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Senate Health Bill: A Trillion-Dollar Federal Takeover

A new draft forwarded by Kennedy and Dodd spells obvious disaster for the American worker. (Get details on PJTV's virtual health care forum here.)

by
Jeff Emanuel

Bio

July 18, 2009 - 12:36 am
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Among its myriad negative points — which include tax hikes, individual mandates, and billions in locally-distributed pork — a health care overhaul bill passed Tuesday by the Senate Health, Education, Labor, and Pensions (HELP) Committee contains a two-pronged mechanism for increasing government’s already enormous footprint within the health care market and for driving private insurance into the ground.

When the first public draft of the Orwellian-titled “American Health Choices Act” was released at the beginning of June, it contained language mandating that employers with 25 or more workers offer health insurance to their employees or face a federal fine. The level of that fine, as with almost every other penalty and tax increase provided for in the bill, was to be left to the discretion of the secretary of Health and Human Services.

This new ability to impose taxes and levy fines of an amount entirely at her discretion would be a breathtaking expansion of the appointed HHS secretary’s power.

When an evaluation by the nonpartisan Congressional Budget Office found the AHCA’s net cost — that which would have to be spent above built-in revenue increases and offsets — to be around $1.6 trillion (a number that many experts and outside evaluators find to be reminiscent of the Medicare forecasts at its inception, which put the cost of the now $37 trillion program at less than $10 million), while only extending health coverage to approximately a third of the 45 million American uninsured, public backlash was significant enough that the HELP committee members writing the bill took steps to bring that projected cost down from a trillion and a half dollars into the hundreds-of-billions range.

Sens. Edward Kennedy (D-MA) and Chris Dodd (D-CT), the chief architects of the AHCA, did this in two ways. First, they took over one of the jobs they had delegated upward to the secretary of HHS — establishing the dollar amount employers with 25 or more workers would be penalized for not offering health insurance. They set these penalties at $750 annually per full-time employee and at $375 annually per part-time worker.

This dollar amount is significant for two reasons. First, small businesses, which employ almost half of working Americans according to the National Small Business Association (NSBA), often don’t provide health insurance to employees because they simply cannot afford to do so. Adding $750 per worker to those cash-strapped businesses’ overhead costs will make cuts somewhere else necessary.

Whether those savings come in the form of employee pay cuts, freezes on hiring, or layoffs, workers are the ones who will feel the pain from this attempt by Washington to “help” them by penalizing their employers.

Second, larger employers, which currently shell out an average of $4,704 a year for individual workers and $12,680 for those with dependents (numbers courtesy of the Kaiser Family Foundation), will see the option of a $750 annual fine as an incredibly desirable alternative to continuing to pay thousands of dollars for each employee’s health insurance.

By dropping the coverage they currently offer workers, larger employers will be able to save anywhere between four and twelve thousand dollars on health benefits alone — a no-brainer of a decision.

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32 Comments, 32 Threads

  1. 1. Maybe, maybe not

    Obama healthcare.
    Obama takeover of housing.
    Obama takeover of the lending industry.
    Obama scaring and taking over Wall Street.
    Obama takeover of Chrysler and General Motors.
    Obama giving amnesty to the illegal Hispanics.
    Obama giving tons and tons of welfare to blacks.
    Obama cutting back on our nation’s defense.
    Obama insulting the British.
    Obama telling Israel to take a hike.
    Obama forever in front of the cameras talking.

    Most, if not all of this Obama crap is destroying our country; ripping it apart piece, by piece. Millions of people have already lost their jobs and their homes; their future is dismal. Tea Parties across the nation. Everyday citizen Republicans and Democrats alike are nearing, or already at the threshold of outright civil revolt; every last ounce of their anger and frustration aimed straight at Obama’s face.

    Why in the world aren’t any of our elected representatives standing up against the insanity of Obama?

    Obama, with an arrogant, cocky smirk ordering Congress around like a two-bit dictator that is 100% certain that there is nothing that they can do to stop him.

    Maybe so; maybe not. Factoring in the political turmoil Obama has already created, if they keep on giving Obama everything he demands and wants it will guarantee that he is a one-term President with the worst record in our history..

    Obama will have “puffed” himself out of the picture permanently.

    A little bit off topic; still just a thought I haven’t heard much about.

  2. 2. don

    Time to re-open debtors prisons, since the rapidly growing political movement to impoverish the middle class and politically compromised is gaining steam we need a place to punish and re-educate these ignorant class enemies. It is time that all of us realize the importance and pre-eminence of the state and it’s leadership, and for those who refuse to understand this new reality . . . we need establish these places of elucidation and hard work. Joining our brothers across the seas to expunge the lies that are the concepts of faith, values and individuality we must embrace the concept of universal potential and service to the state (because the state takes care of us, cradle, to when it determines it is time for us to leave the stage).

  3. 3. DaveK

    The numbers from Kaiser bring to mind the biggest problem with the current health-insurance system. That is, that the vast majority of workers have absolutely no idea how much is paid for their “almost free” health care. If every business said “Here! This is how much money we spend for your health care. You can continue with the plan as it is, or we can offer some lower-level plans that don’t cost so much, but you pay a larger deductible. If you take the lower-level plan, we’ll add the difference to your salary. Tax-wise, it doesn’t make any difference to us. Just remember, however, if you get sick you’ll have to pay the bigger deductible and co-pay.”

    If current health insurance worked like that for most folks, they’d take the bigger deductible, pay the taxes on the “bonus” to their salary, and be a lot more choosy about what optional procedures and tests they elect to have done.

    Just my $.02

  4. 4. Mike

    The public option could hardly be worse than Anthem Blue Cross.

  5. 5. "progressive"watch

    My opinion,from past observation of government predicction on their program costs,is that none of the predictions of the cost of ObamaCare is remotely close to high enough. As for worrying about the havoc that it might cause,a majority of the ObamaCare supporters probably welcome it.

  6. 6. pelaut

    Living outside the U.S. I nonetheless pay for Medicare every month and in the doubling of FICA because I’m self-employed. I receive NOTHING from Medicare simply because I’m not there, yet I pay DOUBLE!

    On the other hand, as Obama would say, I can get opinions from five different specialiasts for only $150. And an MRI for $120 or a CAT scan for $80, x-ray less than $20, from businesses making a profit — “profit” is a dirty word for the grafters Dodd and Kennedy and Frank and every one of the 532 others that never had a job, wrote a paycheck or pondered an honest thought.

  7. 7. kazooskibum

    The Democrat Party is a criminal enterprise.

  8. 8. DaveinPhoenix

    From Riehl World View:

    http://www.riehlworldview.com/carnivorous_conservative/

    “On Tuesday, the Senate health committee voted 12-11 in favor of a two-page amendment courtesy of Republican Tom Coburn that would require all Members and their staffs to enroll in any new government-run health plan. Yet all Democrats — with the exceptions of acting chairman Chris Dodd, Barbara Mikulski and Ted Kennedy via proxy — voted nay.”

    - So, while I go without health care coverage (which is fine with me, I take good care of my self), I pay for the awesome coverage that these creeps enjoy so that they can decline the disasterous coverage that they offer the rest of us.

    - The servants have not only taken over the kitchen, they’ve taken over the house, and are working at taking over the entire neighborhood. I hope Americans remember in 2010 and 2012 who the servants are, and who are the served. These are our representatives. Their turn to join the unemployed………

  9. 9. JED

    “Shovel ready” becomes code for digging the grave of capitalism and free enterprise along with small businesses and discretionary income. How many jobs will this federal take over create?
    Universal health care has as much to do with health as cap-and-trade has to do with good ecology. Both are being sold on the fear the future express.
    The speed at which these bills are being shoveled at us, while sinking under the deficit and unemployment should be warning enough that we are being swindled. The American tax payer doesn’t get it until next April 15th. The bill is in the mail. Will they, like the Californians, accept an IOU on their refunds? Say goodbye to the discretionary income part of the American lifestyle.

  10. 10. John Cooper

    Along with about 250 other folks, I attended the Asheville, NC protest against ObamaCare yesterday at the offices of U.S. Rep. Heath Shuler [D-NC-11th]. Although notified weeks in advance that a few people would like to speak with him, Shuler was nowhere to be found. His staff refused to accept our petition opposing the Bill, and had nothing to say other than “No comment.” (Rep. Heath Shuler, man of the people…)

    After being snubbed by Shuler, we all spread out with our signs on the four corners of the intersection on heavily-traveled Biltmore Ave. The ratio of honks-and-thumbs-ups to extended-middle-fingers was over twenty-to-one.

  11. 11. WhyamInotsurprised?

    Wow, and Bernie Madoff is demonized. The democrats make him look like a piker!

    How many years did it take Bernie to cheat billions from his clients? And now look at the Dem controlled congress. Trillions, in one year, in plain view, recorded for history, with smiles all around.

    Just one Obamagasm after another. I can’t wait until they are all found in their offices having suffered the fate of David Carradine, who heightened his sexual satisfaction by self strangulation. These people cannot control themselves.

  12. 12. keithacita

    of course our brave and courageous legislators and members of the executive branch will have their own separate and unequal medical plan.

  13. 13. keithacita

    they are better than the rest of us and deserve such treatment.

  14. 14. Alana

    Of course it’s an intentional takeover.

  15. 15. dallasdan

    It won’t be long before reasonable citizens take to the streets in very large numbers to express their outrage at this administration’s rush to socialism. I’m not kidding, and I will be among them.

  16. 16. VT

    Did you know currently in both the House and Senate versions of the Health bill there is a provision which requires that within 5 years of passage, that those with current employer supplied health benefits change to a “government approved” plan which will define coverage and benefits, and that if you buy your own health insurance, that mandate is even shorter. There is another provision which kicks in requiring you change to a government approved plan, if there is a change in benefits or co-pays for your current plan.

    in addition you will need to see a ‘gate keeper” prior to seeking some forms of treatment.

    So much for we’ll be able to keep our current care if we like it.

  17. 17. myth buster

    Not all congressmen have never had a job in the private sector. Several members of both chambers are successful doctors and businessmen (nearly all of whom are Republicans).

  18. 18. jharp

    “- So, while I go without health care coverage (which is fine with me, I take good care of my self)”

    Without a doubt the most ignorant and deceptive bunch a BS I have seen in quite some time.

    Why don’t you call what it is. You are relying on the taxpayers to take care of you if an unexpected health tragedy befalls you.

    You make me sick. You are an ignorant vile human being.

  19. The health care is one of the most important goal for any government, so the problem is not the amount of money requested … the real problem is how it will be spent

  20. 20. The Skizzerd of Waz

    I’m no expert on this Health Care Bill, and I’ll even admit that I didn’t read the thing. (I guess I’m in good company in that regard?) I’m a conservative but I’m not a doctrinaire party apparatchik, and I do think health care can and should be provided for those who’ve slipped through the net and find themselves on the short end of the Wellness stick.
    We’re the richest, most powerful nation in the history of humanity for crying out loud! It sure ain’t going to hasten Armeggedon one bit if we scrap a couple of fleet carriers or a few F-22′s, and build & staff some more medical centers plus fund them to the extent that no one is ever turned away for lack of money.
    If we can’t even provide for our own, what in the hell are we doing playing global cop and/or Santa Clause, huh?

  21. 21. Tarantula

    One of the big reasons health care is so expensive is because doctors and hospitals pay huge malpractice insurance premiums instigated by ambulance chasing slip-and-fall lawyers like the former John Edwards. When Maobama went before the AMA one of their main agenda items was tort reform. When the messiah was against that, he got boo’d. Of course he’s against tort reform. The trial lawyers union is one of his biggest supporters. Then the skank Nancy Pelosi gets up there and says she has “the support of the doctors, the nurses, and, the American people.” No, she does not. Poll after poll are showing beyond doubt the American people are rejecting this…

  22. 22. fear obama

    We now have millions of veterans that have dropped their Medicare insurance payments and are taking free trips to their local VA -
    Bill Clinton passed that bill.

    The local VA tries hard to keep up but a doctor told me they cant- the system is becoming overwhelmed.
    They have already stopped dental care and other services.

    I called 3 weeks ago for a foot injury and will be seen Aug. 3rd. Over a month to drive 75 miles to see a doctor- Glad it wasn’t a rattlesnake bite.

    But Hey, its free.

    Hope you enjoy Socialized medicine!

    TAKE A NUMBER.

  23. 23. jharp

    fear obama:

    “But Hey, its free.”

    “Hope you enjoy Socialized medicine!”

    It’s not free. And it’s not Socialized medicine.

    Any other moronic comments?

  24. 24. jharp

    Tarantula:

    “One of the big reasons health care is so expensive is because doctors and hospitals pay huge malpractice insurance premiums”

    And another moronic post.

    Malpractice insurance amounts to about 1% of health care costs.

  25. 25. Fred Beloit

    Skizzard writes: “…I’m a conservative but I’m not a doctrinaire party apparatchik…”
    W. C. Fields is strolling along a hotel lobby and meets a cute little girl:
    WCF: Why what a charming little girl. How old are you, dear?
    LG: I’m five years old.
    WCF: Isn’t that nice. Will you sing a song for me?
    LG: If you give me a dollar I will.
    WCF: Your not five years old. Get out of here.

    And Skizzard ain’t no conservative.

  26. 26. scituate_tgr

    Kennedy and Dodd are obvious disasters for America.

  27. 27. crawdaddy

    If Dodd, who we are hoping is not re-elected, and Kennedy, who is for all intent and purpose not able to decide when to fart, but was really good at ending Mary Jo Kopechne’s life july 18, 1969…(do you think he celebrates this date every year?) wellll….if they love this plan, then they should adopt it for their family . they need to live by the plans they pass . How could they know, they haven’t read it!!! That’s the whole kicker for me.

    I have no idea what the plan says….because no one has read it and it is like the stimulus pkg,” just pass the thing”, the public doesn’t care…or so they think.

    We need to have a law passed that NO BILL is every passed until it is read and discussed by the people we send to Washington. And they need to be held responsible to the “people back home” that put them there.

  28. 28. Steve

    Actually all current democrats in whatever position they hold are bad for this country vote them out in 2010 and let the ones you help elect know that you expect impeachment of Obama to be a top priority, not spending more money on stupid new bills, and that they should only pass legislation that cuts taxes and possibly even introduces a fair tax or a flat rate tax tha everyone pays or at least some that makes sense.

  29. 29. jharp

    Steve:

    “Actually all current democrats in whatever position they hold are bad for this country vote them out in 2010 and let the ones you help elect know that you expect impeachment of Obama to be a top priority, not spending more money on stupid new bills, and that they should only pass legislation that cuts taxes and possibly even introduces a fair tax or a flat rate tax tha everyone pays or at least some that makes sense.”

    Don’t know what else to say about a post like that other than I am embarrassed to even be here.

    Geez. Steve. Think at least a little bit.

  30. 30. The Skizzerd of Waz

    25. Fred Beloit:

    Correction, I ain’t no Libertarian.

    WC Fields was an misanthropic old drunkard who turned his guts into tissue paper and died in a hospital with blood pouring out of his a$$hole. Other than the fact he used hospitals, I fail to see point in using one of his old routines as a rebuttal that illustrates squat about my brilliant observations.

    PS: Even though he was an old wino he was still funny as hell IMHO.

  31. 31. Fred Beloit

    Hahaha. Great response Scuzz. You are someone who starts by claiming to be a conservative and continues by saying the opposite of what a conservative would say:
    “…I do think health care can and should be provided for those who’ve slipped through the net and find themselves on the short end of the Wellness stick.
    We’re the richest, most powerful nation in the history of humanity for crying out loud! It sure ain’t going to hasten Armeggedon one bit if we scrap a couple of fleet carriers or a few F-22’s, and build & staff some more medical centers plus fund them to the extent that no one is ever turned away for lack of money.
    If we can’t even provide for our own, what in the hell are we doing playing global cop and/or Santa Clause, huh?”

    You are either a liar when you say you are a conservative or you don’t know what a conservative believes. But I’ll give you one thing, you sure enjoy bloodying up a comment, you sly little vampire you.

  32. 32. TRAILERTRASH

    DALLASDAN I AM CRIPPLED AFTER A STROKE. BUT I WILL TAKE MY WHEELCHAIR TO PARTICIPATE IN THE COMMING REVOLT . I AM LOCKED AND LOADED CAN STILL USE MY LEFT ARM! VIETNAM VET PATRIOT

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