ObamaCare is Wrong for Arizona and Wrong for America – Federal Hearing Tuesday
PHOENIX – “Arizona has a long and proud history of fighting the Washington, D.C. elite’s insatiable appetite for bigger government at the cost of States’ rights. The battle over the Affordable Care Act better known as “ObamaCare” is the latest round. Once again, the feds have gone too far.
“The cost of ObamaCare places unsustainable burdens on our federal government, our state government, and on American families. Further, the scheme is based on the unconstitutional mandate that every American buy health insurance. For these reasons, the State of Arizona, at my direction, has joined nineteen other states in challenging ObamaCare in federal court in the Northern District of Florida.
“Shortly after the states filed their suit, President Obama directed his counsel at the Department of Justice to file a motion to dismiss the case. The federal district court in Florida will hear arguments this Tuesday, September 14, on whether the states’ challenge to ObamaCare may move forward. I have no doubt that Arizona and the other states will ultimately prevail in striking down the most oppressive provisions of ObamaCare. The Act is simply unreasonable, unsustainable and unconstitutional.
“The costs of ObamaCare are indefensibly high and unsustainable. The current federal budget deficit will exceed $1.3 trillion. According to the Congressional Budget Office, the ten year deficit is another $6.2 trillion. This is not the time for America to be expanding entitlement programs, and thereby shackling our country to ever expanding debt obligations. Instead, the federal government should follow Arizona’s example and cut spending. America needs a long-term plan that will balance our federal budget and bring stability to our economy.
“In addition to burdening the federal budget, the Act unconstitutionally imposes staggering new costs and obligations on the states. It transforms Medicaid from a federal-state partnership to reimburse needy persons’ medical costs into a vast federally-mandated program to benefit millions of persons with incomes above the poverty line. While the states previously had discretion to manage their programs consistent with the needs of their citizens – indeed, Arizona’s own Medicaid program, AHCCCS, is a model nationwide – the Act now limits state flexibility and turns the states into an administrative arm of the federal government. It also compels the states to assume responsibility not only for cost reimbursement but for the provision of the healthcare services. These changes will add more than $1 billion per year in costs to an already overstrained state budget.
“ObamaCare also forces private insurance plans to expand coverage. While some of these changes may seem fair on the surface, ultimately the costs of these changes are borne by families. According to the Wall Street Journal, coverage changes demanded by ObamaCare could increase some premiums as much as 9 percent. Many Arizonans have already been told by their employers to expect high increases in their insurance premiums that will dramatically impact their household budgets.
“Ultimately, the law is unconstitutional. It represents an unprecedented intrusion on the sovereignty of the states and the freedom of their citizens. Congress is using its authority under the Commerce Clause to require citizens to purchase health insurance or face a stiff penalty. This overreaching application of the Commerce Clause cannot withstand constitutional scrutiny.
“Congress’s commerce power extends to regulation of activities having a substantial relation to interstate commerce, but it may not be used to compel individuals to enter a marketplace. Likewise, Congress’s power to tax does not authorize it to compel persons to buy specific insurance products. By enacting ObamaCare, Congress has seized powers denied it under the Tenth Amendment, in violation of the Constitution’s federalist structure and individual rights under the Fifth and Ninth Amendments.
“ObamaCare is a key point upon which Attorney General Goddard and I differ. I asked the Attorney General as the Arizona chief legal officer to join his colleagues in the other states in reviewing the constitutionality of the proposed law as it was making its way through Congress last year. He said no. Once it passed, I asked him to join the other states in challenging the law. He said no. In fact, Mr. Goddard recently argued that Arizona is “better off” with ObamaCare. Realizing that Congress has crossed the constitutional line and Attorney General Goddard was going to do nothing to protect Arizona’s citizens, I called the Arizona Legislature into special session to remove his authority to speak for the state on this matter. The Legislature, without pause, authorized me to join the multistate suit on behalf of the citizens of Arizona.
“In addition to ObamaCare’s constitutional deficiencies, citizens simply do not support the law’s mandate that they purchase insurance or incur federal penalties. Just weeks ago Missouri voters rejected any federal mandate to purchase health insurance with the measure passing with more than 70 percent of the vote. On November 2, 2010, Arizona citizens will vote on Proposition 106, which is similar to Missouri’s new law. I support Proposition 106 and have every reason to believe that Arizona voters will overwhelmingly pass this measure and, when they do, a clear message will be sent to the president and Congress that this type of overreaching by the federal government will no longer be tolerated.
“When these cases are ultimately decided in favor of the states on the merits, it will be a great day for the citizens who have the right to set their own health care policies and the states who have constitutionally guaranteed sovereignty to establish their own policies in the area of health care.”
Harry Mitchell said that he read the entire healthcare bill, all 2000+ pages of it and that he “…became a student again”. Well, now that we know what this behemoth of a bill is and in large part due to the fact that no one else read the bill, or that it was rammed through on a Sunday, with no debate on a close vote and with no time to read it, maybe Harry should have been a student of business or economics. Because, though he claims it will help seniors and small business and give consumers more choice, etc., we now know that in fact this terrible bill that takes over 1/6th of our economy and places it in the hands of the federal government will actually hurt seniors, deny them choice and stifle economic growth by hurting small business and raising taxes on the rest of us.
The budget deficit reduction aspect of the bill has been wiped out now that we have heard from the Congressional Budget Office (CBO) who says that the overhaul will cost an additional $115 billion more than first projected. And, never mind the gimmick of charging premiums for 4 years before the main benefits of the bill kick in. And, never mind that the bill is paid for in part by the feds taking over the entire student loan business (now, that makes a lot of sense and tell us again Harry how student loans are related to healthcare?). And never mind that the bill reduces Medicare payments (Medicare Advantage) by over $500 billion while the savings go into paying for this monstrosity!
Small business will receive a small tax credit, but the reality is that the tax credit is very complex and very limited because firms qualify based on the number of employees and average wages. The credit is phased out after six years, makes small business justify their credit through a series of cumbersome tests and actually only helps 1 out of 3 businesses because in order to qualify you must have less than 25 employees, provide health insurance and pay 50% of the cost of that insurance. And, after time, these same small businesses will pay additional fees (better known as taxes) that are levied on insurance companies but will be certainly passed along to their customers. This in turn means that we, the taxpayer and consumer will be spending, according to the Federal Policy Group an additional $500 per year. Adding insult to injury, the law also requires that all businesses issue IRS form 1099 to document every business transaction of $600 or more, which helps Congress raise even more billions of dollars. Just imagine the additional paperwork laid at the feet of any small business.
There is a small benefit for seniors—they will receive a small subsidy for the Medicare drug benefit, approximately $250. Though Medicare already has an unfunded liability of $38 Trillion, the $575 billion siphoned off of Medicare by freezing payments to the Medicare Advantage program does not go into paying for the current unfunded liability. It goes into paying for this trillion dollar “reform”! And since Medicare Advantage enrollments will be estimated to be cut in half (by the Secretary of Health and Human Services who needs to maintain a medical loss ratio of 85% as a benchmark and has the power to terminate enrollments in plans that miss this target), and given that there are serious gaps in Medicare coverage (like the absence of catastrophic protection), more seniors will have to purchase an additional health plan and pay two separate premiums (thank you AARP). Meanwhile the $250 rebate for seniors requires drug companies to provide a 50% discount on brand name prescriptions filled in the “donut hole”. Obamacare imposes additional fees on the sale of these brand name drugs, which of course gets passed onto the consumer. And, finally, in just a couple of years (2013), the new healthcare law eliminates the tax deductibility of the federal subsidy for employers who provide drug coverage benefits for seniors. Wonder what seniors will do then? They will pay more, while they see their retirement portfolios continuing to drop in value.
But higher payments are just the tip of the iceberg. Because of incentives that the federal government has placed upon productivity expectations that are near impossible to attain, some Medicare payment rates will grow more slowly to the providers furnishing the services to seniors. This insures that some service providers will go broke and will end their participation in the Medicare program which will jeopardize access to care for those seniors who are affected. Now, a senior on Medicare will by necessity need to be examining the “books” of their Medicare providers to make sure they are solvent and well run.
Finally, you seniors will pay more taxes. Higher taxes on drugs (next year) and medical devices (2013) will fall more on seniors than others because seniors use more of both. Even though there is a modest deduction on seniors adjusted gross income for medical expenses, that all goes away after 2016. And, seniors need to be careful about cracking open those IRA’s, because they will be expected to pay an additional 3.8% Medicare tax imposed on unearned or investment income in 2013. And just when you thought things could not get worse, in 2014 there will be a new federal premium tax applicable to Medicare Advantage plans as well as retirees in the Federal Employees Health Benefit Program. Likewise, starting in 2018 there will be a 40% excise tax on anyone who has a health plan valued at more than $10,220 for individuals or $27,500 for family coverage. Oh, and did we tell you that starting next year, your employers will have to report on your 1040 the total value of your healthcare plan?
Did I say finally? Well not quite. Here are a few more items to consider which sadly Harry and the party of Pelosi did not. We think it is a good thing to give health insurance coverage to those 30+ million who do not have it. However, had we simply paid for all 34 million and gave them a “Cadillac” plan of $10,000 per person, we are now talking about $340 Billion in total cost, not the $1-2 Trillion that this plan will eventually cost. And, with an additional 34 million people entering the system, there will be by necessity untold waiting periods and greater difficulty in accessing any kind of healthcare. And, did we mention that there is currently a doctor shortage and a nursing shortage; and a shortage of hospital beds, cadavers, teachers, schools, equipment and technicians to run the equipment? And guess how many courses our state medical schools teach in geriatric medicine—can you say one? And, did we mention that a vast majority of physicians are less optimistic about the future of medicine and that 66% would consider dropping out of any government program and that 53 percent would consider dropping out of insurance altogether? And did we mention that the Arizona 5th Congressional District responded with nearly 80+% already having insurance (which includes an awful lot of ASU students who do not have insurance)? And, that nearly 60% of the public want Congress to drop this bill and start over? Harry must not have asked his constituents. Or, maybe he did, but he did not like the answer.
Remember Greece? The country that is going broke, borrowing untold sums of money and very little likelihood that they will ever pay it back. Guess what the European community insisted they do as part of the terms of their borrowing–dropping their national healthcare program! Never mind that our deficit continues to rise and that our total debt is predicted to rise to the level currently close to Greece, 90% of GDP—Congressman Harry Mitchell says, “This package would strengthen Medicare for seniors…and make health insurance more accessible and affordable for individuals, families and small businesses (and) it would rein in costs and reduce the deficit.”
Harry would benefit from a lot more schooling.
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So, in other words, Brewer had a lot to SAY about it, but actually DID nothing. Just like border security, taxes, spending, etc.
Talk, talk, talk. Long winded, but she actually DOES nothing.
With all due respect, the Legislature crafts legislation, the governor signs it. THe governor does not have law-making authority, but does engage in lots of talk-talk to advocate the public/lawmakers to acting for a particular goal.