The GOP was out in full force on the Sunday talk shows pushing the same stale talking points that they have been pushing for the last year. This bill is too big, start over, increased premiums BLAH, BLAH, BLAH. We caught the recently annointed GOP fiscal wonder boy Rep. Paul Ryan of Wisconsin on Fox News Sunday. Below we have deconstructed his claim that premiums will rise as a result of the health care reform bill as done by the Congressional Budget Office and the President.
REP. PAUL RYAN (WI) Wisconsin claim of Fox News Sunday 02/28/10: “No, it’s not true [that most Americans would be paying less in premiums]. The Congressional Budget Office says they will get higher premium increases 10 to 13 percent. Private actuaries put those premium increases in the double digit to triple digit territory. The Blue Cross plans are telling us you’re gonna see a massive spike in premiums for people…that’s the problem. What we’re hearing coming out of Washington and the rhetoric doesn”t match the actual facts that are underneath this legislation.”
What the CBO actually said:
According to the nonpartisan CBO, for those in large group policies there would be no increase or a up to a 3% decrease in premiums. For those in the individual market, premiums would increase 10% to 13% BECAUSE indivuals policy buyer would get better policies [actual coverage for routine procedures like mamograms, physicals, etc.] and over half of those in the individual market would get subsidies ‘that would reduce their costs well below the premiums that would be charged for such policies under current law.” In other words, people would receive better value for their money or ACTUAL INSURANCE COVERAGE and not junk insurance that doesn’t even cover a annual physical.
Two days later after Congressman Ryan had time to think about a response:
REP. PAUL RYAN: “Well if you had these…..if you had subsidies sure….but lets get this point clear, we’re not going to have more insurance competition under this new law we’re gonna have less insurance competition…that’s gonna increase prices and if you put more mandates on insurance as this does….this federalizes the regulation of health insurance…displacing states rights…that’s gonna make it more expensive. So what this bill attempts to do is…yes make health insurance much more expensive and then just have Washington subsidize more of it to try and limit people’s out of pocket cost..that’s a deficit nightmare its a cost nightmare. And so you will be putting more cost on to the backs of taxpayers at the end of the day here.”
President Obama’s reponse to Congressman Ryan’s argument two days prior to him making it:
PRESIDENT OBAMA: When I was young, just got out of college, I had to buy auto insurance. I had a beat-up old car. And I won’t name the name of the insurance company, but there was a company — let’s call it Acme Insurance in Illinois. And I was paying my premiums every month. After about six months I got rear-ended and I called up Acme and said, I’d like to see if I can get my car repaired, and they laughed at me over the phone because really this was set up not to actually provide insurance; what it was set up was to meet the legal requirements. But it really wasn’t serious insurance.
Now, it’s one thing if you’ve got an old beat-up car that you can’t get fixed. It’s another thing if your kid is sick, or you’ve got breast cancer.
So the general idea has been here that we should set up some minimum standards within the exchange, that a plan that people are buying into, whether it’s a small business or an individual, should be at least solid enough that if your kid got sick, they’re actually going to be treated; that if something happened that you weren’t left with a huge bunch of out-of-pocket costs. It is true that you can always get cheaper insurance if it has really high deductibles or really high co-payments or doesn’t cover as many things. And so there has to be a balance that’s struck there. [SNIP]
More from the President:
Now, let me respond to your question. We could set up a system where food was probably cheaper than it is right now if we just eliminated meat inspectors and we eliminated any regulations in terms of how food is distributed and how it’s stored. I’ll bet in terms of drug prices, we would definitely reduce prescription drug prices if we didn’t have a drug administration that makes sure that we test the drugs so that they don’t kill us.
But we don’t do that. We make some decisions to protect consumers in every aspect of our lives. And we have bipartisan support for doing it, because what we don’t want is a situation in which suddenly people think they’re getting one thing and they’re getting something else — they’re harmed by a product. What Secretary Sebelius just referred to — which is not a Washington thing; in fact, state insurance standards in many states are higher than anything that’s done in Washington — is as a consequence of seeing consistent abuses by the insurance companies and people finding themselves helpless to deal with.
Just to go back to the original argument that Lamar and I had and we’ve now chased around for quite some time. Look, if I’m a self-employed person who right now can’t get coverage or can only buy the equivalent of Acme insurance that I had for my car — so I have some sort of high-deductible plan. It’s basically not health insurance; it’s house insurance. I’m going to — I’m buying that to protect me from some catastrophic situation; otherwise, I’m just paying out of pocket. I don’t go to the doctor. I don’t get preventive care. There are a whole bunch of things I just do without. But if I get hit by a truck, maybe I don’t go bankrupt. All right, so that’s what I’m purchasing right now.
What the Congressional Budget Office is saying is, is that if I now have the opportunity to actually buy a decent package inside the exchange that costs me about 10 to 13 percent more but is actually real insurance, then there are going to be a bunch of people who take advantage of that. So, yes, I’m paying 10 to 13 percent more, because instead of buying an apple, I’m getting an orange. They’re two different things.
Now, you can still — you still have an option of — no, no, let me finish. The way that this bill is structured uses a high-cost pool, a catastrophic pool, for people who can’t afford to buy that better insurance, but overall for a basic package — which, by the way, is a lot less generous than we give ourselves in Congress. So I’m amused when people say, let people have this not-so-good plan, let them have a high-deductible. But there would be a riot in Congress if we suddenly said, let’s have Congress have a high-deductible plan, because we all think it’s pretty important to provide coverage for our families. And the federal health insurance program has a minimum benefit that all of us take advantage of. And I haven’t seen any Republicans — or Democrats — in Congress suddenly say, “You know what, we should have more choices and not have to have this minimum benefit.”
So what we’re basically saying is we’re going to do the same thing for these other folks that we do for ourselves — on the taxpayers’ dime, by the way. [SNIP]
But again, the one difference, as I understand it, and the reason you’re not supporting the approach that we take, is what we say is there should be sort of a minimum baseline benefit, because if not, what ends up happening is you get a company set up in Nevada — let’s assume there were no rules there, there are no protections for the woman who’s got breast cancer; they go into New York, they offer pretty cheap insurance to everybody who’s healthy; they don’t offer the same insurance to people who aren’t so healthy or have preexisting conditions. They drain from New York all the healthy people who are getting cheaper rates, but now suddenly everybody left in New York who doesn’t qualify for that cheaper plan is in a pool that’s sicker, older, and their premiums go up.
So what we’ve said is, well, if we can set a baseline, then you can have interstate competition, but it’s not a race to the bottom; rather everybody has got some basic care. [SNIP]
NEXT?