Seniors Suffer the Brunt of ObamaCare’s Side-Effects
Democrats Break Promise to America’s Seniors as ObamaCare Causes Higher Premiums, Dropped Coverage and Medicare Cuts
Just a day out from the one-year anniversary of their job-destroying healthcare law, a coalition of Obama administration allies is hoping Americans forget ObamaCare’s devastating impact on senior citizens:
“The Center for American Progress will announce today that the events – with such sponsors as AFSCME, SEIU and U.S. PIRG — include ‘small business roundtables/workshops, seniors’ town hall meetings, young adult information sessions, press conferences with Members of Congress and Administration officials … An online campaign featuring videos of real Americans benefitting from the law will complement the grassroots activities. … [T]argeted radio advertising … and social-media advertising … will also be launched…’
“–EVENT THEMES: Tuesday, “Moving Forward, Protecting Seniors Care’ ” (Mike Allen, “Health Reform Turns 1: White House Allies Plan Week-Long Blitz, ‘Moving Forward'”,Politico Playbook, 3/17/2011)
A year after selling ObamaCare as a silver bullet for the nation’s healthcare ills, it is increasingly clear that Democrats healthcare sales job was one of wildly exaggerated promises, eventually broken:
PROMISE MADE: Obama said Americans would be able to keep their doctor and insurance plan if they wanted—”period”:
OBAMA: “If you like your doctor, you will be able to keep your doctor. Period. If you like your health care plan, you will be able to keep your health care plan. Period. No one will take it away.” (Barack Obama, “Obama: ‘If You Like Your Doctor, You Can Keep Your Doctor,'” The Wall Street Journal, 6/15/2009)
OBAMA: “So if you like your plan, you can keep your plan. If you like your doctor, you can keep your doctor. I don’t want to interfere with people’s relationships between them and their doctors.” (Barack Obama, “Remarks by the President on Health Care Reform in Strongsville, OH,” The White House, 3/15/2010)
AND BROKEN: Americans are losing coverage, and seniors in particular are seeing their plans discontinued:
MORE THAN 25 PERCENT OF COMPANIES TO DROP COVERAGE FOR RETIREES:“More than one-quarter of companies plan to discontinue retiree medical sponsorship in 2012 for at least one segment of current and/or future retirees (Figure 22).” (“16th Annual Towers Watson/National Business Group on Health Employer Survey on Purchasing Value in Health Care,” Towers Watson, March 2011)
3M ELIMINATING HEALTH PLANS FOR SENIORS: “3M Co. confirmed it would eventually stop offering its health-insurance plan to retirees, citing the federal health overhaul as a factor.” (Janet Adamy, “3M to Change Health-Plan Options for Workers,” The Wall Street Journal, 10/4/2010)
MEDICARE SCOREKEEPER SAYS OBAMA STATEMENT NOT TRUE: “The landmark legislation probably won’t hold costs down, and it won’t let everybody keep their current health insurance if they like it, Chief Actuary Richard Foster told the House Budget Committee. His office is responsible for independent long-range cost estimates.” (“Medicare Official Doubts Health Law Savings,” Associated Press, 1/26/2011)
840,000 FORCED TO CHANGE INSURANCE: “The Principal Financial Group announced on Thursday that it planned to stop selling health insurance, another sign of upheaval emerging among insurers as the new federal health law starts to take effect.
“The company, based in Iowa, provides coverage to about 840,000 people who receive their insurance through an employer.
“Principal’s decision closely tracks moves by other insurers that have indicated in recent weeks that they plan to drop out of certain segments of the market, like the business of selling child-only policies. State regulators say some insurance companies are already threatening to leave particular markets because of the new law….
” ‘It’s just going to drive the little guys out,’ said Robert Laszewski, a health policy consultant in Alexandria, Va. Smaller players like Principal in states like Iowa, Missouri and elsewhere will not be able to compete because they do not have the resources and economies of scale of players like UnitedHealth, which is among the nation’s largest health insurers.
“Mr. Laszewski is worried that the ensuing concentration is likely to lead to higher prices because large players will no longer face the competition from the smaller plans. ‘It’s just the UnitedHealthcare full employment act,’ he said.”(Reed Abelson, “Insurer Cuts Health Plans as New Law Takes Hold,” The New York Times, 9/30/2010)
PROMISE MADE: One of the animating justifications for a healthcare bill was the need to “bend the cost curve” downward and control rising medical care costs:
VICE PRESIDENT JOE BIDEN: “But, look, I think, if I can lay out, Mr. President, what I think we all agree on, and then figure out whether as a way to deal with the deficit end of this — bending the cost curve, to use a phrase you and many others have used, Mr. President.” (“Remarks by The President In Discussion of the Deficit at Bipartisan Meeting on Health Care Reform,” The White House, 2/25/2010)
AND BROKEN: By any reasonable account, ObamaCare has failed miserably in controlling healthcare costs:
OBAMACARE MAKES NO DENT IN RISING HEALTHCARE COSTS: “The health-care overhaul enacted last spring won’t significantly change national health spending over the next decade compared with projections before the law was passed, according to government figures released Thursday.
“The report by federal number-crunchers casts fresh doubt on Democrats’ argument that the health-care law would curb the sharp increase in costs over the long term, the second setback this week for one of the party’s biggest legislative achievements.” (Janet Adamy, “Health Outlays Still Rising,” The Wall Street Journal, 9/8/2010)
PROMISE MADE: Obama and other prominent Democrats also frequently claimed that premiums would decrease if we passed their government takeover of healthcare:
OBAMA: “‘You’ll be able to buy in, or a small business will be able to buy into this pool,’ Mr. Obama said. ‘And that will lower rates, it’s estimated, by up to 14 to 20 percent over what you’re currently getting.‘” (“Will Health Care Bill Lower Premiums?,” Associated Press, 3/17/2010)
…AND BROKEN: Several health insurers have indicated an intention to raise premiums, increases likely to hit seniors and those on fixed incomes the hardest:
ASSOCIATED PRESS FACTCHECK: NOT SO FAST. “Buyers, beware: President Barack Obama says his health care overhaul will lower premiums by double digits, but check the fine print.
“Premiums are likely to keep going up even if the health care bill passes, experts say. If cost controls work as advertised, annual increases would level off with time. But don’t look for a rollback. Instead, the main reason premiums would be more affordable is that new government tax credits would help cover the cost for millions of people.
“Listening to Mr. Obama pitch his plan, you might not realize that’s how it works.” (“Will Health Care Bill Lower Premiums?”, Associated Press, 3/17/2010)
“HEALTH INSURERS PIN RATE HIKES ON HEALTH LAW”: “Health insurers say they plan to raise premiums for some Americans as a direct result of the health overhaul in coming weeks, complicating Democrats’ efforts to trumpet their signature achievement before the midterm elections.” (Janet Adamy, “Health Insurers Pin Rate Hikes on Health Law,” The Wall Street Journal, 9/7/2010)
63 PERCENT OF EMPLOYERS PLAN PREMIUM INCREASES: “The economic slowdown and the likely increase in costs due to health care reform have led many employers to use various incentives to promote greater individual responsibility… Over the last year, employers put more emphasis on increasing premium contributions (Figure 23). Nearly two-thirds of companies have increased the share employees and their dependents pay in premium contributions (versus 2010).” (“16th Annual Towers Watson/National Business Group on Health Employer Survey on Purchasing Value in Health Care,” Towers Watson, March 2011)
PROMISE MADE: Obama promised his healthcare overhaul wouldn’t cut Medicare benefits, claiming that “nobody is talking about reducing Medicare benefits”:
OBAMA: “At an AARP-hosted forum earlier this summer, Obama reassured seniors that ‘nobody is talking about reducing Medicare benefits.’” (Peter Suderman, “Obama Says Health-Care Reform Won’t Cut Medicare Benefits. CBO Disagrees.”,Reason, 9/23/2009)
BROKEN YET AGAIN: In fact, ObamaCare includes over $500 billion in cuts to Medicare, putting in jeopardy benefits that seniors currently enjoy:
$500 BILLION IN MEDICARE CUTS: “The reform plan includes cutting the costs of Medicare, the government-run health plan for seniors, by about $500 billion.”(“Pelosi: GOP Used Fear to Turn Elderly Against Health Care Bill,” CNN’s “Political Ticker,” 3/29/2010)
NEW TAX ON INVESTMENT INCOME: “It would cut an additional $60 billion from Medicare, bringing total cuts to the program to more than $500 billion over the next 10 years. And it would delay a tax on high-cost insurance polices until 2018, replacing the lost revenue by imposing the Medicare payroll tax on investment income for families earning more than $250,000 a year.” (Shailagh Murray and Lori Montgomery, “With Senate ‘Fixes’ Bill, GOP Sees Last Chance to Change Health-Care Reform,” The Washington Post, 3/24/2010)
MEDICARE SCOREKEEPER: SENIORS WILL FEEL PINCH FROM MEDICARE ADVANTAGE CUTS THIS YEAR:“A Medicare official concedes that seniors may have to dig deeper into their wallets next year thanks to the health care law.
“The new analysis obtained by POLITICO finds the health care overhaul will result in increased out-of-pocket costs for seniors on Medicare Advantage plans.
“Richard Foster, the actuary for the Centers for Medicare and Medicaid, also tells Senate Republicans that the overhaul will result in ‘less generous benefit packages’ for Medicare Advantage plans next year. Foster is independent from the administration and non-partisan.” (Jennifer Haberkorn, “Medicare: Reform May Cost Seniors,” Politico, 10/13/2010)
NURSING HOMES, HOSPICE CARE TO FACE STEEP CUTS FROM OBAMACARE:“Certain industries stand to face the sharpest cuts in government money, Moody’s says, namely home health, as well as oxygen and durable equipment companies. Hospice care, nursing homes and specialty hospitals are also expected to lose millions off what they receive now. Moody’s says we can expect consolidation in health industries, as providers acquire different health-care entities to diversify….
“Alica Mitchell, a spokeswoman for the American Hospitals Association said: ‘The AHA will remain vigilant against further Medicare and Medicaid reductions, particularly given that hospitals already face $155 billion in cuts as part of health reform.‘ We’ve also reached out to the Federation of American Hospitals and we’ll update the post if we hear back.” (Suzanne Sataline, “A Look Down the Road at Medicare Cuts,” The Wall Street Journal’s Health Blog, 11/15/2010)