GOPAC 2012 State and Local Summit


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Grace-Marie Turner's presentation for GOPAC's 2012 State and Local Summit.

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GOPAC 2012 State and Local Summit

  1. 1. A not-for-profit health and tax policyresearch organization OBAMACARE: Taking it to the Court of Public Opinion Grace-Marie Turner August 6, 2012 GOPAC 2012 State and Local Summit /GalenInstitute
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  6. 6. Source: Ari Melber,”POLL: Half of Americans Don‟t Know How Court Ruled on Healthcare,” The Nation, July 4, 2012,
  7. 7. A not-for-profit health and tax policyresearch organization /GalenInstitute
  8. 8. What supporters highlight: A not-for-profit – “Free” preventive care – Allowing “children” up to age 26 health and tax policyresearch organization on parent’s policies – Pools for pre-existing condition policies – $250 for seniors with high drug costs /GalenInstitute
  9. 9. Americans’ views of Supreme Court decision• Americans say the health law will make things worse rather than better for taxpayers, businesses, doctors, and those who currently have health insurance.• Health care will be an extremely or very important issue for 82% of Americans in deciding their vote for the president in November.• Opposition to the law is higher now than before the Supreme Court decision.Sources: “Americans: Healthcare Law Helps Some, Hurts Others ,” Gallup, July 16, 2012, The New York Times/CBSNews Poll, July 11-16, 2012, “Kaiser Health Tracking Poll,” The Kaiser Family Foundation, July2012,
  10. 10. Source: Kaiser Family Foundation, July 2012.
  11. 11. What ObamaCare really does  Expands taxpayer subsidies to +/- 30 million people  Citizens required to purchase approved health insurance or face new taxes  Significant new federal regulation of the health sector with 159 new federal regulatory agencies and programs  Most employers required to offer coverage  Money from Medicare plus IBAB rationing board Financed by  $741 billion in cuts to Medicare  $569 billion in new taxes and penalties Real cost $2.6 trillion over 10 yearsSource: “Letter to the Honorable John Boehner providing an estimate for H.R. 6079, the Repeal of Obamacare Act,” Congressional Budget Office, July24, 2012,
  12. 12. Two issues:Taxes. Trust.
  13. 13. Source: Alison Meyer, “Chart of the Week: Obamacare‟s 17 New Taxes,” The Heritage Foundation, March 25, 2012,ttp://
  14. 14. ObamaCare’s New TaxesSource: Philip Dittmer and William McBride, “Obamacares New Taxes, And How You May Be Affected,” Tax Foundation, July 5, 2012,
  15. 15. More ObamaCare TaxesSource: Philip Dittmer and William McBride, “Obamacares New Taxes, And How You May Be Affected,” Tax Foundation, July 5, 2012,
  16. 16. Do you think the health care reform plan that Congress passed recently will increase, decrease, or have no effect on each of the following: Taxes Federal Deficit Health Care Costs Insurance Premiums Health Care QualitySource: AM&A, Resurgent Republic 1st Anniversary Survey of Likely Voters, April 25-27, 2010
  17. 17. TRUST: Health Costs go UP • Foster: “False more so than true” that law will lower costs for taxpayers • Insurance rising 9% to $15,000/yr. in 2011 Latest CBO cost estimate: $2.6 trillion/10 yrs. • Gruber: Premiums up to 30% higher than without the lawCongressional Budget Office and the Joint Committee on Taxation, “An Analysis of Health Insurance Premiums Under the Patient Protection and AffordableCare Act,” November 30, 2009, Chief Medicare Actuary on Presidents health care claims: "I wouldsay false, more so than true,“ House Budget Committee, January 26, 2011, “2011 Employer Health BenefitsSurvey,” Kaiser Family Foundation/Health Research & Educational Trust, September 27, 2011,
  18. 18. Costs won’t fall by $2,500/family CBO: The law will raise some family premiums by $2,100 in 2016 above what they would have been without the reform law Health insurance already has increased by $1,700 for the average family since 2009 to $15,073 in 2011 Richard S. Foster, Chief Actuary, “Estimated Financial Effects of the Patient Protection and Affordable Care Act, as Amended,” U.S. Department of Health and Human Services, Centers for Medicare & Medicaid Services, Office of the Actuary, April 22, 2010, Congressional Budget Office and the Joint Committee on Taxation, “An Analysis of Health Insurance Premiums Under the Patient Protection and Affordable Care Act,” November 30, 2009, “Employer Health Benefits 2011 Annual Survey,” The Kaiser Family Foundation and Health Research & Educational Trust, September 27, 2011,
  19. 19. TRUST: “If you like your health insurance…” • 51 to 80% of Americans will lose current coverage, according to Obama admin. estimates • CBO: Up to 20 million could lose job-based plans • McKinsey: Up to 80 million will be forced to change policies • Child-only policies will vanish in 17 states • 35 million more will move from job-based insurance to taxpayer-subsidized exchanges“Fact Sheet: Keeping the Health Plan You Have: The Affordable Care Act and „Grandfathered‟ Health Plans,” U.S. Department of Health and HumanServices,,"CBO and JCTs Estimates of the Effects of the Affordable Care Act on the Number of People Obtaining Employment-Based Health Insurance," Congressional Budget Office, March2012, Singhal, Jeris Stueland, and Drew Ungerman, “How US health care reform will affect employee benefits,” McKinsey Quarterly, June2011,“Health Care Reform Law‟s Impact on Child-Only Health Insurance Policies,” Senate Committee on Health, Education, Labor and Pensions, August2, 2011,,%202011.pdf.Douglas Holtz-Eakin and Cameron Smith "Labor Markets and Health Care Reform: New Results," American Action Forum, May27, 2010,
  20. 20. Source: Frank Hill, “The High Cost Impact of More Regulation and Admin/Executive Staff on Health Care Inflation,” Telemachus, July 22, 2012,
  21. 21. Studies show law fails to meet goals • Health costs and health spending increase • One-third of businesses may drop insurance • Young people worried about high cost of policies • Doctors concerned about Medicaid expansion and fraying the safety net • Seniors worried about rationing of care and finding a doctor who takes Medicare • 30 million will remain uninsured --
  22. 22. An onslaught of bureaucracy• Exchange regs issued March 12; final rules after the election• States to decide content of Essential Health Benefit packages• Medicaid expansion? No answers from Washington to key questions from governors
  23. 23. State Action (or not) Re: ExchangesSource: “State Action Toward Creating Health Insurance Exchanges, as of August 1, 2012,” The Henry J. Kaiser Family Foundation,
  24. 24. A not-for-profit health and tax policyresearch organization What’s Wrong With Health Insurance Exchanges… By Rita E. Numerof, Ph.D. • May 2012 /GalenInstitute
  25. 25. What’s Wrong with Health Exchanges •Exchanges will limit choice, create massive bureaucracies, invade citizen privacy, and place huge administrsative burdens on states already strapped for cash. •Cato believes legislators can protect against employer mandate penalties by not setting up exchanges. •Thinking ahead: What can states do to can create market-based solutions that leverage the laws of supply and demand to enable greater access to more affordable coverageSource: Rita E. Numerof, Ph.D., “What‟s Wrong with Health Insurance Exchanges…,” Galen Institute, May 2012,
  26. 26. Source: Avik Roy, “How Do Blue States Expand Medicaid? By Paying Doctors Less,” Forbes: The Apothecary, July 23, 2012,
  27. 27. Health care in 2012 • Legislation Depends upon the outcome of the election • Regulation 13,000+ pages so far • Legal Other court challenges continue • Political The voters will ultimately decide on Nov.
  28. 28. Widespread pushback • Economic nightmare A not-for-profit health and tax policy – Killing jobs and suffocating economic recoveryresearch organization – 46% of doctors plan to leave practice • • Impossible complexity – Multiple deadlines missed by Obama bureaucrats – Enormous costs, complexity, privacy issues – 13,000 pages of regulations -- so far • Resistance from states – Balking at setting up exchanges or otherwise complying – Blocking Medicaid expansion /GalenInstitute
  29. 29. Some
  30. 30. Americans agreed on goals for health reform… • The U.S. needs health reform to: – make coverage more affordable – assure quality, and – expand access to insurance • Most people rate their own coverage as good or excellent • They want stability. Change is for
  31. 31. Who said this?“You should never try to tell people what theyought to do because all of their circumstancesare different.“But if you give them very good timelyinformation, they are going to make their owndecisions in ways, in general, that are going tobe better for them and better for the system asa whole.” ― Ron Kirby, transportation planning coordinator for the Metropolitan Washington Council of Governments Ashley Halsey III and Ed O‟Keefe, “Earthquake illustrates colossal challenge of evacuating Washington, D.C.” The Washington Post, August 24, 2011.
  32. 32. Growth of HSA-Qualified High-Deductible Health Plan Enrollment, Covered Lives (Millions), March 2005 to January 2012 Note: Companies reported enrollment in the large- and small-group markets according to their internal reporting standards, or by state-specific requirements for each state. The “Other Group” category contains enrollment for companies that could not break down their group membership into large- and small-group categories within the deadline for reporting. The “Other” category was necessary to accommodate companies that were able to provide information on the total number of people covered by HSA/HDHP policies, but were not able to provide a breakdown by market category within the deadline for reportingSource: AHIP Center for Policy and Research (May 2012).
  33. 33. Even Europeans going the other way • Consumerism • Value of private enterprise and competition • Doctor-patient relationship • Decentralized
  34. 34. Our mission: Taxes and Trust: Key to 2012 A not-for-profit health and tax policyresearch organization Continue to resist ObamaCare. You have the power! This law cannot work and will bankrupt our country. It must be repealed! The American people want… /GalenInstitute Freedom. Innovation. Control.
  35. 35. Why ObamaCare Is Wrong for America How does the health care law drive up costs? Is your doctor really in charge of your health care decisions? Are your Constitutional rights threatened? Discover the law’s impact on your life in a new book from four nationally recognized health policy experts Published by Broadside Books, an imprint of HarperCollins
  36. 36. Grace-Marie Turner A not-for-profit health and tax policyresearch organization Galen Institute 703-299-8900 Subscribe to our free email alerts at /GalenInstitute