The Health Care Law, Stifling Job Growth

Two years ago, I watched as Congress and the White House forced the health care law through the process using backroom deals and false promises—all the while, ignoring the objections of so many Americans.  I came to Washington to get this law off the books, and that is why one of my first votes as a freshman Member of Congress was to repeal the health care law in its entirety. 

No matter whom I talk with—business owners, doctors and nurses, friends and neighbors—everyone is concerned about how the health care law will negatively affect their lives and the future of this country.  From traveling around the 6th District, I have heard countless stories from job creators who can’t grow and hire based on the health care mandates still pouring out of Washington:

Job Creators Sound Off:

  • 79% said it won’t reduce paperwork or simply the provision of health care
  • 77% said the health care law will increase taxes
  • 65% said it won’t slow the rate of health insurance cost increases
  • 59% said it won’t improve the overall health of the American public

NFIB Research Foundation Report: PPACA One Year Later: Small Business Owners Expect Costs to Rise

The Health Care Law, Stifling Job Growth

  • The health care law imposes a penalty on employers with over 50 employees that do not offer government-qualified health insurance. This provision will hurt job creation, especially in the small business sector, where the economic incentive will be to stay under 50 employees.
    The Heritage Foundation, WebMemo #3108
  • The law’s employer mandate could cause the elimination of 1.6 million jobs, with 66% of those coming from small businesses. NFIB Fact Sheet: Small Business Impact of a National Employer Healthcare Mandate
  • A recent McKinsey and Company report predicted that, “Overall, 30% of employers will definitely or probably stop offering insurance coverage in the years after 2014,” due to the health care law.  So much for when we were promised that “If you like what you have you can keep it.” Russ Britt, “Firms Halting Coverage as Reform Starts: Survey 30% of Companies Say They’ll Stop Offering Health Plans,” Market Watch, 6/6/2011
  • Causes 9 million people to lose the insurance they now have. Congressional Budget Office Director Douglas Elmendorf, Letter To Speaker Nancy Pelosi, 3/20/10
  • Increases premiums by 10% for people without employer-based insurance. CBO Director Elmendorf, Letter To Senator Evan Bayh, 11/30/09
  • Raises taxes by $569 billion on small businesses and creates a new marriage penalty with new income and investment taxes. CBO Director Douglas W. Elmendorf, Letter to Speaker Nancy Pelosi, 3/18/10
  • Increases the already bloated deficit by $260 billion over the next decade. CBO Director Douglas Elmendorf, Letter To Rep. Paul Ryan, 3/19/10
  • After fully implemented, 23 million people will still be uninsured in 2019. Table 4, CBO Director Douglas Elmendorf, Letter to Nancy Pelosi, 3/20/10

The Health Care Law By the Numbers:

$504 A YEAR PREMIUM INCREASES FOR YOUNG AMERICANS. Americans younger than 35 who try to buy their own insurance will pay $42/month ($504/year) more under ObamaCare, according to a study by RAND Health. 

“Health Premiums May Rise 17% For Young Adults Buying Own Insurance,” Associated Press, 3/29/2010

20 MILLION AMERICANS COULD LOSE EMPLOYER-SPONSORED HEALTHCARE, EVEN ACCORDING TO CBO.

“CBO: ACA Could Jeopardize Workplace Coverage,” Politico, 3/15/2012

$1.76 Trillion TOTAL COST OVER THE NEXT TEN YEARS

“CBO: ObamaCare to Cost $1.76 Trillion Over 10 Years,” The Washington Examiner, 3/13/2012 

$525 BILLION IN NEW TAXES, FEES AND PENALTIES ON FAMILIES AND SMALL BUSINESSES.

“Letter to Nancy Pelosi,” Congressional Budget Office, 3/20/2010

30 PERCENT OF EMPLOYERS “DEFINITELY” PLAN TO DROP COVERAGE IN 2014.

“Health Reform Won’t Dismantle Employer Coverage, Report Says,” Bloomberg Businessweek, 10/21/2011

$682 INCREASE IN PER-PERSON HEALTHCARE COSTS FROM 2011 TO 2012. “Health care costs continue to grow — trend of 5.9% expected. Average total health care costs per employee are expected to reach $11,664 in 2012, up from $10,982 in 2011.”

“Performance in an Era of Uncertainty,” Towers Watson/National Business Group on Health Employer Survey on Purchasing Value in Healthcare, March 2012

77% OF COMPANIES CONSIDERING DROPPING HEALTH COVERAGE FOR EMPLOYEES: Only 23% of companies are confident that they will offer health benefits in 10 years, down from 73% in 2007 and 57% in 2009.

“Performance in an Era of Uncertainty,” Towers Watson/National Business Group on Health Employer Survey on Purchasing Value in Healthcare, March 2012

TWO-THIRDS OF EMPLOYERS FINDING IT DIFFICULT TO MAINTAIN THEIR CURRENT INSURANCE.

“The Health Care Reform Survey: 2011-2012,” Willis, March 2012

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