Johanns Statement On Effectiveness Of Recent Health Care Proposal
Statement
Johanns Statement On Effectiveness Of Recent Health Care Proposal
Senator Mike Johanns today made the following statement on the release of the non-partisan Congressional Budget Office's (CBO) preliminary analysis of the estimated cost and effectiveness of the health care proposal submitted by the Senate Committee on Health, Education, Labor, and Pensions (HELP):
"This proposal does not come close to achieving either goal laid out by the Administration, which has maintained that under any successful proposal, everyone in America will have access to affordable health care, and that no one satisfied with their current plan will lose it. The CBO report indicates that fifteen million Americans would lose their employer-sponsored health insurance, and a full two-thirds of the original number of uninsured would remain uncovered by any plan. The report demonstrates exactly why thoughtful analysis is needed to find the best approach to affordable health coverage.
"In addition, CBO ten-year estimates indicate it would cost taxpayers $62,500 for each newly insured American covered in this proposal, while still leaving 34 million people uninsured. When it is all said and done, this plan would bring down the level of uninsured in America by less than one-third. I cannot think of a single person who should be satisfied with such an inefficient use of taxpayer dollars. We must explore more options and keep an open mind to find a real solution that ensures affordable, accessible coverage, without a government takeover of health care."
Fast Facts on the Congressional Budget Office Analysis of the HELP Proposal:
This health care legislation is estimated to cost taxpayers at least $1 trillion over the next ten years, and would decrease the uninsured by just 16 million people.
o It is estimated that 39 million individuals would obtain coverage through the proposed insurance exchanges.
o However, approximately 15 million people would lose their current employer provided insurance, a decline of about 10 percent.
o About 8 million people currently covered through programs such as Medicaid and the State Children's Health Insurance Program (SCHIP) would move to the new government-run insurance program.
After the full implementation of this bill, the total number of uninsured people would fall to 36-37 million people, or a 13 percent uninsured rate.
Under this legislation, people with incomes between 150 percent and 500 percent of the federal poverty level would get some type of subsidy to help buy coverage.
o These subsidies would cost $1.3 trillion over a decade.
o 72 percent of Americans would qualify for a subsidy.
o The assumption is these costs would be offset by tax revenue from assumed higher wages as employers stop providing health insurance options to employees.
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