Obamacare vs. Medicare
Mar 10, 2014, Vol. 19, No. 25 • By
JEFFREY H. ANDERSON
One of President Obama’s greatest
political challenges has been hiding the fact that Obamacare is largely financed by siphoning huge sums of money out
of Medicare. In particular,
Obamacare cuts—or guts—Medicare Advantage, the popular program that allows seniors
to get their Medicare benefits through private insurers. In fact, it’s only
these Medicare Advantage cuts that allow the Congressional Budget Office to pretend that Obamacare won’t raise
deficits—an implausible notion that polling indicates only a very small
percentage of particularly credulous citizens believe.
Late on Friday, February 21, in a
148-page, after-hours communication, the Obama administration declared that
cuts to Medicare Advantage, long put off, will finally take effect in 2015.
Predictably, and understandably, many conservatives responded by criticizing
the announcement.
The cuts are bad in and of
themselves, but cuts to the program have been a part of Obamacare’s written
text from day one. So the real question is not whether Obamacare will cut
Medicare Advantage; it’s whether the Obama administration—which doesn’t want
those cuts to become evident when Medicare’s open-enrollment period begins on
October 15, less than three weeks before Election Day—will take unilateral,
lawless executive action to stop the cuts from taking place. That’s what has
happened to date.
In the lead-up to Obama’s
reelection, he and his administration weren’t satisfied with having mailed out
full-color, taxpayer-funded propaganda brochures and run millions of dollars’
worth of taxpayer-funded TV ads featuring Andy Griffith, all touting Obamacare
to seniors. They knew that such nonsense would quickly be exposed if
Obamacare’s prescribed Medicare Advantage cuts were to take effect: Seniors
would have started noticing those cuts on October 15, 2012.
The Government Accountability
Office identified this “demonstration project” as a sham. The GAO highlighted
the project’s myriad “design shortcomings,” including its excessive focus on
2012, its awarding “most” of its “quality bonus[es]” to plans that didn’t
perform at above-average levels, and its lack of a control group. The GAO, not
known for its bluntness, concluded by writing that Health and Human Services
Secretary Kathleen Sebelius “should cancel” the project and perhaps consider
conducting “an appropriately designed demonstration” in the future. A few
months later, the GAO reiterated that all demonstration projects “must meet the
criteria set forth” in law, which the Obama administration had “not
established” it had done, leaving the GAO “concerned.”
At the time, Nebraska Republican Ben
Sasse, HHS assistant secretary for planning and evaluation until January 2009
and now a Senate candidate, said, “If a presidential administration can simply
make up the authority to make law and give itself the power of the purse to
implement its new law—which not only isn’t designed to make existing law work
but is actually against the purpose of existing law—why do we need a Congress?”
Sasse added, “In scope and intention, this is something completely new, and if
it’s allowed to establish precedent, the only limit on what future
administrations could spend money on, or how much they could unilaterally
spend, would be their own electoral calculations about what they could get away
with.”
Were Medicare demonstration
projects typically so huge or so lacking in legal justification pre-Obama?
Actually, they were usually small and uncontroversial. The GAO said that from
1995 through the onset of Obama’s ploy—a period spanning the bulk of the Clinton administration,
all of the George W. Bush administration, and beyond—85 Medicare demonstration
projects were conducted. Obama’s $8,300,000,000 gambit cost more than all 85 of
those prior projects combined.
Now, two years later, the
“demonstration project” is over, and Medicare Advantage is back on the chopping
block. The CBO says that if Obama’s centerpiece legislation is implemented as
written, about $200 billion will be funneled out of Medicare Advantage and into
Obamacare over the next decade. Like low-premium health plans and their
accompanying health savings accounts, both of which Obamacare aims to diminish
or eliminate, Medicare Advantage has proven extremely popular: Its enrollment
more than doubled, according to the New York Times, in just the past eight
years. With over 15 million seniors now in the program—more than a quarter of
all Medicare beneficiaries—Obama-care’s $200 billion raid amounts to about
$13,000 per current Medicare Advantage enrollee.
But Medicare Advantage is hardly
the only part of Medicare that is scheduled to be looted by Obamacare. The CBO
projects that, over the next decade, about $1 trillion that would otherwise
have been spent on Medicare will be rerouted to Obamacare. That represents more
than 10 percent of Medicare’s entire projected funding—which helps explain why
Medicare’s Office of the Actuary has projected that, by 2020, Medicare will
reimburse doctors and other health care providers at lower rates than Medicaid
will. Imagine if Obama had pitched Obamacare by saying, Folks, we’re going to
pass health reform, and to pay for it, we’re going to divert more than 10
percent of the money that’s projected to be spent on Medicare. That pitch would
have made Jimmy Carter’s “malaise” speech look like a triumph of political
rhetoric. But, as the CBO notes, that’s exactly what Obamacare will do.
Medicare
Scott Armstrong
is a member of the Medicare Payment
Advisory Commission, and a director at the America's Health Insurance Plans.
Note: SHOCKING VIDEOS: Pete Sessions Supports Amnesty to
‘Accommodate’ Illegal Aliens for ‘Right Reasons’ (Past Research for the America's
Health Insurance Plans)
Sunday, March 2, 2014
America's
Health Insurance Plans is a major player for the health care debate.
Center
for American Progress was a funder for the America's Health Insurance Plans.
Tom Daschle is a director at the Center for American Progress, was a nominee for health and human services secretary for the Barack Obama administration, a special policy adviser at Alston & Bird, and a 2008 Bilderberg conference
participant (think tank).
Centers
for Medicare & Medicaid Services is a division of the U.S. Department of Health and Human Services.
Timothy P. Trysla
is a partner at Alston & Bird, and
was a senior policy adviser to the administrator for the Centers for Medicare & Medicaid Services.
Thomas A. Scully
is a senior counsel at Alston &
Bird, and was an administrator for the Centers
for Medicare & Medicaid Services.
Donald M. Berwick
was an administrator for the Centers for
Medicare & Medicaid Services, and is a senior fellow at the Center for American Progress.
George
Soros was a supporter for the Center
for American Progress, and the chairman for the Foundation to Promote Open Society.
Foundation
to Promote Open Society was a funder for the Center for American Progress, and the Committee for Economic Development.
Donna
S. Morea was a trustee at the Committee
for Economic Development, and the EVP for the CGI Group Inc.
CGI Group Inc.
was the Obamacare contractor that
developed Healthcare.gov web site.
Obamacare
is Barack Obama’s signature policy
initiative.
Kenneth M.
Duberstein was the VP for the Committee
for Economic Development, and is the chairman & CEO for the Duberstein Group, Inc.
Duberstein
Group, Inc. is the lobby firm for the America's
Health Insurance Plans.
Scott Armstrong
is a director at the America's Health
Insurance Plans, and a member of the Medicare
Payment Advisory Commission.
Dan
L. Crippen was the SVP for the Duberstein
Group, Inc., and a director at the Congressional
Budget Office.
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