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Elections, Features, Politics

SOTU FACT: ObamaCare Is Driving Up Costs, Jeopardizing Coverage & Hurting Small Businesses

Posted: February 13, 2013 at 10:00 am   /   by

CLAIM: President Obama says ObamaCare is helping to slow the growth of health care costs.

  • “[P]atients … enjoy stronger protections than ever before. … Already, the Affordable Care Act is helping to slow the growth of health care costs.”  (President Obama, State of the Union Address, February 12, 2013)

FACT: ObamaCare is driving up costs, jeopardizing coverage and making it harder for small businesses to hire. 

  •  “President Obama’s health care law will push 7 million people out of their job-based insurance coverage — nearly twice the previous estimate, according to the latest estimates from the Congressional Budget Office,” The Washington Times reports.
  •  “Spending on health care rose 4.6 percent in 2011 — up $4,500 per person, on average — according to the nonpartisan Health Care Cost Institute.” ABC News reports. “Health insurance premiums for individuals and families also climbed year-over-year, up 3 percent ($186) on average for an individual and 4 percent ($672) on average for a family, according to the Kaiser Family Foundation.”
  • An American Action Forum survey of insurance companies released last week found that “the relatively young and healthy in both the small group and individual markets” will see their premiums increase by 169 percent once ObamaCare is fully implemented.
  • In a recent Gallup survey, the top concern cited by small business owners was rising health care costs, with nearly three-fourths  (74 percent) of the respondents reporting that rising costs were hurting their business. Sixty-one percent of small business owners who are not hiring “point to worries about the potential cost of healthcare as the reason” why.
  • According to the most recent U.S. Chamber of Commerce Small Business Outlook Survey, 75 percent of small businesses expect that ObamaCare will increase costs for their businesses and 71 percent think implementation of the law “will make it harder to hire more employees.”
  • The ObamaCare medical device tax could cost the medical device industry “10 percent of its U.S. workforce,” shipping an estimated 43,000 jobs overseas, The Hill reports. The House passed legislation repealing the medical device tax in the previous Congress, but Senate Democrats refused to take action.  The bill has been re-introduced by Rep. Erik Paulsen (R-MN) and enjoys broad, bipartisan support in the House and Senate.

BOEHNER QUOTE: “The president’s health care law adds a massive, expensive, unworkable government program at a time when our debt already exceeds the size of our whole economy…We can’t afford it, and we can’t afford to leave it intact.” (Remarks, 11/13/12)

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SOTU FACT: ObamaCare Is Driving Up Costs, Jeopardizing Coverage & Hurting Small Businesses