In The News

            Democrat Senator Max Baucus of Montana fears that the law’s implementation will be a “train wreck.”  Democrat Senator Jay Rockefeller of West Virginia said the law is becoming too complicated to properly implement, noting “…but up to this point it is just beyond comprehension.” Democrat Senator Charles Schumer said the law will cause health insurance rates to go “through the roof” unless government regulators keep a close eye on insurers. And Senate Majority Leader Harry Reid shares the concerns that the law could become a “train wreck” – and asserted that the best way to fix the situation is to spend more taxpayer money.

            What law has these Democrat Senators so concerned? Is it some leftover regulation from the George W. Bush Administration? No. The law they are so concerned about is the Patient Protection and Affordable Care Act (PPACA), more commonly referred to as “Obamacare.” 

            I share the concerns expressed by Senators Baucus, Rockefeller, Schumer and Reid. And after conducting dozens of meetings with doctors, hospital administrators, insurance providers and citizens since coming into office in January, I assure you that many other people do as well. Even those who support the health care law are quick to highlight provisions they feel will be harmful to patients and the healthcare industry.

            The PPACA was passed by a Democrat-controlled Congress and signed into law by President Barack Obama in 2009.  The law greatly expanded the size and scope of government by mandating that in 2014 all U.S. citizens and legal residents must obtain “qualifying” health care coverage - or face a penalty.  The Supreme Court upheld the constitutionality of that mandate on June 28, 2012 by citing Congress’s ability to tax.

             The PPACA accounts for more than $525 billion in new taxes on families and small businesses, including an employer mandate tax that forces businesses employing more than 50 people to provide health insurance to all employees, or risk paying a fine.  More than a dozen of these new taxes will impact families making less than $250,000 a year. According to the Joint Committee on Taxation, about 73 million taxpayers earning less than $200,000 will see their taxes rise as a result of various PPACA provisions. The non-partisan Congressional Budget Office (CBO) originally estimated that the bill would cost $940 billion over ten years.  That estimate has now increased to $1.683 trillion.

              That’s a 55 percent cost increase before the law even is fully implemented. I respectfully disagree with Senator Reid’s assertion that spending more taxpayer dollars will remedy the situation. Your family and mine already are on the hook for quite enough, thank you very much.

               The tax increases and new regulations that are coming our way will threaten jobs in an economy already stricken with a high unemployment rate and anemic growth. Here’s just a sampling of what’s in store:

• PPACA Navigators: The Department of Health and Human Services recently announced $54 million in grants for PPACA navigators — people or organizations that will help explain the health law’s new programs. The regulations to describe these positions were 63 pages long, and the navigators could earn $20 an hour or more. People already are calling my office asking where they can sign up.
• Tanning Tax: A 10 percent tax on tanning services will impact an estimated 18,000 small businesses nationwide. The tax will hurt small businesses, but particularly could be hard on female business owners. While women account for approximately 26% of all business owners, they own an estimated 75% of tanning businesses.
• Cadillac Tax: A 40 percent tax on health coverage that costs more than what the government deems “appropriate.” While these plans have higher costs, they also have lower deductibles and higher benefits.  This tax will hurt small businesses, which typically pay upward of 18 percent more than others for health insurance. The tax is indexed for general inflation (not health care costs) so, as health care costs continue to rise, more and more people will be forced to pay this tax each year.
• Medical device tax: Manufacturers and importers of certain medical devices will face a 2.3% excise tax.  Currently, 81% of American medical device manufacturers are small businesses (1-50 employees), and over 91% of medical device manufacturers are small or mid-sized businesses (under 1,000 employees). 
• Individual mandate: Starting in 2014, based on their income levels, all U.S. citizens and legal residents must have “qualifying” health coverage or pay penalties. For an individual, the penalty begins in 2014 at either $95 or 1.0% of household income, whichever is larger. In 2015, it grows to $325 or 2.0%. In 2016, it reaches $695 or 2.5%. After 2016, the amount will rise by a cost-of-living adjustment.

               The list goes on. The PPACA creates an unelected and unaccountable board known as the Independent Payment Advisory Board, with terms longer than the President’s, who will be charged with determining which medical services will be covered by Medicare. The PPACA creates 159 new regulatory agencies. New PPACA regulations currently total more than 13,000 pages. This will result in an estimated 60 million hours of new compliance and paperwork requirements for states and employers – with a total cost of $27.6 billion. And finally, according to the CBO, the PPACA cuts over $764 billion from Medicare.

                Henry Chao, the government's chief technical officer in charge of implementing the PPACA’s insurance exchanges, was quoted in the Congressional Quarterly as saying "I'm pretty nervous . . . Let's just make sure it's not a third-world experience."

                I have supported a full repeal of the President’s health care law and support efforts to replace it with a system that emphasizes improving quality, accessibility and affordability. The Republican House of Representatives has voted more than 30 times to defund or repeal the health care law. Despite the concerns stated above, the U.S. Senate has blocked each of those efforts, and President Obama isn’t about to support the repeal of his signature legislative initiative.

                So, elections have consequences. The voters have chosen to support a divided government for the next two years at least. Congress must work within that framework to try to address the PPACA’s many flaws. I’ll continue to work with my colleagues on both sides of the aisle to initiate common-sense reforms that don’t interfere with individual choice, threaten jobs due to rising costs on employers or increase the burden of debt on our seniors and, in the decades ahead, our children and grandchildren.