, who is preparing a report on the impact of health care reform on Connecticut companies. Beginning in 2011, McMillen says, Connecticut’s 173 pharmaceutical firms will be among those nationwide paying an escalating annual fee, depending on their share of the market for business they do with the government. An annual fee also will be imposed on most health-insurance companies beginning in 2014, based on national market share, for at least the next decade.” (Karen Singer, “ObamaCare: This Might Hurt,” Connecticut Business News Journal, 5/10/10)

• Connecticut Economist: “Everyone Is Going To Feel Some Impact But These Three Industries Have Specific Levies Or Fees.” (Karen Singer, “ObamaCare: This Might Hurt,” Connecticut Business News Journal, 5/10/10)
• Eric George, Connecticut Business & Industry Association: “[B]ut 2014 Is Really When We’re Going To See The Nuts And Bolts… On The Short End, We Are Expecting Higher Premiums And Higher Taxes.” (Karen Singer, “ObamaCare: This Might Hurt,” Connecticut Business News Journal, 5/10/10)

CEO Of Lake Region Healthcare In Fergus Falls, MN Expects ObamaCare Will Result In Higher Health Care Costs. “‘We anticipate that our insurance costs will probably increase,’ says Larry Schulz, CEO of Fergus Falls, MN-based Lake Region Healthcare. ‘There are some good insurance reforms for individuals with pre-existing conditions and the elimination of coverage caps, but those cost money to implement. The reforms in the legislation will probably end up pushing up our costs.’”  (Ryan Schuster, “COVER SERIES: Employers Reaction To Legislation Mixed,” Prairie Business Magazine, 5/10/10)

President Of Employco USA In Chicago Says Businesses Fear They Won’t Be Able To Afford ObamaCare’s New Taxes And Regulations. “Rob Wilson, president of the Chicago-based Employco USA employee benefits and human resources outsourcing firm, says his phone has been ringing off the hook ever since the health care reform legislation passed. ‘Businesses are asking, “How are we going to deal with this? We can’t afford this,”’ says Wilson, whose firm works with more than 400 small and midsized businesses in 35 states, including Minnesota. Businesses will be hit by a number of tax increases as a result of the legislation… ‘Even if you don’t have to add health insurance for your 20 employees or you already offer health care, your business taxes will still go up,’ Wilson says.” (Ryan Schuster, “COVER SERIES: Employers Reaction To Legislation Mixed,” Prairie Business Magazine, 5/10/10)