Obamacare: One year of broken promises

By Rep. Joe Pitts
Guest columnist

March 23 marks the one-year anniversary of President Obama's signing of the health care reform bill. On the day of the signing, the President singled out a business owner for praise saying, "I'm signing it for Ryan Smith, who's here today. He runs a small business with five employees. He's trying to do the right thing, paying half the cost of coverage for his workers. This bill will help him afford that coverage."

The President said that Ryan was trying to do the right thing, but Obamacare might still penalize his business. In fact, the law requires employers to pay more than 50 percent of employees' health coverage. If they fail to do so, they pay a hefty fine.

It seems like almost everyday we see new facts about Obamacare that don't square with the talking point promises that were made in the run up to passage. One of those talking points was that 4 million small businesses, like Ryan Smith's, would receive tax credits to help pay for covering employees.

Unfortunately, Obamacare's definition of small business is much more restrictive than typical. Only businesses with 25 or fewer employees qualify for credits. The Small Business Administration has a variety of definitions for the size of a "small" business. The definition ranges from 50 to 1,000 employees, depending on the industry. This means tens of millions of workers are employed at business too big to qualify for this help.

Every American was promised that if they like their plan, they could keep it. According to a survey by the National Business Group on Health, 26 percent of companies plan to discontinue insurance for current and future retirees. According to this same survey, over one-third of businesses are revisiting their health care strategy for workers and may exit the market.

To prevent millions of workers from losing their health care coverage right now, the Department of Health and Human Services has handed out more than 1,000 waivers to the law. While HHS is wise to grant flexibility for employers, the huge number of waivers demonstrates that the law is poorly written.

Despite all of the claims that Obamacare would reduce the cost of insurance, the Medicare actuary and the Congressional Budget Office have both crunched the numbers and found that spending increases because of the law. Overall spending on health care increases by $311 billion in the coming years.

Without the various budget gimmicks included in Obamacare, the law actually increases the budget deficit. In recent weeks, we've also looked close at some of the various spending programs contained in the bill. The program to set up health insurance exchanges in all 50 states actually has no cap on spending. The HHS Secretary can spend as much as she feels is needed.

While we estimate that Obamacare could increase the national debt by $701 billion over ten years, there are potential cost overruns everywhere. The bill could end up being much higher.

What do we get with Obamacare? Even after full implementation, millions of Americans will still go without insurance. This week, the Health Subcommittee took a look at the CLASS program contained in the law. In two decades, this program will go bankrupt, prompting another taxpayer bailout. Over 80 percent of businesses say the law has increased their administrative burdens.

I know that we can do better, but government mandates and bureaucracy won't expand care and increase the quality of health care. The United States came to its position as the world leader in health care innovation because we have a dynamic system grounded in free market principles.

The market works when prices are transparent and consumers have the freedom to make choices. As I lead the House Energy and Commerce Health Subcommittee, I'll be putting forward solutions that empower individuals to make their own choices. This means market-based alternatives like allowing for interstate competition, pooling across state lines, medical malpractice reform, giving individuals the same tax treatment as businesses, and reforming Medicare so that it works better for doctors and patients.

We have to repeal Obamacare, but we must still reform a health care system that excludes far too many Americans. The best way to provide is not by government mandate, but by empowering individuals.

Rep. Joe Pitts is a Republican who represents Pennsylvania's 16th Congressional District in parts of Berks, Chester and Lancaster counties.