Raising Premiums is Not Reform
October 19, 2009
‘We knew this proposal would raise taxes. We knew it would slash Medicare. Now we know it will raise health insurance premiums. Americans support reform. But higher premiums, higher taxes, and cutting Medicare — that’s not reform’
WASHINGTON, D.C. - U.S. Senate Republican Leader Mitch McConnell made the following remarks on the Senate floor Monday regarding the importance of getting it right on health care reform:
“I don’t know of a single person who wants to see reimbursements cut to doctors who treat Medicare patients. But if Congress is going to step in and prevent it, we shouldn’t do it by racking up more debt on the government’s credit card.
“On Friday, the Treasury Department announced that the government ran a deficit of $1.4 trillion in the fiscal year that ended a few weeks ago — a deficit about three times the size of the previous all-time high.
“This should have been a wake-up call. But instead, within days of this sobering proof of Congress’s chronic inability to live within its means, Democrats in Congress want to borrow another quarter of a trillion dollars to keep doctors from getting a pay cut.
“Republicans want to fix this problem. But there are ways to pay for it. And when this matter comes before the Senate, Republicans will offer ways to pay for it without asking taxpayers to take on another quarter of a trillion dollars in debt.
“It’s perfectly obvious why Democrats want to resolve this issue outside the larger debate over health care. They’re doing it so they can say their health care plan doesn’t add to the deficit. It’s a gimmick, and a transparent one at that.
“Americans are tired of gimmicks, tired of Congress putting everything on the national charge card. We’re not teenagers. Our parents aren’t going to pay our bill at the end of the school year. The American people — our children and grandchildren — are the ones getting stuck with the bill. It’s time we act as if we’re aware of that.
“Higher debt is just one aspect of the Democrats’ health care plan that concerns Americans. At the outset of this debate, everybody agreed on one thing: any reform would have to address the primary problem with health care, and that’s cost. Yet every day we hear about some accounting gimmick that’s being used to conceal the true cost of this bill. And now we’re hearing that it will drive up premiums too.
“The director of the independent, non-partisan Congressional Budget Office, Doug Elmendorf, indicated in recent congressional testimony that parts of the Finance Committee proposal would lead to higher premiums — in other words, that health care costs would go up, not down, as a result of the Democrats’ latest health care proposal — a proposal that’s only going to get more expensive as the process moves forward in closed-door discussions between a handful of Democrat lawmakers and White House officials.
“This is just what the American people have feared all along — that lawmakers would lose sight of the purpose of reform and end up making problems worse, not better.
“The Finance Committee Bill includes a new tax on health insurance that most experts, including the CBO, agree would be passed straight to consumers, leading to higher premiums. One estimate suggests that this new tax on insurance plans will be passed on to families, costing them nearly $500 per year in higher premiums starting next year…long before any of the purported benefits of reform would take effect
“The Oliver Wyman Group, an international management consulting firm, has also looked at how the Finance Committee bill would impact premiums in a number of states. This is important because every state has different insurance laws. In states like Kentucky, Arizona, and Virginia — which have flexible insurance laws and generally lower premiums — the impact would be dramatic.
“Currently, the average family premium in these states is about $9,500 a year. Under the Baucus plan, that premium is expected to rise to nearly $17,000. That’s $7,500 more that the government is telling families they have to spend on health insurance. That’s $7,500 these families can’t use for the college fund or to plan for retirement. And while the Baucus plan may subsidize some insurance plans, the subsidies likely won’t be enough to offset these massive new costs imposed on many of these families.
“The bottom line is this: The Finance Committee bill has now been out for a few weeks. The experts are starting to estimate what it would mean for insurance premiums. And what we’ve seen so far isn’t good. This is precisely why Americans want us to debate these bills out in the open. This is why they want us to take our time until the true cost is known. And this is why they should have ample time to look at any proposed changes before Congress acts.
“We knew this proposal would raise taxes. We knew it would slash Medicare. Now we know it will raise health insurance premiums. Americans support reform. But higher premiums, higher taxes, and cutting Medicare — that’s not reform.”
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WASHINGTON, D.C. - U.S. Senate Republican Leader Mitch McConnell made the following remarks on the Senate floor Monday regarding the importance of getting it right on health care reform:
“I don’t know of a single person who wants to see reimbursements cut to doctors who treat Medicare patients. But if Congress is going to step in and prevent it, we shouldn’t do it by racking up more debt on the government’s credit card.
“On Friday, the Treasury Department announced that the government ran a deficit of $1.4 trillion in the fiscal year that ended a few weeks ago — a deficit about three times the size of the previous all-time high.
“This should have been a wake-up call. But instead, within days of this sobering proof of Congress’s chronic inability to live within its means, Democrats in Congress want to borrow another quarter of a trillion dollars to keep doctors from getting a pay cut.
“Republicans want to fix this problem. But there are ways to pay for it. And when this matter comes before the Senate, Republicans will offer ways to pay for it without asking taxpayers to take on another quarter of a trillion dollars in debt.
“It’s perfectly obvious why Democrats want to resolve this issue outside the larger debate over health care. They’re doing it so they can say their health care plan doesn’t add to the deficit. It’s a gimmick, and a transparent one at that.
“Americans are tired of gimmicks, tired of Congress putting everything on the national charge card. We’re not teenagers. Our parents aren’t going to pay our bill at the end of the school year. The American people — our children and grandchildren — are the ones getting stuck with the bill. It’s time we act as if we’re aware of that.
“Higher debt is just one aspect of the Democrats’ health care plan that concerns Americans. At the outset of this debate, everybody agreed on one thing: any reform would have to address the primary problem with health care, and that’s cost. Yet every day we hear about some accounting gimmick that’s being used to conceal the true cost of this bill. And now we’re hearing that it will drive up premiums too.
“The director of the independent, non-partisan Congressional Budget Office, Doug Elmendorf, indicated in recent congressional testimony that parts of the Finance Committee proposal would lead to higher premiums — in other words, that health care costs would go up, not down, as a result of the Democrats’ latest health care proposal — a proposal that’s only going to get more expensive as the process moves forward in closed-door discussions between a handful of Democrat lawmakers and White House officials.
“This is just what the American people have feared all along — that lawmakers would lose sight of the purpose of reform and end up making problems worse, not better.
“The Finance Committee Bill includes a new tax on health insurance that most experts, including the CBO, agree would be passed straight to consumers, leading to higher premiums. One estimate suggests that this new tax on insurance plans will be passed on to families, costing them nearly $500 per year in higher premiums starting next year…long before any of the purported benefits of reform would take effect
“The Oliver Wyman Group, an international management consulting firm, has also looked at how the Finance Committee bill would impact premiums in a number of states. This is important because every state has different insurance laws. In states like Kentucky, Arizona, and Virginia — which have flexible insurance laws and generally lower premiums — the impact would be dramatic.
“Currently, the average family premium in these states is about $9,500 a year. Under the Baucus plan, that premium is expected to rise to nearly $17,000. That’s $7,500 more that the government is telling families they have to spend on health insurance. That’s $7,500 these families can’t use for the college fund or to plan for retirement. And while the Baucus plan may subsidize some insurance plans, the subsidies likely won’t be enough to offset these massive new costs imposed on many of these families.
“The bottom line is this: The Finance Committee bill has now been out for a few weeks. The experts are starting to estimate what it would mean for insurance premiums. And what we’ve seen so far isn’t good. This is precisely why Americans want us to debate these bills out in the open. This is why they want us to take our time until the true cost is known. And this is why they should have ample time to look at any proposed changes before Congress acts.
“We knew this proposal would raise taxes. We knew it would slash Medicare. Now we know it will raise health insurance premiums. Americans support reform. But higher premiums, higher taxes, and cutting Medicare — that’s not reform.”
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