Congressman Aaron Schock (R-IL) continues to sound the alarm about President Obama's Affordable Care Act (ACA), also known as ObamaCare, and its potential budget busting impact and negative economic consequences on Illinois. Today, March 23rd, marks the three year anniversary since President Obama signed his signature health care legislation into law that was rammed through Congress along party lines.
In a new report released on Friday by the International Franchise Association (IFA) based upon a 2011 study by the nonpartisan Hudson Institute, it warns about the potential impact the employer mandate may have on millions of jobs in the franchising industry nationwide. The report indicates that in Illinois alone the potential franchise jobs at risk is a startling 144,752. In Illinois, the state unemployment rate just increased to 9.5 percent, well above the national average.
"This report is further proof that ObamaCare continues to show its true colors as a deeply flawed law that has the potential to further devastate the Illinois economy. In Illinois, we have a state budget that can ill-afford more debt, an unemployment rate that is heading in the wrong direction and a private sector that is fleeing to friendlier business environments elsewhere," said Schock. "On top of this, the Medicaid Mandate that I have been sounding the alarm about will saddle the state with an unconscionable requirement it can't afford to follow with an already nearly $2 billion hole in the state's Medicaid system. While I disagree with the U.S. Supreme Court's decision that the individual mandate is constitutional, there is no disputing as the Supreme Court cited that the individual mandate, and the ACA in its entirety, is a huge tax increase on Illinois taxpayers and small businesses. A tax increase that will stop economic growth in its tracks, and put our state on a path of further fiscal disrepair."
According to the IFA, the Hudson study showed the employer mandate puts 3.2 million full-time jobs at risk in the franchise industry nationwide, and will add more than $6.4 billion in increased costs to franchise businesses. ObamaCare represents the single largest piece of regulation ever passed. The amount of regulatory burden created by the ACA has grown to more than 20,000 pages - standing seven feet tall - since President Obama signed it into law three years ago.
On Thursday, by a 79 to 20 vote, 33 Senate Democrats and one Independent, joined all 45 Senate Republicans to overwhelmingly vote to eliminate the medical device tax that was a central part of Obamacare's financing. Effective January 1, 2013, the Affordable Care Act imposed a 2.3 percent excise tax on the manufacturing of certain medical devices. Schock, a member of the House Ways and Means committee, is a co-sponsor of the Protect Medical Innovation Act, H.R. 523, a bipartisan proposal to repeal the excise tax increase. Last June, the House voted 270 to 146 to repeal the tax. In the United States, there are more than 8,000 medical device companies, employing nearly half a million Americans. Canton, Illinois is a text book example of a small Illinois community facing the adverse impact of the tax increase on medical devices.
During the 112th Congress, Congressman Schock and Illinois House Leader Tom Cross embarked on a state wide tour to call attention to the mounting budget pressures facing Illinois taxpayers on the duel threats of expanding Medicaid costs and the full implementation of the federal Affordable Care Act.
Background on Schock-Cross Efforts
In April 2012 , Congressman Aaron Schock and Leader Tom Cross embarked on a state wide tour to call attention to the mounting budget pressures facing Illinois taxpayers on the duel threats of expanding Medicaid costs and the implementation of the federal Affordable Care Act.
In the 112th Congress, the House voted to repeal the MOE requirement, Congressman Aaron Schock (R-IL) and Illinois House Republican Leader Tom Cross issued a joint statement calling on the US Senate to join the House in passing legislation.
The Medicaid expansion in Obamacare is projected to have an unmanageable impact on Illinois' already weak budget. According to the Illinois Comptroller's office, there are $7 billion work of bills that are waiting to be paid, including $1.8 billion in Medicaid payments. These numbers do not include the estimated $2.5 billion in bills that are being held by state agencies but have not been formally submitted to the comptroller's office.
By the Numbers: Medicaid Expansion Cost to the State of Illinois
The Affordable Care Act covers the cost of NEW eligible Medicaid enrollees as a result of the law 100% until 2017, and then federal coverage begins to drop. As a result this will cost the state of Illinois $1.3 billion. The cost will only continue to grow after 2020.
Medicaid Expansion for newly eligible individuals.
2014-2016 = 100% federal funding (0% IL costs)
2017 = 95% federal/ 5% IL
2018 = 94% federal/ 6% IL
2019 = 93% federal/7% IL
2020 and beyond = 90% federal/ 10% IL
(households with incomes up to 133% of Federal Poverty Level)