SOTU: ObamaCare Raises Costs

Despite The President’s Claims About His New Law, Health Costs Are Skyrocketing

PRESIDENT OBAMA: “…the Affordable Care Act is helping to slow the growth of health care costs.” (President Obama, State Of The Union Address, 2/12/13)

ObamaCare Raises Taxpayer Costs: $580 Billion

CBO: “…spending is projected to grow rapidly when provisions of the Affordable Care Act are fully implemented by mid-decade, reaching 6.2 percent of GDP in 2023” (“The Budget And Economic Outlook: Fiscal Years 2013 To 2023,” Congressional Budget Office, P. 23, 2/5/13)

• “In response to a request, CBO and JCT have estimated the impact of H.R. 6079 [Repeal of Obamacare Act] on the federal budgetary commitment to health care. According to that estimate, enacting H.R. 6079 [Repeal of Obamacare Act] would reduce the federal budgetary commitment to health care by $580 billion, on net, over the 2013–2022 period.” (Edward ‘Sandy’ Davis, Letter To Hill Staff, 8/1/12)

CBO: The Law Will Increase Premiums On Families By $2,100 Per Year

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…” (Emphasis In Original; CBO Director Douglas Elmendorf, Letter To Sen. Bayh, P. 6, 11/30/09)

“The federal health care law could nearly triple premiums for some young and healthy men, according to a forthcoming survey… found that if the law’s insurance rules were in force, the premium for a relatively bare-bones policy for a 27-year-old male nonsmoker on the individual market would be nearly 190 percent higher.” (“Premium Price Shock Could Fuel Some ACA Foes,” Politico, 2/4/13)

• “Now comes the most ominous sign yet health insurance premiums are going way up: Most health insurers in the individual market have stopped guaranteeing a person’s premiums for a year.” (“The Most Ominous Sign Yet Health Insurance Premiums Will Explode,” Forbes, 1/30/13)

ObamaCare Raises Business Costs: Layoffs, Fewer Jobs

QUESTION: “In your estimation, the health care law would reduce employment by 800,000… DOUGLAS ELMENDORF, CBO Director: “Yes… there would be a reduction of 800,000 workers.” (U.S. House Of Representatives, Budget Committee, Hearing, 2/10/11)

• QUESTION: “The last question is, it's been argued and was argued here yesterday with the chairman, that the new health care law will create jobs and increase labor force participation. But if I recall from your analysis, it was quite the opposite. Is that not the case?” DOUGLAS ELMENDORF, CBO Director: “Yes.” (U.S. House Of Representatives, Budget Committee, Hearing, 2/10/11)

“Medical supply giant Stryker is the latest company to announce job cuts in anticipation of coming costs associated with ObamaCare, even though the man who inherited a fortune from the company's founder is a fan. The company will cut 1,170 jobs, or five percent of its worldwide workforce, despite the fact that the founder's grandson was one of the largest contributors to President Obama’s re-election campaign.” (“Medical Giant Stryker Cuts 1,170 Jobs, Citing Obamacare,” Fox News, 11/16/12)

“This month, Welch Allyn—a maker of stethoscopes and blood-pressure cuffs—announced that it will lay off 10% of its global workforce over the next three years, but all of the jobs being cut are in the U.S.” (“Evan Bayh: ObamaCare's Tax Raid On Medical Devices,” The Wall Street Journal, 9/27/12)

“‘I don't know what secret [the politicians] know, where they just assume we can write them a check,’ said Sam Facchini, owner of Metro Pizza in Las Vegas. ‘We can't pay for this. Most of us [restaurant owners] operate on a thin margin and trying to stay in compliance [with the law] will make things much tighter.’ … Metro Pizza employs approximately 200 workers in Nevada, which could mean upwards of $400,000 worth of penalties, should the company not comply with the law.” (“Nevada Restaurant Owners On Obamacare: 'We Can't Pay For This,'” Nevada Journal, 11/26/12)

For Virginia restaurateur ‘cost of the penalty could put him out of business.’ “John Motta, who owns 10 Dunkin' Donuts in New Hampshire and 10 in Virginia, said he offers workers a choice of two insurance plans and pays half the premiums. He is weighing whether to drop coverage but said the cost of the penalty could put him out of business in Virginia, where his stores are struggling.” (“Small Firms See Pain In Health Law,” The Wall Street Journal, 8/1/12)

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