Dems Are Bending the Broken Promises Curve Up

September 22, 2011

New Reports on Government Healthcare Takeover Offer More Evidence of Higher Premiums and Dropped Coverage

A new report commissioned by the state of Ohio predicts that insurance premiums are expected to increase by a whopping 55% to 85% after key provisions of the government healthcare takeover kick in—a clear violation of Democrats’ frequent promise that their healthcare law would “bend the cost curve” down.
This report follows new revelations documenting that Obama officials deliberately ignored information that their long-term care insurance program created under the government healthcare takeover would be “a fiscal disaster”—a scandal that some say parallels the ongoing investigations into now-bankrupt Solyndra.
To top it off, former DNC chair Howard Dean this week voiced his agreement with a McKinsey study that predicted 30% of employers would drop coverage for their employees, contradicting both protests and earlier promises from Democrats.

BACKGROUND

A new report commissioned by the state of Ohio predicts that insurance premiums are expected to increase by a whopping 55% to 85% after key provisions of the government healthcare takeover kick in—a clear violation of Democrats’ frequent promise that their healthcare law would “bend the cost curve down”:

INDIVIDUAL INSURANCE POLICIES COULD JUMP 55 TO 85% DUE TO GOVERNMENT HEALTHCARE TAKEOVER: “Ohioans who buy individual insurance policies could see their premiums jump 55 to 85 percent in 2014 when key provisions of the new federal health-care law kick in, according to a new report.” (Catherine Candisky, “Insurance Premiums Expected to Increase, Report Says,” The Columbus Dispatch, 9/20/2011)

SMALL BUSINESS INSURANCE POLICIES COULD SPIKE BY 5 TO 15%: “The analysis by Milliman Inc. projected that premiums on policies offered through small businesses could increase 5 to 15 percent while the cost of insurance through large employers may jump 3 to 5 percent.” (Catherine Candisky, “Insurance Premiums Expected to Increase, Report Says,” The Columbus Dispatch, 9/20/2011)

AND THAT’S BEFORE COUNTING MEDICAL INFLATION OF 7-8% ANNUALLY: “The increases do not include medical inflation which has been pushing health care costs up about 7 to 8 percent a year.” (Catherine Candisky, “Insurance Premiums Expected to Increase, Report Says,” The Columbus Dispatch, 9/20/2011)

FLASHBACK: DEMOCRATS PROMISED THEIR GOVERNMENT HEALTHCARE TAKEOVER WOULD “BEND THE COST CURVE DOWN.” “[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)

OBAMA SAID HIS LAW WOULD “LOWER RATES… BY UP TO 14 TO 20 PERCENT”:“‘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)

This report follows new revelations documenting that Obama officials deliberately ignored information that their long-term care insurance program created under the government healthcare takeover would be “a fiscal disaster”—a scandal that some say parallels the ongoing investigations into now-bankrupt Solyndra:

“TROVE OF INTERNAL E-MAILS” SHOW OBAMA OFFICIALS “KNEW THAT A PROGRAM FOR LONG-TERM CARE” WAS A “FISCAL DISASTER” BUT WENT AHEAD ANYWAY: “The Solyndra solar subsidy flare-up is getting all the media attention, but arguably as great a White House scandal concerns one of ObamaCare’s multiple new entitlements. A trove of internal emails uncovered by congressional investigators shows that administration officials knew that a new program for long-term care really was the fiscal disaster that critics claimed at the time.

“Known by the acronym Class, the government-backstopped insurance for nursing homes, home health aides and the like was among the worst accounting gimmicks used to make it seem as if national health care would reduce the deficit.” (Joseph Rago, “GOP Vets an ObamaCare Program,” The Wall Street Journal, 9/19/2011)

DEPUTY HHS SECRETARY TOLD TOP DEMS THAT PROGRAM LOOKED “LIKE A RECIPE FOR DISASTER”: “The emails, obtained by a joint Republican panel led by Sen. John Thune and House Energy and Commerce Chairman Fred Upton, reveal that the administration knew the program was designed to fail and went ahead anyway. A Health and Human Services deputy secretary repeatedly warned his superiors and Democratic staff on the Hill that the Class program ‘seems like a recipe for disaster to me.’ Later, he even suggested that Democrats include a ‘failsafe’ for public support.” (Joseph Rago, “GOP Vets an ObamaCare Program,” The Wall Street Journal, 9/19/2011)

MEDICARE SCOREKEEPER RICK FOSTER PREDICTED THE “PROGRAM WOULD COLLAPSE IN SHORT ORDER AND REQUIRE SIGNIFICANT FEDERAL SUBSIDIES TO CONTINUE”: ” ‘Thirty-six years of actuarial experience,’ Mr. Foster wrote to the Medicare legislative affairs office, ‘lead me to believe that this program would collapse in short order and require significant federal subsidies to continue.’ He later wrote that ‘I assume you’ve conveyed these concerns to the staff but, if not, let me know and we can express these concerns in a memo.'” (Joseph Rago, “GOP Vets an ObamaCare Program,” The Wall Street Journal, 9/19/2011)

BUT DEMOCRATS DECIDED TO GO AHEAD ANYWAY: “A Senate committee staffer ‘decided she does not think she needs additional work on the actuarial side,’ an HHS email later reported back.” (Joseph Rago, “GOP Vets an ObamaCare Program,” The Wall Street Journal, 9/19/2011)

To top it off, former DNC chair Howard Dean this week voiced his agreement with a McKinsey study that predicted 30% of employers would drop coverage for their employees, contradicting both protests and earlier promises from Democrats:

DEAN AGREES WITH MCKINSEY STUDY: “There was a McKinsey study, which the Democrats don’t like, but I do, and I think it’s true. Most small businesses are not going to be in the health insurance business anymore after this thing goes into effect.” (Conn Carroll, “Dean: Employers Will Drop Coverage Under ObamaCare,” The Washington Examiner, 9/20/2011)

MCKINSEY STUDY FOUND 30% OF EMPLOYERS SAYING THEY WOULD “DEFINITELY OR PROBABLY” DROP COVERAGE: “Once provisions of the Affordable Care Act start to kick in during 2014, at least three of every 10 employers will probably stop offering health coverage, a survey released Monday shows.

“While only 7% of employees will be forced to switch to subsidized-exchange programs, at least 30% of companies say they will ‘definitely or probably’ stop offering employer-sponsored coverage, according to the study published in McKinsey Quarterly.

“The survey of 1,300 employers says those who are keenly aware of the health-reform measure probably are more likely to consider an alternative to employer-sponsored plans, with 50% to 60% in this group expected to make a change. It also found that for some, it makes more sense to switch.” (Russ Britt, “Firms Halting Coverage as Reform Starts: Survey 30% of Companies Say They’ll Stop Offering Health Plans,” Market Watch, 6/6/2011)

PRESIDENT OBAMA, 2009: “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. No matter what.” (Mary Lu Carnevale, “Obama: ‘If You Like Your Doctor, You Can Keep Your Doctor’,” The Wall Street Journal, 6/15/2009)