Healthcare "Reform" Hurts AZ Pt. II
By Representative Nancy Barto (R-Legislative District 7)
Far from achieving the objectives of providing healthcare to all Americans and lowering costs, Arizona citizens can count on these outcomes instead if healthcare “reform” passes as is:
Increased unemployment
The imposition of $135 billion in new taxes on businesses who cannot afford to finance their workers’ health coverage will increase unemployment.
Even the Congressional Budget Office confirmed that this tax on jobs, called a “pay-or-play” mandate, “could reduce the hiring of low-wage workers,” and that as many as 5.5 million jobs could be lost as a result of the new taxes.
The employer mandate isn’t the only new tax targeting businesses.
The bill includes nearly half a trillion dollars in other taxes – including a surtax on the so-called “wealthy” that actually hit more than half of small businesses right where they live.
This will greatly stifle job creation and hinder expansion at a time when unemployment is at a 26 year high. Together this equals new taxes totaling $729.5 billion just on businesses.
Unfunded mandate on states
Arizona is $2 billion in the red this year and the 2011 budget is looking almost twice as bad - yet Washington’s plan forces states to increase eligibility in their Medicaid programs, costing Arizona as much as $5.9 billion more over five years.
Governor Brewer expressed these concerns in the Arizona Republic, saying, “We can’t afford it. We can’t afford the AHCCCS program we have currently.”
Which is why Congress included a $90 billion Medicaid bailout in the “Stimulus” package and another $23.5 billion bailout in this bill.
Higher insurance costs
Contrary to Congress’ goal to lower healthcare costs, this plan will raise the cost of insurance significantly - for everyone. Here’s why:
First, new Federal rules mandate all plans, whether private, employer or government-run, will have to meet minimum benefits standards and comply with community rating and guaranteed issue mandates. We would basically model the nation’s plan after what the state of New York put in place in the early 1990’s. Their average premiums in the individual market are more than twice the national average and still 14% of the population remains uninsured.
Second, the bill does not allow for lower cost plans, such as high deductible health plans and consumer-directed accounts like HSAs, to exist going forward, removing this option for 5% of Americans under 65.
Third, young and healthy persons, whose insurance premiums now cost about ¼ the average premium paid by individuals aged 60-64, will subsidize the premiums of more disease-prone and older adults under the new plan - and it will cost them. As a result, many will choose or be forced to pay the 2.5% of their income in penalties rather than the high cost of insurance. Mandates don’t work. Hawaii has had an individual insurance mandate since 1973 and a 10% uninsured rate.
Healthcare freedom threatened
Nowhere does the United States Constitution provide Congress the right to force its citizens to purchase health insurance.
This bill usurps fundamental freedoms Arizonans enjoy - to be able to purchase health care privately and whether or not to participate in a health plan.
The Arizona Legislature referred the Arizona Healthcare Freedom Act to the ballot next year so Arizona citizens have the opportunity to preserve these fundamental rights in our state constitution.
Real and substantive health care reforms are critical to Arizona, but only with freedom as a foundation.
Far from achieving the objectives of providing healthcare to all Americans and lowering costs, Arizona citizens can count on these outcomes instead if healthcare “reform” passes as is:
Increased unemployment
The imposition of $135 billion in new taxes on businesses who cannot afford to finance their workers’ health coverage will increase unemployment.
Even the Congressional Budget Office confirmed that this tax on jobs, called a “pay-or-play” mandate, “could reduce the hiring of low-wage workers,” and that as many as 5.5 million jobs could be lost as a result of the new taxes.
The employer mandate isn’t the only new tax targeting businesses.
The bill includes nearly half a trillion dollars in other taxes – including a surtax on the so-called “wealthy” that actually hit more than half of small businesses right where they live.
This will greatly stifle job creation and hinder expansion at a time when unemployment is at a 26 year high. Together this equals new taxes totaling $729.5 billion just on businesses.
Unfunded mandate on states
Arizona is $2 billion in the red this year and the 2011 budget is looking almost twice as bad - yet Washington’s plan forces states to increase eligibility in their Medicaid programs, costing Arizona as much as $5.9 billion more over five years.
Governor Brewer expressed these concerns in the Arizona Republic, saying, “We can’t afford it. We can’t afford the AHCCCS program we have currently.”
Which is why Congress included a $90 billion Medicaid bailout in the “Stimulus” package and another $23.5 billion bailout in this bill.
Higher insurance costs
Contrary to Congress’ goal to lower healthcare costs, this plan will raise the cost of insurance significantly - for everyone. Here’s why:
First, new Federal rules mandate all plans, whether private, employer or government-run, will have to meet minimum benefits standards and comply with community rating and guaranteed issue mandates. We would basically model the nation’s plan after what the state of New York put in place in the early 1990’s. Their average premiums in the individual market are more than twice the national average and still 14% of the population remains uninsured.
Second, the bill does not allow for lower cost plans, such as high deductible health plans and consumer-directed accounts like HSAs, to exist going forward, removing this option for 5% of Americans under 65.
Third, young and healthy persons, whose insurance premiums now cost about ¼ the average premium paid by individuals aged 60-64, will subsidize the premiums of more disease-prone and older adults under the new plan - and it will cost them. As a result, many will choose or be forced to pay the 2.5% of their income in penalties rather than the high cost of insurance. Mandates don’t work. Hawaii has had an individual insurance mandate since 1973 and a 10% uninsured rate.
Healthcare freedom threatened
Nowhere does the United States Constitution provide Congress the right to force its citizens to purchase health insurance.
This bill usurps fundamental freedoms Arizonans enjoy - to be able to purchase health care privately and whether or not to participate in a health plan.
The Arizona Legislature referred the Arizona Healthcare Freedom Act to the ballot next year so Arizona citizens have the opportunity to preserve these fundamental rights in our state constitution.
Real and substantive health care reforms are critical to Arizona, but only with freedom as a foundation.