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Obama Admin. Report Confirms Health Care Bill Raises Costs

Press Release

Location: Washington, DC

Obama Admin. Report Confirms Health Care Bill Raises Costs

The Obama Administration's Centers for Medicare and Medicaid Serves (CMS) released a new analysis of the recently-passed health care bill confirming what Congressman Jack Kingston (R-GA) feared would be the case.

According to the report, the health care bill -- which was signed into law one month ago today -- actually increases national health care costs over the next 10 years by $311 billion. CMS also determined that the new law will force more than seven million seniors off their current Medicare coverage.

"Despite all the fancy speeches, arm twisting, and outright vote buying, the Administration cannot hide the fact that this bill actually raises health care costs," said Congressman Kingston. "By enacting this legislation, Congress and the President have just placed a massive new bureaucracy we cannot afford on top of a broken system. They have ignored the underlying problems in our health care system and kicked the can down the road for future generations. There is work left to be done on health care and we owe it to our children and grandchildren to address this today."

In addition to increased costs and removing seniors from their current plans, the report concluded that health care will increase to 21% of the nation's economy by 2019. The bill spends more than $828 billion for health care coverage and leaves 18 million American citizens uninsured.

Those unable to afford coverage as well as employers who cannot afford to provide it will pay an additional $120 billion in taxes. In addition, the $5 billion provided in the bill for high risk pools is not enough.

Although Medicaid is already bankrupt, the report found that the health care bill would add more than 20 million people to the entitlement's rolls. The expansion is estimated to cost $410 billion.

Finally, the report found that the mechanisms designed to control costs in Medicare are likely unsustainable and that doctors may refuse to service Medicare beneficiaries because of the changes in reimbursement rates.

A longtime advocate for meaningful health care reform, Congressman Kingston has cosponsored legislation to repeal the bill in its entirety and replace it with reforms that expand bring down costs without growing government.

"There is a better way," Congressman Kingston said. "From medical liability reform to purchasing insurance across state lines and giving individuals the same benefits for purchasing insurance as big corporations get today. We need health care transparency so everyone knows what they're paying for and how much things costs and we should allow small businesses to join together for the same purchasing power as huge corporations like Coca Cola and Delta. By addressing the root problems in our health care system we can expand access to quality, affordable and patient-centered care without growing the size of government or adding to our untenable debt."

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