8/14/2019 Senate Bill is STILL A Government Takeover of Health Care

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 Even Without the Medicare Buy-In,

Senate Bill is STILL A Government Takeover of Health CareDecember 15, 2009 

While Democrats’ latest back-room deal is being reported as a moderate compromise now that press reportsindicate the Medicare buy-in has been dropped at Sen. Lieberman’s insistence, legislation being considered in theSenate (H.R. 3590) would still represent a government takeover of health care, with all of its adverse effects on the American people:

Higher Premiums: The Congressional Budget Office (CBO) has confirmed that the legislation would raise healthcare premiums for struggling middle-class families, resulting in non-group premium increases of $300 per year forindividuals and $2,100 for families. While the Obama campaign promised that its plan would reduce premiums by$2,500 per year for families, CBO confirmed that premiums will still continue to rise—and for millions, premiumswill rise higher than under current law.

Job-Killing Taxes: The bill still contains more than $400 billion in tax increases, many of which start in 2010—

exactly the wrong solution for American families during a severe recession. The Congressional Budget Officepreviously noted that mandates on employers to offer insurance “could reduce the hiring of low-wage workers,whose wages could not fall by the full cost of…a substantial pay-or-play fee if they were close to the minimumwage.” Moreover, other taxes included in the bill—such as those on drugs, medical devices, and —would be basedon to individuals and families in the form of higher premiums.

Lost Coverage: CBO has confirmed that up to 10 million people will lose their offer of employer-sponsored healthcoverage under the Senate bill—to say nothing of the millions of seniors who will lose access to Medicare Advantage plans. Contrary to President Obama’s repeated promises that “You will not have to change [healthinsurance] plans,” CBO also found that “relatively few non-group policies would remain grandfathered by 2016”—meaning millions of individuals will lose their current individual health insurance plans as a result of Democrats’ government takeover of health care.

Higher Health Costs: The Obama Administration’s own actuaries have confirmed that the Senate bill, like thePelosi House bill, would raise, not lower, the growth of health care costs—raising serious questions about thesustainability of the massive new entitlements being created.

Tril l ions in New Spending: While Democrats allege the Senate bill would spend “only” $848 billion, a moreaccurate picture of the bill’s spending provisions finds that in its first ten years of full implementation, this “moderate” legislation would spend $2.5 trillion—this at a time when the federal government is already sufferingfrom record deficits and debt.

Government-Run Insurance: Press reports indicate that the Senate bill will maintain a “Fannie Med” programof government-run insurance spearheaded by the Office of Personnel Management; while the details of such aprogram have yet to see the light of day, a “Fannie Med” type approach would likely result in additional taxpayer

liability and massive federal bailouts should this insurance program prove unsustainable. Moreover, the bill placesnew restrictions on insurance plans, causing millions to lose their current coverage and funneling these individualsinto government-run Exchanges.

The American people remain greatly concerned about uncontrolled federal spending and record-highunemployment, yet the Democrat “compromise” in the Senate would exacerbate both problems. Many mayquestion: Is this the best “reform” Democrats can achieve—and what are the majority’s misplaced priorities that itremains so fixated on enacting a government takeover of health care?

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