The Health Care Fight Has Just Begun

MORNING BELL (The Heritage Foundation/Foundry), 12/21/2009 - The months long drama over the fate of President Barack Obama’s health care plan ended at 1 AM this morning when the Senate voted 60 - 40, on a strictly party line vote, to end debate on Majority Leader Harry Reid’s (D-NV) manager’s amendment; a mere 38-hours after it had been unveiled to the American public. With Sens. Joe Lieberman (I-CT) and Ben Nelson (D-NE) threatening to veto the bill if any significant changes are made by the House in conference, it is virtually guaranteed that this is the version of Obamacare that will be signed by the President before his State of the Union address in January.

Final passage of this health bill will be historic, but not in the way President Obama intended. Never before has such a large restructuring of the U.S. economy been passed on a straight party-line vote. Never before has legislation so unpopular with the American people been passed on a straight party-line vote. Never before has the fate of one-sixth of our economy been so dependent on backroom deals and payoffs the full extent of which may not be known for years.

To defend this abomination of a bill yesterday on the Sunday shows, the White House did not send Health Reform director Nancy-Ann DeParle or Budget director Peter Orszag. Instead they sent White House sent political consultant David Axelrod to defend the bill on three of the five top Sunday shows. But there simply is no defending the policy substance of this bill:

Busts the Federal Budget: According to the Congressional Budget Office (CBO), the amended Reid plan would reduce the federal budget deficit by $132 billion over the period 2010 to 2019, but that is a mirage. The CBO can only score what the Senate tells them they will do, not what everyone knows they actually will do. For example, the Senate bill cuts Medicare fees for doctors by 20% starting in 2011. Nobody believes these cuts will be allowed to happen. By changing just that provision, Obamacare ends up adding $196 billion to the deficit in the first 10 years and $765 billion in the second decade.

Busts State Budgets: According to The Fiscal Survey of States, 31 states cut higher education and 26 states cut K-12 education in 2009. This is because Medicaid and education are almost always any states two highest budget items, and states cannot touch the entitlement to Medicaid. Obamacare only increases state Medicaid obligations thus further bankrupting states. This is why Sen. Nelson demanded a permanent Medicaid bailout for Nebraska in exchange for his vote. Other states like Hawaii, Vermont, and Massachusetts also won key federal bailouts for their health programs. Who are the losers? All the other that are forced to pick up the $1 billion tab.

Increases Health Care Costs: Throughout the health care debate, President Obama promised reform that would “bend the cost curve down” on health care spending. But according to the President’s own the Centers for Medicare and Medicaid Services (CMMS) the Senate does exactly the opposite, actually driving health care costs up by adding $234 billion to national health expenditures.

Endangers Americans Quality of Care: President Obama used to promise that “If you like your health care plan, you can keep your health care plan.” But as the CBO confirmed this month 10 million Americans will be forced out of their current health insurance plan should Obamacare become law. Even worse, CMMS has reported that Obamacare’s $493 billion in Medicare cuts could force as many as one-in-five health care providers into insolvency thus forcing them out of the Medicare program.

Forces Americans to Pay for Abortions: Despite the inclusion of the Nelson amendment, when the federal government’s role over the financing and delivery of health care grows, as it does under this bill, a requirement to segregate premiums that cover abortion services would be merely cosmetic in practice.

$400 Billion in New Taxes: From taxes on employment to taxes on tanning beds, Obamacare is funded with over $400 billion in new taxes at a time of double digit unemployment, including $29 billion in taxes on 19 million Americans who still will not receive any health insurance.

A “Starter Home” for Government Run Health Care: While technically not a public option, this scheme will have the same results. By giving unprecedented power and authority to the Director of Office of Personal Management, the multi-state plans created in the bill will simply become the government plan. Single payer advocate Sen. Tom Harkin (D-IA) is even calling the bill a “starter home” for further reform.

This bill will only make every single problem with out health care system worse: higher spending, higher deficits, and worse care. Former-Democratic National Committee Chair Howard Dean said on Meet the Press yesterday, “[This bill] simply sets us on a track in this country which is expensive and where we’re going to have lots more political fights.” Dean is dead on. President Barack Obama’s signature on this health care bill settles nothing: it is only the beginning of a much larger health care fight.

Quick Hits:

• During last night’s debate, Sen. Sheldon Whitehouse (D-RI) compared health bill opponents to Nazis on Kristallnacht.
• While the White House is calling President Obama’s Copenhagen Climate trip a “meaningful and unprecedented breakthrough”, the left is calling it the “Copenhagen Catastrophe”.
• As Rep. Barney Frank (D-MA) rushes to give the Federal Reserve more regulatory power, the Washington Post reports that the Fed failed to prevent this crisis because it did not understand the risks being taken.
• The head of the UN’s climate change panel - Dr Rajendra Pachauri - has established an astonishing worldwide portfolio of business interests with bodies which have been investing billions of dollars in organizations dependent on his policy recommendations.
• Now that the state is not paying for them, the Beverly Hills School board has voted to cut hundreds of slots reserved for nonresident children.