Thursday, March 25, 2010

Cornyn Amendment (#3698) on National Health Expenditures

Senator Cornyn offered an amendment (#3698) regarding national health expenditures.  
Summary
  • The amendment conditions the implementation of the health care law on a certification by the CMS actuaries that the legislation “will reduce national health expenditures relative to the level of such expenditures under current law.”
Arguments in Favor
  • In 2009, American health expenditures consumed 17.3% of the American economy – an all-time record, the highest level among industrialized countries, and the largest jump in health spending as a share of the economy in decades.
  • The Administration’s own actuaries have concluded that the law will RAISE health costs, and the Congressional Budget Office found that the law, in conjunction with the reconciliation bill, would raise the federal budgetary commitment to health care by $390 billion in their first ten years.
  • The Congressional Budget Office also found that the law would raise premiums in the individual market by an average $2,100 per family.
  • Tom Daschle – the man President Obama wanted to nominate as his HHS Secretary – recently admitted to the New York Times that the health legislation has cost containment provisions that “would be of ‘minimal value’ at the beginning.”
  • During his presidential campaign, Senator Obama made as one of the focal points of his plan the promise that it would “save $2,500 annually for [the average] family” – a pledge the President has not reiterated recently.
  • This amendment holds President Obama to his campaign promise that health reform actually will hold down costs by requiring the non-partisan CMS actuaries to certify the legislation would REDUCE overall health expenses rather than raising costs still further.