Thursday, July 19, 2012

Facts Deflate Sebelius’s Defense of Obamacare

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Fix Health Care Policy - A weekly Update from the  Health Care Initiative at The Heritage Foundation
Facts Deflate Sebelius’s Defense of Obamacare

It must be a tough job defending Obamacare, but someone’s got to do it. Last week, that someone was Secretary of Health and Human Services Kathleen Sebelius, who wrote an op-ed for The Washington Post.

A Decrease in Health Care Costs? Not So Fast

Sebelius says national health expenditures have increased only by about 4 percent annually over the past two years, significantly less than in previous years.

Sure—health care costs did, in fact, slow somewhat over the last few years. But the trend started before Obamacare even became law. The real reason for slowed growth in health care costs, as Administration officials themselves explain, is the poor economic climate.

Relief for Small Businesses? Not Really

According to the Secretary, “new tax credits in the law are saving hundreds of thousands of small companies thousands of dollars each on their insurance costs.”

But the truth is that, despite original estimates that 4 million small businesses would be eligible for and benefit from Obamacare’s small business tax credit, only 28,100 employers claimed the full credit amount. The Government Accountability Office even concluded that the credit was not big enough to incentivize employers to offer coverage and was too complex and time-consuming to file for.

Obamacare Strengthens Medicare? Not Quite

Last but not least, Secretary Sebelius argues that under Obamacare, “Medicare is stronger than ever.” She claims that the Medicare savings achieved in Obamacare extends the solvency of the program. But the Secretary and supporters also argue that the new spending in the law is paid for by using these same Medicare savings.

Sebelius says it best herself: “People are entitled to their opinions, but not to their own facts. And the facts in this case are clear.” However, the facts aren’t on the side of Obamacare.

Read the rest on The Foundry >>


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