Research Briefing

ObamaCare Is Increasing Costs And Cutting Coverage For Seniors And Families

President Obama: “I’ve Got To Win In 2012” So I Can Implement ObamaCare. Obama: “We still have a health care system that has to get more efficient and that has to improve its quality.  And so we're going to have to implement the Affordable Care Act in 2014, and that means I've got to win in 2012.” (President Barack Obama, Remarks At A Campaign Event, New York, NY, 11/30/11)

OBAMACARE IS ALREADY CAUSING SENIORS TO LOSE COVERAGE

President Obama Promised That “If You Like Your Health Care Plan, You Will Be Able To Keep Your Health Care Plan. Period. No One Will Take It Away. No Matter What.” (President Barack Obama, Address To The American Medical Association, Chicago, IL, 6/15/09)

Thousands Of Seniors In New Hampshire Were Notified That Their Medicare Advantage Plans Are Being Discontinued. “Many local Medicare Advantage users are being left in the lurch by their health plan providers. About 7,600 seniors in Rockingham, Carroll, and Hillsborough Counties received notice earlier this month that their Medicare Advantage coverage is being discontinued. New Hampshire has one of the highest percentages of Medicare Advantage enrollees in New England.” (Julie Hanson, “Medicare Questions Just Keep Coming,” Union Leader, 11/30/11)

And The Seniors Losing Their Medicare Advantage Coverage In New Hampshire Is Only The Tip Of The Iceberg. Medicare Chief Actuary Richard “[F]oster's office is projecting that more than 7 million Medicare recipients in private Medicare Advantage plans will eventually have to find other coverage. That would cut enrollment in the popular plans by about half.” (“Medicare Official Doubts Health Care Law Savings,” The Associated Press, 1/26/11)

Union Leader: New Hampshire Medicare Advantage Beneficiaries Were Lied To. “Remember when President Obama said that if his health care ‘reform’ law passed, you’d still get to keep your doctor? Medicare Advantage participants in the Granite State are finding out what a lie that was.” (Editorial, “A Small Taste: New Hampshire Samples ObamaCare,” Union Leader, 12/1/11)

• Union Leader: Americans Will Lose Coverage Along With Their Health Providers As Well. “Its regulations will so skew the private insurance market that millions will lose the coverage they have and be forced into plans preferred by bureaucrats in Washington. They will lose access to their doctors, too. It would make a lot more sense to reform the health insurance market by working to give people more control over their own care, not less.” (Editorial, “A Small Taste: New Hampshire Samples ObamaCare,” Union Leader, 12/1/11)

FactCheck.org: The White House Ad Promising Medicare “Benefits Will Remain The Same” Is False. “Currently, about 1 in every 4 Medicare beneficiary is enrolled in a Medicare Advantage plan. For many of them, the words in this ad ring hollow, and the promise that ‘benefits will remain the same’ is just as fictional as the town of Mayberry was when Griffith played the local sheriff.” (Brooks Jackson, “Mayberry Misleads On Medicare,” FactCheck.org, 7/31/10)

AND HEALTH CARE COSTS CONTINUE TO BURDEN FAMILIES

In Wednesday’s Kaiser Poll, 50% Of Respondents Say That ObamaCare Has Negatively Affected Them, Citing “The Cost Of My Own Health Care Has Increased / Can’t Afford Cost Of Insurance / Higher Costs.” (Kaiser Family Foundation, 1,209 A, MoE 3%, 11/10-15/11)

“The Cost Of Health Insurance Skyrocketed In 2011 After Several Years Of Relatively Small Increases.” (Jane M. Von Bergen, “Health Insurance Costs Skyrocketing,” The Philadelphia Inquirer, 9/27/11)

Spending On Health Coverage For Workers “Spiked” By 9 Percent In 2011. “Employers' spending on health coverage for workers spiked abruptly this year, with the average cost of a family plan rising by 9 percent, triple the growth seen in 2010.” (Julie Appleby, “Cost Of Employer Insurance Plans Surge In 2011,” Kaiser Health News, 9/27/11)

Workers Paid An Average Of $132 More For Family Coverage This Year. “Although premiums rose, employers kept the percentage of the premium workers pay about the same: An average of 18 percent for single coverage and 28 percent for family plans. Still, with rising costs, workers paid more, up an average of $132 a year for family coverage. Since 1999, the dollar amount workers contribute toward premiums nationally has grown 168 percent, while their wages have grown by 50 percent, according to the survey.” (Julie Appleby, “Cost Of Employer Insurance Plans Surge In 2011,” Kaiser Health News, 9/27/11)  

• Cost Of Single Employee Coverage Grew 8 Percent According To The Survey. “Family plan premiums hit $15,073 on average, while coverage for single employees grew 8 percent to $5,429, according to a survey released Tuesday by the Kaiser Family Foundation and the Health Research & Educational Trust. (KHN is an editorially-independent program of the foundation.)”(Julie Appleby, “Cost Of Employer Insurance Plans Surge In 2011,” Kaiser Health News, 9/27/11)

OBAMACARE IS ALREADY PROVING COSTLY TO STATES

Pre-Existing Condition Insurance Plan Has Insured Fewer People And Proven Much Costlier Than Originally Estimated. “A temporary program created by the 2010 health care reform law has provided health insurance to fewer people than expected. Yet at the same time, in one big state, the program has turned out to be much costlier than expected.” (Arthur Delaney, “Health Care Reform Program Much Costlier Than Expected In California,” Huffington Post, 11/29/11)

For California, The Program Has Cost “Three Times As Much Per Enrollee Than Previously Estimated.” “But California's PCIP has turned out to cost three times as much per enrollee than previously estimated. The state's Managed Risk Medical Insurance Board, which administers the plan, initially figured it would have to pay $1,000 a month in claims per enrollee. New data show claims cost $3,100 per member each month, meaning that the government will have to cap California's enrollment at 6,800 unless more funds are made available. As of October, 5,290 people are signed up in the state.” (Arthur Delaney, “Health Care Reform Program Much Costlier Than Expected In California,” Huffington Post, 11/29/11)

• “What Happens With The Pre-Existing Condition Insurance Plan Is Important Because It Could Foreshadow Problems With Major Changes Under The Law That Are Still A Few Years Away.” (Ricardo Alonso-Zaldivar, “Growing Pains For A Centerpiece Of Health Overhaul,” The Associated Press, 10/3/10)

SO IT’S NO SURPRISE THAT OBAMACARE IS STILL UNPOPULAR

November ’11 Kaiser Poll Finds That More Americans Dislike ObamaCare Than Those Who Like The Law. “The latest Kaiser Family Foundation monthly poll shows that the law’s popularity rose a bit after hitting a new low last month. Still, more people don’t like the law than do: 44 percent to 37 percent. That was a small improvement from October, when 51 percent panned the law, but the law’s popularity remains below where it has been.” (Jordan Rau, “Support Of Health Law Rebounds A Bit,” Kaiser Health News, 11/30/11)

• “The Public Has Also Been Consistent About Something Else In The Health Care Law: Opposition To The Individual Mandate. Sixty-Three Percent Of Americans Viewed That Provisions Unfavorably In November, Including 43 Percent Who Had A ‘Very’ Negative Impression Of That Provision.” (Dena Bunis, “Kaiser Poll: Public Still Unhappy With Health Care Law But Unfavorable-Favorable Gap Narrows,” Congressional Quarterly, 11/30/11)

36% Of Seniors That Are 65 Years Old And Older Responded That They Are Worse Off Under ObamaCare. (Kaiser Family Foundation, 1,209 A, MoE 3%, 11/10-15/11)

In The Most Recent Kaiser Poll, 31% Of Respondents Surveyed Said That They Are “Worse Off” From The Law While 36% Were In Agreement That The Country Is Not Faring Any Better From ObamaCare. (Kaiser Family Foundation, 1,209 A, MoE 3%, 11/10-15/11)

AND THAT OBAMA’S LOSING GROUND IN SWING STATES

 “Driven Down By Economic Forces, President Barack Obama Is Running Poorly In New Hampshire, A State He Carried In 2008 And One That Has Been A Swing State In Recent Presidential Elections.” (Mike Dorning, “Obama Loses To Romney In New Hampshire Poll,” Bloomberg, 11/16/11)

University Of New Hampshire Danta Scala:  New Hampshire Had A “Democratic Tilt” In 2008. “Republican candidates won all the open congressional seats in the 2010 election and took control of the state Legislature. Obama’s approval ratings have dropped from 66 percent in February 2009 to 41 percent in October 2011, according to polling by the University of New Hampshire Survey Center. ‘In 2008, New Hampshire was considered a state with a Democratic tilt to it,’ said Dante Scala, associate professor of political science at the UNH.” (Shira Schoenberg, “While N.H. Eyes On GOP Candidates, Obama And Democrats Work Quietly,” The Boston Globe, 11/10/11)

• Scala:  Today Obama Is Having An “Exceptionally Difficult Time In New Hampshire.” ‘Now, all indications are that President Obama’s having an exceptionally difficult time in New Hampshire for a state that voted for him three years ago.’ A big part of that is dissatisfaction with the economy – which is also hurting Obama nationally. (Shira Schoenberg, “While N.H. Eyes On GOP Candidates, Obama And Democrats Work Quietly,” The Boston Globe, 11/10/11)

EVEN DEMOCRATS ARE SIGNING ON TO REPEAL EFFORTS

Ranking Democratic Congressman Barney Frank Signed On As Cosponsor Of “The Medicare Decisions Accountability Act Of 2011,” A Bill That Would Repeal Independent Payment Advisory Board. (H.R. 452, Introduced  1/26/11)

• As Of Today, Twelve Democrats Have Signed On To Repeal IPAB. (H.R. 452, Introduced  1/26/11)

BUT OBAMA’S JUST GETTING STARTED – NO WONDER HE SAYS HE NEEDS FOUR MORE YEARS FOR OBAMACARE

January 1, 2013: Medicare Tax Increase Is Implemented. “Increases in Medicare Part A (hospital insurance) tax rate on wages by 0.9% on earnings over $200,000 for individual taxpayers and $250,000 for married couples filing jointly and imposes a 3.8% assessment on unearned income for higher-income taxpayers.” (Kaiser Family Foundation, “Implementation Timeline,” Kaiser Family Foundation, Accessed 12/1/11)

• The Medicare Tax Increase Will Raise Over $210.2 Billion To Fund ObamaCare. ("Estimated Revenue Effects Of The Manager's Amendment To The Revenue Provisions Contained In The 'Patient Protection And Affordable Care Act," Joint Committee On Taxation Report, 3/20/10)

January 1, 2013: ObamaCare Implements A Tax On Medical Devices. “Imposes an excise tax of 2.3% on the sale of any taxable medical device.” (Kaiser Family Foundation, “Implementation Timeline,” Kaiser Family Foundation, Accessed 12/1/11)

• $20 Billion Over 10 Years From A New 2.3% Tax On Medical Device Manufacturers. ("Estimated Revenue Effects Of The Manager's Amendment To The Revenue Provisions Contained In The 'Patient Protection And Affordable Care Act," Joint Committee On Taxation Report, 3/20/10)

Hudson Institute Study Found That The Tax Will Force The Medical Device Industry To Cut 45,700 U.S. Workers. “The 21-page study projects the tax roughly will double the corporate tax bill on the medical device industry, causing it to shift 10 percent of its production to low-tax offshore sites and shrink its U.S. employment by 11 percent, or 45,700 workers.” (Jeff Swiatek, “Medical Device Debate: Will Tax Spur Jobs Or Stunt Innovation?” The Indianapolis Star, 9/27/11)

• ObamaCare’s Medical Devices Tax Is Causing Michigan-Based Medical Device Manufacturer Stryker To Cut Five Percent Of Its Workforce – Approximately 1,000 Employees. “Stryker, the Kalamazoo-based maker of artificial hips and knees, will cut 5% of its global workforce by the end of next year to reduce costs in the face of new fees on device makers required by the U.S. health care law. The job cuts will reduce annual pretax operating costs by more than $100 million beginning in 2013, when the medical-device excise tax is scheduled to take effect, Stryker said Thursday in a statement. Stryker had more than 20,000 employees as of Dec. 31, according to Bloomberg News data. ” (“Stryker To Cut 5% Of Workforce,” Detroit Free Press, 11/11/11)
• Adarza Biosystems Inc. CEO Rand Henke: Medical Device Tax Is Keeping Adarza From Expanding. “The company has been sustained to this point by National Institutes of Health grants and some contracts. But Adarza wants to get to the next level, large-scale production, and that will require a major corporate partner. The threat of a medical device excise tax, amid other economic barriers, has kept that critical deal from happening. ‘The money lost from the consequences of that tax exceeds what will be raised,’ Henke said.” (Tom Tobin, “Health Care: The Everywhere Issue,” The Rochester Democrat And Chronicle, 9/25/11)
• ObamaCare’s 2.3 Percent Tax On Medical Devices Will Keep Cook Medical, Inc. From Expanding. “It will cost Cook, the world’s largest privately owned medical device company, about $17 million of its $1 billion in annual U.S. sales. [Kem Hawkins – President of Cook Group Inc.]Hawkins said. ‘That’s a plant a year that we’re not able to invest in. Or it’s a large clinical study that we can’t invest in. Or it’s maybe 10 or 12 or 15 new product innovations that we can’t reinvest in,’ Hawkins said. ‘If we can’t build the plants, then we can’t hire the people.’” (Tony Pugh, “Medical Device Makers Push Congress To Repeal Excise Tax,” McClatchy, 9/22/11)