Facts are Stubborn Things: Partisan Health Law Fails to Lower Costs for Americans

Secretary Sebelius’ Claims in Washington Post Op-ed Disputed by the Facts

Today, Health and Human Services Secretary Kathleen Sebelius penned an op-ed in the Washington Post attempting to sell the American people on the cornerstone of the President’s domestic agenda: the $2.6 trillion, 2,700 page partisan health law. Facts are stubborn things, however, and despite the misleading rhetoric from the White House, report after report demonstrates that President Obama’s massive health law will do little to address the number one concern of the American people: skyrocketing health care costs.

Here’s a closer look at what the new health law really means for families, seniors, and entrepreneurs:

Secretary Sebelius asserts that the $2.6 trillion health law “makes health plans more affordable for small businesses and individuals by creating” insurance exchanges. But the reality is that it will increase cost of insurance because of the law’s mandates:

$2,100 increase in premiums for families buying insurance on their own due to ObamaCare. (Letter from the Congressional Budget Office to Senator Evan Bayh regarding health care premiums, November 30, 2009)

Satisfaction with health care costs has been on a downward trend since 2009 – down from 26 percent satisfaction then to 20 percent now. (General Gallop Poll, November 16, 2011)

65 percent of small businesses say it does nothing to slow down the cost of health insurance – the primary cost driver facing our nation’s job creators despite President Obama’s pledge to reduce premiums for American families by $2,500. (National Federation of Independent Business (NFIB) Foundation Study, July 2011)

77 percent of small businesses say it will increase taxes which in turn will directly affect their ability to create jobs. (National Federation of Independent Business (NFIB) Foundation Study, July 2011)

Secretary Sebelius claims the partisan health spending law creates a “health insurance market where premiums stay in check and Americans get their money’s worth.” But the reality is that it will increase cost of insurance:

Insurance premiums have increased by almost 200 percent from 3 percent in 2010 to 9 percent in 2011 for families since the passage of the partisan health law. (Annual employer health benefits survey conducted by the Kaiser Family Foundation and the Health Research & Educational Trust, September 27, 2011)

9.4 percent increase in private health insurance premiums in 2014 (4.4 percentage points higher than without the health law). (“National Health Spending Projections Through 2020: Economic Recovery And Reform Drive Faster Spending Growth,” Health Affairs, July 28, 2011)

Secretary Sebelius says that the $2.6 trillion health law “gives us tools to reduce costs.” But the reality is that it will increase costs:

The cost of health care will continue to rise from 8 percent in 2011 to 8.5 percent in 2012. (Pricewaterhouse Coopers Health Research Institute Study, Medical Cost Trends for 2012)

$311 billion projected increase in health costs due to ObamaCare. (Report from Richard S. Foster, Chief Actuary at the Centers for Medicare & Medicaid Services, April 22, 2010)

The President's own Chief Actuary stated that savings from the health law’s programs, estimated by the Administration to be $50 billion over 10 years, are 'unlikely.' (Letter from Richard S. Foster, Chief Actuary at the Centers for Medicare & Medicaid Services, September 2, 2011)

$118 billion in new costs imposed on states for ObamaCare's Medicaid expansions—budgetary costs that will crowd out other state programs like education or law enforcement. (Joint Report by the Senate Finance Committee and House Energy and Commerce Committee, Medicaid Expansion in the New Health Law: Costs To The States, March 1, 2011)

Secretary Sebelius claims the partisan law is “designed to support physicians, hospitals, and other providers in their lifesaving work.” But the reality is that it will increase cost of health services:

8.9 percent increase in cost of physician and clinical services in 2014 (3.1 percent higher than without the health law). (“National Health Spending Projections Through 2020: Economic Recovery And Reform Drive Faster Spending Growth,” Health Affairs, July 28, 2011)

7.2 percent increase in hospital spending in 2014 (1.0 percent higher than without the health law). (“National Health Spending Projections Through 2020: Economic Recovery And Reform Drive Faster Spending Growth,” Health Affairs, July 28, 2011

###

Next Article Previous Article