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House Democrat Draft Health “Reform” Legislation |
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A Government Takeover of Health Care |
JUNE 22, 2009
Background
On June 19, 2009, the Chairmen of the three House Committees with jurisdiction over health care legislation—Education and Labor Chairman George Miller (D-CA), Energy and Commerce Chairman Henry Waxman (D-CA), and Ways and Means Committee Chairman Charlie Rangel (D-NY)—introduced a joint "discussion draft" of health reform legislation. The Chairmen announced their intent to commence hearings in their respective Committees beginning June 23; mark-ups and floor action are likely for the July work period.
Executive Summary
At 852 pages, the released discussion draft sets the tone for a Washington takeover of the health care system—one defined by federal regulation, mandates, myriad new programs, and higher federal spending. The bill would ensure the heavy hand of federal bureaucrats over the United States health care system, levying costly new taxes on individuals and businesses who do not comply. Many Members may question how additional federal mandates and bureaucratic diktats raising costs appreciably for all Americans would make health care more “affordable.” Members may also note that while the bill’s provisions could cost as much as $2 trillion, few provisions in the draft would finance this bureaucrat-run program.
Highlights of major provisions likely to cause Member concern include:
- Creation of a government-run health plan that experts say could lead to as many as 120 million Americans losing their current coverage—a clear violation of any pledge to allow individuals to keep their current health plan;
- Insurance regulations that would raise costs for nearly all Americans, particularly young Americans, and confine choice of plans to those approved by a board of bureaucrats;
- New price controls on health insurance companies that provide perverse incentives to keep individuals sick rather than managing chronic disease, while impeding patient access to important services just because those services do not provide a direct clinical benefit;
- Additional federal mandates that would significantly erode the flexibility currently provided to employers—and could result in firms dropping coverage;
- Massive expansion of Medicaid—fully paid for by the federal government—to all individuals with incomes below 133 percent of the Federal Poverty Level ($29,326 for a family of four), replacing the existing private health coverage of millions of Americans with taxpayer-funded health care;
- Language opening employers operating group health plans to State law remedies and private causes of action—subjecting employers to review by 50 different State court rulings, thereby raising costs and encouraging more employers to drop their current health plans;
- Establishment of bureaucrat-run health Exchange that would de facto eliminate the private health insurance market outside the Exchange—and could evolve into a single-payer approach due to the Exchange’s ability to cannibalize existing employer plans;
- Creation of a new government board, the “Health Benefits Advisory Council,” that would empower federal bureaucrats to impose new mandates—including a mandate to obtain and provide abortion coverage—on individuals and insurance carriers;
- Taxation of individuals who do not purchase a level of health coverage that meets the diktats of a board of bureaucrats—including those who cannot afford the coverage options provided;
- New, job-killing taxes on employers who cannot afford to provide their workers health insurance, which could result in as many as 4.7 million employees losing their jobs;
- Penalties as high as $500,000 on employers who make honest mistakes when filing paperwork with the government health board—which would likely dissuade businesses from continuing to provide coverage, increasing the amount of health care provided through the bureaucrat-run Exchange;
- "Low-income" health insurance subsidies to a family of four making up to $88,200;
- Arbitrary and harmful cuts to popular Medicare Advantage plans that CBO estimates will result in more than 2 million seniors losing their current health coverage;
- New taxes on companies who exercise their First Amendment rights to advertise products; and
- Expanded price controls on pharmaceutical products that would discourage companies from producing life-saving breakthrough treatments.
Cost
A formal CBO score is not yet available. However, one of the bill's central provisions—"low-income" subsidies for families making more than $88,000 per year—echoes the initial proposal prepared by Senate Finance Committee Chairman Baucus, which press coverage widely reported was estimated by CBO to cost $1.6 trillion over ten years. Coupled with a more generous Medicaid expansion and physician reimbursement provisions—which the Democrat majority reportedly does not intend to pay for—and the cost of the bill should easily exceed the $1 trillion estimate publicly cited by Ways and Means Committee Chairman Rangel—and likely could double that number.
Related Media
| Republican Leadership Stakeout on Health Care and Jobs Nov. 17, 2009 | Press Conferences  |
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| 11/14/09 Weekly Republican Address Mark Kirk Nov. 14, 2009 | Weekly Republican AddressRep. Mark Kirk (R-IL) delivers the Weekly Republican Address. |
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| 10/31/09 Weekly Republican Address: Republican Leader John Boehner (R-OH) Oct. 30, 2009 | Weekly Republican Address |
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| 10/17/09 Weekly Republican Address: Rep. Kevin Brady (R-TX) Oct. 16, 2009 | Weekly Republican AddressRep. Brady: Real economic growth starts when the people who have taken the hardest hit in this recession -- our small businesses -- get back to creating jobs." |
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| 10/14/09 Republican Leadership Stakeout Oct. 14, 2009 | Press ConferencesHouse Republicans discuss the economy and health care after their weekly conference meeting. |
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| 10/7/09 Republican Leadership Stakeout Oct. 07, 2009 | Press ConferencesHouse Republicans discuss Afghanistan, the economy, and health care after their weekly conference meeting. |
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| Weekly Republican Address: Rep. Candice Miller (R-MI) Oct. 03, 2009 | Weekly Republican AddressRep. Miller: "Republicans hope that the President and Speaker Pelosi will put aside their job-killing agenda and help promote policies to get Americans working again." |
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| 9/30/09 Republican Leadership Stakeout Sep. 30, 2009 | Press ConferencesHouse Republican leaders discuss the jobs, the economy, and health care after their weekly conference meeting. |
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| 9/23/09 Republican Leadership Stakeout Sep. 23, 2009 | Press ConferencesHouse Republican leaders discuss health care after their weekly conference meeting. |
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| Weekly Republican Address: Rep. Sue Myrick (R-NC) Sep. 18, 2009 | Weekly Republican AddressRep. Sue Myrick (R-NC) delivers the Weekly Republican Address on health care. "These so-called health care reform bills have different names: a public option, a co-op, a trigger. Make no mistake, these are all gateways to government-run health care." |
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| 7/14/09 Republican Leadership Stakeout Jul. 14, 2009 | Press ConferencesHouse Republican leaders discuss the economy and health care. |
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| 6/24/09 Republican Leadership Stakeout Jun. 24, 2009 | Press ConferencesHouse Republican Leaders are joined by Gov. Jim Douglas (R-VT) and Gov. Mike Rounds (R-SD) as they discuss health care and energy. |
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| Weekly Republican Address: Rep. Charles Boustany (R-LA) May. 16, 2009 | Weekly Republican AddressRep. Charles Boustany (R-LA), a member of the Republican Health Care Solutions Group, discusses working with President Obama to ensure that every American has access to affordable, high-quality health coverage. |
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| Weekly Republican Address: Rep. Roy Blunt (R-MO) Mar. 06, 2009 | Weekly Republican AddressRep. Roy Blunt (R-MO) delivers the Weekly Republican Address on Republican's commitment to developing new and innovative solutions to fix our nation's health care system, while making sure we keep what works. |
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May 01, 2009
Leading House Democrat Admits That Government-Run Health Care Will Put Private Health Care Out of Business
http://www.breitbart.tv/html/330913.html Rep. Jan Schakowsky (D-IL): "And next to me was a guy from the insurance company,...
April 03, 2009
Question and Answer: Medicare and the Republican Budget
"The real problem with our long-term deficit actually has to do with our entitlement obligations...The big problem is Medicare, which...
March 23, 2009
Jeff Flake: Uncensored
Rep. Jeff Flake (AZ) gets a few words in at the American Spectator this morning, offering insight from the...
March 09, 2009
Investor's Business Daily: More Money Won't Assure Quality Care
"What it's supposed to do for people doesn't get done in reality." The speaker criticizing this government program...
March 05, 2009
Obama vs. Obama - Health Care
President Obama said government-run health care was “extreme” and “wrong” but… Then-Candidate Obama said government- run health care was...
March 04, 2009
Ten Facts About President Obama’s Health Care Proposals
President Obama's budget proposal includes nearly $1 trillion in new health care spending-a $634 billion reserve fund as a...
February 26, 2009
Information On President Obama’s Health Care Budget
President Obama's budget includes nearly $1 trillion in new health spending-a $634 billion reserve fund as a "down payment"...
February 23, 2009
Redstate: Medicaid For Millionaires By Rep. Cliff Stearns
"We shouldn't have to do that, because they should know better." So said President Obama in explaining why...
February 10, 2009
Question and Answer: Government-rationed Health Care
In light of the inclusion of $1.1 billion in the Democrat "stimulus" legislation for the Agency for Healthcare Research...
February 04, 2009
SCHIP Principles
In anticipation of a potential vote to reauthorize and expand the State Children’s Health Insurance Program (SCHIP), the Republican...
January 14, 2009
Pence Supports Healthcare for Needy Children
Congressman Mike Pence (R-IN), Chairman of the House Republican Conference, issued the following statement today regarding House consideration of...
