Deal: Repeal ObamaCare

Writing over at The Daily Caller, Gov. Nathan Deal explains why Congress should repeal ObamaCare, nothing that simply defunding the president’s signature legislation won’t be enough:

[I]t’s no surprise that I fully support congressional Republicans’ efforts to repeal Obamacare. But with that effort stalled in the Democratic Senate, some of my House GOP friends have discussed simply cutting off the money for its implementation. While I share their concerns about the disastrous effect Obamacare will have on our economy and personal freedoms, Washington cannot simply defund it without rescinding its crippling mandates. Otherwise, these mandates will be passed on to the states to become the most burdensome, suffocating taxes on the American public in the history of this country. Unlike the federal government, states are unable to print greenbacks or borrow money from the Chinese government to cover deficits. Most states, including mine, require balanced budgets.

The costs associated with implementation are enormous and difficult to gauge. The only way we can calculate the cost is to examine the requirements of the law and then look at how the federal and state governments are expected to divide the costs.

If federal taxes were raised to cover the true costs of new healthcare spending — one estimate has it at more than $82 billion — Georgians’ federal tax obligations would rise $2 billion a year. That’s $200 for every man, woman and child in the state (meaning the bill is actually much higher for the people who actually pay income taxes).

Georgians would see their state tax burdens rise significantly as well. Georgia taxpayers would have to fork over, at a minimum, an additional $465 million per year to pay for a dramatic expansion of our state Medicaid program that is required by the new law. For Georgia families, this translates to an annual increase of approximately $1,000 per household. With so many families struggling to make ends meet, these extra costs would be nothing short of debilitating.

To cover some of the costs of Medicaid expansion and the mandated insurance exchange, Obamacare reduces the rate of reimbursement to doctors and other providers significantly. This reduction in reimbursement may affect the number of doctors who accept Medicaid patients, seriously impacting patient access at a time when demand will skyrocket. In fact, the estimated 1.2 million Georgians who will become covered through Medicaid and insurance exchanges have been projected to generate an additional 1.2 to 2 million physicians visits per year. This translates into a shortfall of 300-400 providers in Georgia.

Not only will costs rise for individuals, families and physicians, but the State Health Benefit Plan will also take a hit. Because the health care law requires employers to cover dependents up to age 26, the state and its employees will share a 12 percent cost increase. Other mandates, such as having to re-insure retirees until they reach Medicare age, will put tens of millions of dollars of new costs on the state as an employer.

While I agree with Gov. Deal that ObamaCare should be repealed, I’m still waiting on word if Gov. Deal regrets his vote for Medicare Part D – unlike his former colleague Newt Gingrich, which added trillions in unfunded liabilities to an already fiscally troubled program.

6 comments

  1. John Konop says:

    This is a very disingenuous debate from both parties.

    If you ask the majority of Americans and politicians this what they want:

    1) Medicare, VA………
    2) No preexisting conditions
    3) Drug subsidy
    4) Kids covered till they are 26

    When you talk about solutions this is what you hear:

    1) Mandatory pay insurance unconstitutional and they think they are taking the risk by using tax payers as an emergency insurance policy
    2) Directives for end of life are “death panels”
    3) Buying drugs from Canada unsafe
    4) Cutting back Medicare “killing grandmother”
    5) Pro birth in forcing the more than likely economically poor mother to have the kid yet against providing healthcare for kid and parents when it is alive.

    The real issue is the lack of adults in the room. The truth is we have aging population and the cost of healthcare is growing way faster than GDP. Unless we talk about tough cost saving measures like higher co-pays, all must pay who have a job and or money, covering less, end of life cost…….we are only playing kick the can in a game running out of streets.

    • NoTeabagging says:

      John, I agree we get no reliable info from our elected officials on both sides of this issue.

      What I want is insurance reform not just health reform. The current plan does nothing to reduce premiums a require responsibility to the consumer from the insurance companies.
      No caps and no pre-existing conditions will keep insurers raising rates.
      I want protections that my premiums are going to coverage, not slick direct mailings that hit my house four times a year from insurer that I am already using.
      I also want real customer service that actually gives me the services in my contract rather than lying to me hoping I’ll pay for that bill snafu instead of my insurer. Worse, I have to go to their legal department to get it straightened out. I want a state insurance commission that actually investigates consumer complaints, not one that simply sends you a statement from your insurers legal department and close case.

      I want to read the contract before I pay for insurance. What other business/consumer would actually pay for service before getting the terms of the contract? ( a bit like having to vote for a bill before knowing what is in it.)

      I have seen the death panel affect my family. It is the current Medicare system.

      Drug costs are out of control and a huge mystery. Due to insurance carrier changes, it became clear in our family that we were paying vastly higher amounts for prescription drugs with our new insurance. After shopping around, thanks to a Clark Howard tip, we found bidrx.com.
      We can buy a three months supply for less than $15 (including shipping), but locally, one month would cost $45.00 or more.
      Why can one American pharmacy sell prescriptions this cheap??
      I urge you all to check out this site, maybe you will also find your best prescription drug deal is from a little pharmacy in Wisconsin (not Canada.) I’d like to hear opinions as to why drug prices vary wildly.

    • John,

      The truth is, we need to have an adult conversation. Enough of politicians talking out of both sides of their mouth. You and I, we’re businessmen, we deal with the real world. I’m interested in solutions. We have to talk about making some tough choices. Adam Smith made it very clear that he supported directives for end of life and buying drugs from Canada. Yet there are some racist people, who just keep spewing hate about this or that. We need solutions!

  2. saltycracker says:

    It is no wonder that public trust in the elected continues to sink lower. Plan D might have been a mistake in lieu of dealing with big pharma issues or clearing issues to max competitive perscription insurance. But unraveling harms those that prepared, planned or fortunate to have private coverage.

    Obamacare drove a nail in the heart of corporate perscription coverage by taxing their plans (thinking they’d collect billlions) and many moved to put those eligible retirees/employees on Plan D and participate only in a supplemental plan.

    There is no going back. Corporations that offered plans aren’t going to reinstate those the government has replaced from medicare A & B to part D.

  3. saltycracker says:

    Health Insurers Won’t Cover 6-Year-Old Gainesville Girl

    Here’s an interesting news story and who is trying to stick it to who depends on your prospective….
    Medicare couple adopts an unrelated child to keep her out of “the system”. Then discovered not only will medicare not take on children no insurance company will write a policy on children in these situations. Reason, since obamacare requires insuring kids with pre-existing conditions, insurance companies quit writing new policies on healthy children.

    You’d think this situation would be one of the complicated adoption process hurdles.

    http://www.wsbtv.com/news/27284059/detail.html

    http://www.wsbtv.com/news/27284059/detail.html

  4. KD_fiscal conservative says:

    Deal may be smarter than I originally thought. He does a good job articulating the two major problems with PPACA. Costs associated with unfunded mandates, and decreased physician reimbursement from Medicare. And he also states the very valid concern with simply defunding the bill. This is something I haven’t heard Congressional repubs. admit publicly, but I guess they have political points to gain by “attacking the bill by any means necessary.” But still , he offers no solutions.

    John points out some very good ways to do this, and I hope he can take his ideas to our elected Representatives.

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