Jindal: 'Over 1.2 Trillion Reasons to Repeal Obamacare

8/12/2019 Jindal: 'Over 1.2 Trillion Reasons to Repeal Obamacare'

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Regardless o their opinions onObamacare, the American peopleremain uniied on one key issue:When it comes to health care and

heath insurance, they are most worriedabout its rising costs. And on that ront,Obamacareby President Obamasown standardshas allen woeullyshort. Analysis conducted by AmericaNext quantiies the dollar impact behindPresident Obamas broken promise that hishealth plan would reduce costsprovidingover 1.2 trillion reasons why Obamacarehas ailed and should be repealed.

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During his 2008 campaign, then-Senator Obama promised on numerousoccasions that his plan would reducepremium costs or the average amily by$2,500 per year.1 His campaign sta wenteven urther; Jason Furman, the campaignseconomic policy directorand currentlythe Chairman o President ObamasCouncil o Economic Advisorsallegedthat we think we could get to $2,500 in

savings by the end o the first term, or bevery close to it.2

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Contrary to candidate Obamas promise,health insurance premiums have continued

to rise every year President Obama hasbeen in oice. Compared to a baselineyear o 2008the year Barack Obama waselectedthe average amily premium oremployer-sponsored coverage rose by morethan $2,500$3,671, to be precise.3 Overthat same period, Americans have aceda cumulative $6,388 per individual, and$18,610 per amily, in higher premium costsbecause President Obama ailed to achieve thereductions he promised rom his health plan.

T E I Individually, ever-rising insurancepremiums place a tremendous squeezeon a hollowed-out American middleclassbut collectively, these costs amountto a massive weight on an Americaneconomy struggling to grow. All told, theAmerican people have aced $1.2 trillion inhigher health insurance premiums due toObamacares ailure to deliver.

hese higher premiums aect economicgrowthby directing resources into thehealth care sector that could otherwise be

used to expand manuacturing, create newtechnologies, etc.

Given annual ull-time private sectorcompensation rates, the amount spent onhigher health insurance premiums equals

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o: Conservative Leaders

Congressional Candidates

Date: July 15, 2014

O . T R R O

1. A video compilation o candidate Obamas remarks on this issuerom the 2008 campaign is available at http://reedomeden.blogspot.com/2010/03/obama-20-promises-or-2500.html.

2. Kevin Sack, Health Plan rom Obama Spurs Debate, NewYork imes July 23, 2008, http://www.nytimes.com/2008/07/23/

us/23health.html?pagewanted=print.

3. Kaiser Family Foundation and Health Research and Educationalrust, Employer Health Benefits: 2013 Annual Survey,August 2013, http://kaiseramilyoundation.files.wordpress.com/2013/08/8465-employer-health-benefits-20132.pd,Exhibit 1.11, p. 31.


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the cost o an average o 3.9 million jobseach year, and nearly 6 million jobs in 2013alone. With the labor orce participationrate at 36-year lows, Obamacares ailure todeliver lower health insurance premiumsrepresents a urther drag impeding thegrowth o the economy and jobs.4

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Even as Obamacare has ailed to deliver

on its promise to reduce health insurancepremiumsraising premiums and healthcosts due to higher mandates, regulations,and new government spendingtheAmerica Next health plan can provide therelie rom rising costs that Americansneed and deserve. Rather than ocusing ona massive expansion and re-structuring othe health care system, the America Nextplan ocuses like a laser beam on reducinghealth costs. Analysis by independent,

non-partisan experts conirms the planseectiveness; when considering proposalssimilar to those in the America Next plan,

the Congressional Budget Oice concludedin 2009 that they would lower smallbusiness health insurance premiums by 7to 10 percent, and reduce individual healthinsurance premiums by 5 to 8 percent.5Compared to the premium increasesprojected under Obamacare, the reormsin the America Next plan could providethousands o dollars in real relie or amiliesstruggling rom high insurance premiums.6

4. Bureau o Labor Statistics, Labor Force Participation Rate series,http://data.bls.gov/timeseries/LNS11300000.

5. Congressional Budget Office, analysis o House Republicansubstitute amendment to H.R. 3962, November 4, 2009, http://cbo.gov/sites/deault/files/cbofiles/fpdocs/107xx/doc10705/hr3962amendmentboehner.pd.

6. Congressional Budget Office, Letter to Sen. Evan Bayhregarding premium effects o the Patient Protection andAffordable Care Act, November 30, 2009, http://cbo.gov/sites/deault/files/cbofiles/fpdocs/107xx/doc10781/11-30-premiums.pd; press release by House Ways and MeansCommittee Ranking Member Dave Camp, November 5,2009, http://waysandmeans.house.gov/news/documentsingle.aspx?DocumentID=153186.

Year Individual Increase Family Increase Economy-Wide

2009 $350 $1,266 $75,071,708,756

2010 $797 $2,257 $150,797,895,446

2011 $1,393 $4,049 $268,580,887,269

2012 $1,803 $5,248 $350,550,410,385

2013 $2,046 $5,790 $394,011,326,636

TOTAL $6,388 $18,610 $1,239,012,228,492

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Year Total Jobs Impact

2009 1,257,377

2010 2,443,456

2011 4,274,043

2012 5,473,929

2013 5,978,928

AVG. JOB LOSSES: 3,885,579

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In August 2012, Politiact examined theObama campaigns 2008 promise o lowerpremiums with the inexorable trend orising health costs:

In assessing this promise, we considerthe ollowing: An author o the$2,500 igure has disavowed its useas it relates to premiums alone. Anindependent health care analystprojects that premiums will go up orthe typical amily. he ederal agencyimplementing [Obamacare] did notprovide evidence that premiums willgo down or the typical amily. We rate

this a Promise Broken.7

he American people recognize thePresidents rhetoric as a promise broken too.Its why Obamacare should be repealed inits entirety, and why conservatives shouldocus on alternativessuch as those in theAmerica Next health planthat will lowerhealth costs and premiums, not raise themurther.

7. J.B. Wogan, Te Obameter : Cut the Cost o a ypicalFamilys Health Insurance Premium by up to $2,500 aYear, Politiact August 31, 2012, http://www.politiact.com/truth-o-meter/promises/obameter/promise/521/cut-cost-typical-amilys-health-insurance-premium-/.


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Insurance Coverage: he analysis utilizesCensus Bureau data regarding the numbero individuals with private, employer-provided health insurance and private,

directly purchased health insurance.he analysis urther uses data rom theDepartment o Health and Human ServicesMedical Expenditure Panel Survey (MEPS)to categorize the number o Americansholding amily insurance coverage, andthe number o Americans with sel-onlyinsurance plans. he average number oparticipants in a amily plan comes roma breakout o amily policies purchased bysize, as reported by ehealthinsurance.com.

Premiums: he analysis incorporatesdata rom the Kaiser Family Foundation/Health Research and Education rustannual survey o employer-provided healthinsurance to determine average premiums.For those Americans with direct-purchaseinsurance, premiums data come romannual reports on the Cost and Beneitso Individual Health Insurance issued by

ehealthinsurance.com.

he analysis assumes the $2,500 reductionin average amily premiums by the endo President Obamas irst term would beachieved as a $625 reduction each year (i.e.,$625 reduction in 2009, $1,250 reductionin 2010, $1,875 in 2011, and $2,500 in2012), with no additional reductionsthereater. he relevant reductions orsel-only plan premiums are $927 oremployer-provided insurance and $1,077or directly-purchased insurance over thecourse o President Obamas irst termbased on the ratio o individual to amilypremium costs in 2008, when the promisewas made.

Aggregate Estimates: he analysiscalculated total impact o the brokenpromise by multiplying the number oindividuals in each group (sel-only

employer-provided, amily employer-provided, sel-only direct-purchase, andamily direct-purchase) by the dierencebetween actual and promised premiums orthe particular group.

Jobs Estimate: o illustrate the economicopportunity costs o the broken promise,the analysis divided the aggregatepremium impact by the average employeecompensation or ull-time, private sectoremployees in the relevant year, as compiledby the Bureau o Labor Statistics EmployerCosts or Employee Compensation Survey.

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Jindal: 'Over 1.2 Trillion Reasons to Repeal Obamacare