FACT CHECKING THE PRESIDENT’S HEALTH CARE REMARKS

Fact Checking Claims That The Dem Bill Will, “Reduce The Costs Of Health Care,” “Families Will Save On Their Premiums,” “Businesses … Will Save,” And It Will “Strengthen Medicare”
PRESIDENT OBAMA: “We Agree On Reforms That Will Finally Reduce The Costs Of Health Care. Families Will Save On Their Premiums. Businesses That Will See Their Costs Rise If We Do Nothing Will Save Money Now And In The Future. This Plan Will Strengthen Medicare And Extend The Life Of That Program.” (President Obama, Remarks, 12/15/09)

FACT CHECK: “REDUCE THE COSTS OF HEALTH CARE”
Health Care Costs Increase

CHRISTINA ROMER, Chair Of The President’s Council Of Economic Advisers: “Of Course, That’s Going To Up The Level Of Health Care Spending” “We are going to be expanding coverage to some 30 million Americans. And, of course, that's going to up the level of health-care spending. You can't do that and not spend more.” (“White House Says Reform Would Slow Growth Of Health-Care Costs,” The Washington Post, 12/14/09)

CMS: “This Bill Would Increase [Health Expenditures] By An Estimated Total Of $234 Billion”
CMS: “…We Estimate That Total National Health Expenditures Under This Bill Would Increase By An Estimated Total Of $234 Billion (0.7 Percent) During Calendar Years 2010-2019…” (“Estimated Financial Effects Of The ‘Patient Protection And Affordable Care Act Of 2009,’ As Proposed By The Senate Majority Leader On November 18, 2009,” Centers For Medicare & Medicaid Services, P.4, 12/10/09)

CBO: SENATE BILL INCREASES HEALTH CARE COSTS
CBO: “Under The Legislation, Federal Outlays For Health Care Would Increase During The 2010–2019 Period, As Would The Federal Budgetary Commitment To Health Care. The net increase in that commitment would be about $160 billion over 10 years, driven primarily by the $848 billion gross cost of the coverage expansions (including increases in both outlays and tax credits).” (CBO Director Doug Elmendorf, Letter To Sen. Harry Reid, 11/18/09, P. 16)

FACT CHECK: “FAMILIES WILL SAVE ON THEIR PREMIUMS”
Premiums Increase

SEN. BERNIE SANDERS (I-VT): “Can I Sit Up Here Or Stand Here With A Straight Face And Say, We Have Got Strong Cost-Containment Provisions In This Legislation? That If You're An Ordinary Person Who Has Employer-Based Health Care, That Your Premiums Are Not Going To Go Up In The Next Eight Years Based On What’s In This Bill? I Can't Say That. It’s Just Not Accurate.” (Sen. Bernie Sanders, Floor Remarks, 12/14/09)

SEN. MAX BAUCUS (D-MT): “So It Is True That Some Persons In The So-Called Nongroup Market In The Year 2016, Would Find Their Premiums Would Go Up Without Subsidies. And I Think That Figure Nets Out To About 7%.” (Sen. Baucus, Floor Remarks, 12/7/09)

CBO: “Average Premiums Per Policy In The Nongroup Market In 2016 Would Be Roughly $5,800 For Single Policies And $15,200 For Family Policies Under The Proposal, Compared With Roughly $5,500 For Single Policies And $13,100 For Family Policies Under Current Law. The Weighted Average Of The Differences In Those Amounts Equals The Change Of 10 Percent To 13 Percent In The Average Premium Per Person Summarized Above…” (Emphasis In Original; CBO Director Douglas Elmendorf, Letter To Sen. Bayh, P. 6, 11/30/09)

·         WASHINGTON POST: “As A Result, For The 32 Million People In The Individual Market, Premiums Would Be 10 Percent To 13 Percent Higher, On Average, Than Under Current Law, climbing to $5,800 a year for individuals and $15,200 for family coverage.” (“Senate Health Bill Gets A Boost,” The Washington Post, 12/1/09)

FACT CHECK: “BUSINESSES … WILL SAVE MONEY NOW AND IN THE FUTURE”
A Half Trillion Dollars In Taxes

$149 Billion Tax Increase On Private Health Insurance Plans
 “Excise Tax On High-Premium Plans… 2010-2019… 149 [Billion Dollars].” (CBO Director Doug Elmendorf, Letter To Sen. Harry Reid, 11/18/09, P. 6)

More Than $100 Billion In Taxes & Fees On The Health Care Industry;
“Fees On Certain Manufacturers And Insurers… 2010-2019… 102 [Billion Dollars].” (CBO Director Doug Elmendorf, Letter To Sen. Harry Reid, 11/18/09, P. 6)

CBO: “The Legislation Would Impose Several New Fees On Firms In The Health Sector. New Fees Would Be Imposed On Providers Of Health Insurance And On Manufacturers And Importers Of Medical Devices. Both Of Those Fees Would Be Largely Passed Through To Consumers In The Form Of Higher Premiums For Private Coverage. … since large firms are more likely to self-insure, that fee would result in smaller percentage increases in average premiums for large firms than it would for small firms and for nongroup coverage.” (CBO Director Douglas Elmendorf, Letter To Sen. Bayh, P. 15-16, 11/30/09)

$54 Billion Medicare Payroll Tax Increase: Half Paid Directly By Businesses
“Senate Democratic Aides Said The Payroll Tax Increase Would Raise $54 Billion Over 10 Years.” (“Senate Health Plan Seeks To Add Coverage To 31 Million,” The New York Times, 11/19/09)

“Under Current Law, Employers And Employees Each Pay A Tax Equal To 1.45 Percent Of Wages. Mr. Reid Would Increase The Rate To 1.95 Percent For Individuals With Annual Incomes Over $200,000 And Couples Over $250,000.” (“Senate Health Plan Seeks To Add Coverage To 31 Million,” The New York Times, 11/19/09)

“Economists And Politicians Pointed Out Several Possible Objections To Mr. Reid’s Proposal. It Does Nothing To Slow The Growth Of Health Spending, As The Tax On High-Cost Insurance Would. And, As The Congressional Budget Office Pointed Out Recently, ‘Higher Tax Rates On Earnings Reduce People’s Incentive To Work.’” (“Reid Mulls Medicare Tax Increase For High Earners,” The New York Times, 11/13/09)

$36 Billion In Fines: Half Paid Directly By Businesses
“Penalty Payments By Employers And Uninsured Individuals… 2010-2019… 36 [Billion Dollars].” (CBO Director Doug Elmendorf, Letter To Sen. Harry Reid, 11/18/09, P. 6)

COMPANIES THAT DON’T PROVIDE INSURANCE FINED $750 PER WORKER
CBO: “Firms With More Than 50 Workers That Did Not Offer Coverage Would Have To Pay A Penalty Of $750 For Each Full-Time Worker If Any Of Their Workers Obtained Subsidized Coverage Through The Insurance Exchanges; That Dollar Amount Would Be Indexed.” (CBO Director Doug Elmendorf, Letter To Sen. Harry Reid, 11/18/09, P. 7)

CBO: “Requiring Employers To Offer Health Insurance—Or Pay A Fee If They Do Not—Is Likely To Reduce Employment…”(“Effects Of Changes To The Health Insurance System On Labor Markets,” CBO, 7/14/09)

FACT CHECK: “THIS PLAN WILL STRENGTHEN MEDICARE”
A Half Trillion Dollars In Medicare Cuts

CBO: Medicare Cuts Could “Reduce Access To Care Or Diminish The Quality Of Care.” (CBO Director Doug Elmendorf, Letter To Sen. Harry Reid, 11/18/09, P. 1, 17)

$135 BILLION IN CUTS TO HOSPITALS SERVING SENIORS(CBO, E-mail To Senate Leadership Staff, 11/20/09)

$120 BILLION IN CUTS TO MEDICARE ADVANTAGE

“Setting Payment Rates In The Medicare Advantage Program… $118 Billion.” “Setting payment rates in the Medicare Advantage program on the basis of the average of the bids submitted by Medicare Advantage plans in each market, yielding savings of an estimated $118 billion (before interactions) over the 2010– 2019 period.” (CBO Director Doug Elmendorf, Letter To Sen. Harry Reid, 11/18/09, P. 10)

·         “Medicare Advantage Payment… 2010-2019… -118.1 [Billion Dollars].” (CBO Director Doug Elmendorf, Letter To Sen. Harry Reid, 11/18/09, p. 28)

1.9 Billion Cut To Medicare Advantage Resulting From A Coding Intensity Adjustment: “Subtitle B—Improving Medicare for Patients and Providers; PART III—IMPROVING PAYMENT ACCURACY; Subtitle C—Provisions Relating to Part C; 3203; Application of Coding Intensity Adjustment… 2010-2019… -1.9 [Billion Dollars].” (CBO Director Doug Elmendorf, Letter To Sen. Harry Reid, 11/18/09, P. 28)

MORE THAN $40 BILLION CUT FROM HOME HEALTH AGENCIES(CBO, E-mail To Senate Leadership Staff, 11/20/09)

NEARLY $15 BILLION IN CUTS TO NURSING HOMES(CBO, E-mail To Senate Leadership Staff, 11/20/09)

NEARLY $8 BILLION FROM HOSPICES (CBO, E-mail To Senate Leadership Staff, 11/20/09)

President Asks Senators To “Take A Careful Look At What’s In The Bill” But Senators Of Both Parties Have Been Kept “In The Dark”

PRESIDENT OBAMA: “I Think It’s Important For Every Single Member Of The Senate To Take A Careful Look At What’s In The Bill.” (President Obama, Remarks, 12/15/09)

Democrats Say They’re “In The Dark,” “Not Allowed To Talk,” “Don’t Know,” Have Seen “Nothing Very Specific” And Received “No Explanation” Of What’s In The Bill

SEN. DICK DURBIN (D-IL): “I Would Say To The Senator From Arizona, That I’m In The Dark Almost As Much As He Is. And I’m In The Leadership.” (Sen. Dick Durbin, Floor Remarks, 12/11/09)

SEN. CHUCK SCHUMER (D-NY): “I Can’t Say What There Is, Because We’re Not Allowed To Talk About What’s Submitted To CBO.” (“Wary Senators Await CBO Report,” CQ, 12/13/09)

SEN. BILL NELSON (D-FL): “I Don’t Know What The Deal Is.”  (“Senate Democrats Largely Support Health-Care Deal That Drops Public Option,” The Washington Post, 12/10/09)

SEN. MARY LANDRIEU (D-LA): “There’s No Specific Compromise. There Were Discussions. … Until The Package That Was Sent Is Scored, We Really Don’t Even Know What’s In It.” (“Confusion Over ‘Deal’ Continues,” Roll Call, 12/10/09)

SEN. BOB CASEY (D-PA): “Any Big Agreement Is Progress … Even If We Do Not Know Any Of The Details.” (“Senate Democrats See Room For Hope On Health Care Bill,” The New York Times, 12/10/09)

SEN. DIANNE FEINSTEIN (D-CA): “There Was No Explanation. It Was Sort Of Go Team, Go.” (“Senate Democrats See Room For Hope On Health Care Bill,” The New York Times, 12/10/09)

SEN. BEN NELSON (D-NE): “General Concepts, But Nothing Very Specific At All.” (“Senate Democrats See Room For Hope On Health Care Bill,” The New York Times, 12/10/09)

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