Posted by
AHFF Geoff on Friday, March 19, 2010 8:47:12 PM
March 19th, 2010 by AHFF Geoff
President
Barack Obama gave another speech on Obamacare today in Virginia at
George Mason University, and such speech may be the most misleading
speech ever given by a US President
As the reality that Obamacare is going to pass the House of Representatives sinks in after the House’s 222-203 vote yesterday to approve the use of the “Slaughter Solution” (which “deems” the Senate bill “passed”), President Barack Obama took to the stage at George Mason University to make a speech
reminiscent of his campaign speeches in 2007-2008: short on actual
details and heavy on unrealistic, misleading claims with grandiose
rhetoric mixed in for good measure.
Sadly, the President made claims he almost certainly knows are false (you can keep your doctor, you can keep your health plan, Obamacare will reduce the deficit,
for instance) while omitting any explicit reference to the $500 billion
in cuts to Medicare (over the next 10 years) used to fund over half of
the nearly one trillion dollars in new entitlement spending under
Obamacare for the years 2014-2010 (major benefits do not begin until 2014), making today’s speech a contender for the most misleading Presidential speech in American history. Further, as leaked just now,
a Democratic leadership memo to congresspeople instructs them to lie to
the media and public about the substance behind the CBO preliminary
scoring while ignoring the realities of the additional $371 billion in
federal spending set to be enacted by Democrats as an add-on to
Obamacare known as the “doctor fix” immediately after the passage of
Obamacare.
Obama’s speech recycles most of the misleading talking points used
by Obama and the Democrats over the past year despite the debunking of
such claims by objective fact-checking organizations and simple
reality, as will be outlined below. Obama began by accurately stating
that the Obamacare debate is really “a debate about the character of our country.“ Obama then goes off the rails somewhat with this rhetoric, stating that the question of passing Obamacare is about
“Whether we can still meet the challenges of
our time. Whether we still have the guts and courage to give every
citizen, not just some, the chance to meet their dreams.”
In fact, Obamacare is about whether the United States will move
towards a new, radically altered system of strict federal government
control and oversight of the health care industry or whether the United
States will continue on its present path of substantially private-run
health care. The drive of Americans to meet the challenges of “our time”
is of course not epitomized by a massive increase in government
spending and control over the health decisions of Americans, regardless
of Obama’s expertly-crafted rhetoric
above. Indeed, Obamacare will fundamentally alter the character of
the United States, making most American citizens reliant upon a giant
federal government bureaucracy, instead of themselves, for the
provision of life-saving health care, forever altering the balance
between citizen and government in this country.
As the American health care system is now the envy of the world,
both in terms of innovation of new cutting-edge techniques and quality,
and most world leaders come here for major health care for themselves personally,
taking a giant step away from our present system via the massive new
federal intervention into the health care industry in Obamacare can
accurately be seen as risking America’s present dominance in the health
care field internationally. Of course, Obama’s speech references none of these issues nor the 80% of Americans that presently approve of their personal health care arrangements.
Obama then moves onto a familiar rhetorical trick of framing all
opponents to Obamacare as insurance industry hacks, stating that we
cannot “accept a system
that works better for the insurance companies than the American people”
while “their lobbyists are stalking the halls of congress as we speak”
and that “if this vote fails, the insurance industry will continue to
run amok.” These arguments are substantially false as the health insurance companies will actually benefit
in part from his bill as all healthy, young Americans who presently do
not waste their money on pricey, unnecessary health insurance policies
will now be forced to purchase same or face an IRS penalty and
enforcement of same by IRS collection efforts. Of course, Obama’s speech
does not reference this penalty on individuals, nor the additionally
penalty on employers who do not provide benefits, in his speech today.
At
this point, President Obama and Dems in Congress appear to have made
more deals than Monty Hall ever did in "Lets Make a Deal"
Obama then makes a wildly inaccurate statement:
So the only question left is this: are we
going to let the special interest win once again? Or are we going to
make this vote a victory for the American People!
This claim, of course, ignores the fact that, at best, only about 35-40% of Americans support the passage of the President’s comprehensive health care plan into law, making its coming passage hardly a “victory” for the American people, 80% of which are presently satisfied
with their medical care. Also ignored by this Obama claim that his
bill is being opposed by “special interests” is the fact that Obama
himself has made backroom deals with the large drug companies (“Big Pharma”), American Medical Association, the hospitals, the AARP, the unions, and even some insurance companies
as the past year of backroom dealmaking between the Obama
Administration and special interest groups has unfolded. The level of
“audacity” required to claim his bill is not backed by special
interests while he himself made deals with essentially every major
special interest in the health care industry during meetings in his
White House is substantial and this Obama claim is quite jarring when
compared to the above-referenced publicly available facts.
Obama then continues in his speech to claim, as he has many times since the summer of 2009,
that “the time for reform is right now. Not a year from now, not 5
years from now not 10 years from now not 20 years from now” while noting that
“we have had a year of hard debate, every proposal has been put on the
table, every argument has been made, we have incorporated the best
ideas from Democrats and from Republicans into a final proposal that
builds on the system of private insurance that we have.” These claims,
of course, ignore the fact that the Republican ideas to reduce health
care costs via tort reform and allowing increased competition between
insurers across state lines are ignored by his legislation and those
issues also go unmentioned in Obama’s speech today.
Obama then denies that his plan is “radical change” (somewhat
contradicting his earlier comments extolling the major changes to come
from his bill) and states that “what we’re talking about is common
sense reform, that’s all we’re talking about.” Now, Obama unleashes three of the greatest lies ever told about Obamacare:
If you like your doctor, you’ll be able to
keep your doctor. If you like your plan, you’ll be able to keep your
plan. Because I don’t believe we should give the government or the
insurance companies more control over health care in America. I believe
it’s time to give you – the American people – more control over your
health insurance.
Of course, the massive federal intervention into the American health
care system will lead to many Americans having their present health
care arrangements substantially altered, whether by a doctor who
retires rather than face the increased costs of federal control, or by
the new strict federal rules that require certain benefits to be
covered, or by an employer who dumps their benefits coverage and just
pays the fine to avoid the hassle, or by the elimination of nearly 10
million seniors “Medicare Advantage” coverage. amongst other ways such
personal health care arrangements will be altered.
As for Obama’s claim that he does not want to “give the government
or the insurance companies more control over health care” and instead
wanting to give the “American people” “more control” over their health
insurance, such a statement simply defies all logic and available facts
known about Obamacare as many new federal rules and regulations will
be implemented and enforced on the American health care system, hence
increasing federal government control of same, as intended by its
authors. Of course, Obama’s speech avoids any discussion of the massive increase in the federal government’s bureaucracy
in his remarks today and instead Obama implausibly denies that his bill
will increase federal power over the health care industry, as it is
written and intended to do. Also unmentioned in Obama’s speech is the
15,000 new IRS employees
to be hired to enforce the new Obamacare personal and company fines and
taxes in Obamacare as well as cost of new federal health bureaucrats to
“administer” Obamacare.
Obama then summarizes the parts of his nearly 3000 page bill that he
wants to talk about, stating his Obamacare plan does three things:
first, it “ends the worst practices of insurance companies” as
implementing “a patients’ bill of rights on steroids”; second, “[f]or
the first time, small business owners and others…will have the same
kind of choice for private health insurance that members of congress
give to themselves”; and third that it “brings down the cost of health
care for families, businesses and the federal government.”
While the President does accurately state that insurers will be
required to issue insurance policies to all those who have preexisting
conditions that cost hundreds of thousands if not millions to treat
every year at a cost that is not above a healthy person’s policy, the
remaining two claims in his formulation are unequivocally false. All
Americans will certainly not have coverage like members of Congress
after Obamacare passes, this is simply a lie. Elite politicians will
continue to receive gold-plated health care plans whether Obamacare
passes or not, and the average American will either be fined for not
purchasing such expensive coverage or the federal government will their
own tax dollars (or borrowed dollars) pay to provide coverage made more
expensive by Obamacare’s provisions.
Despite this reality, Obama makes this ridiculous claim during his
discussion of his second main point that Americans will receive the
same coverage as Congress:
“We will offer you tax credits to do so –
tax credits that add up to the largest middle class tax cut for health
care in history.”
President Barack Obama's speech today on Obamacare reminds some of concepts referenced George Orwell's classic book 1984
Amazingly, Obama terms his planned new spending, in his own words,
of at least a “100 billion a year” on a new federal health care
entitlement program via Obamacare, as the “largest middle class tax cut
for health care in history.” Such an explicitly misleading
presentation of the new entitlement programs in Obamacare certainly
recalls the works of George Orwell, such as the book 1984, and this Orwell quote in the aftermath of World War 2 in 1945:
People can foresee the future only when it
coincides with their own wishes, and the most grossly obvious facts can
be ignored when they are unwelcome. . . To appreciate the danger of
Fascism the Left would have had to admit its own shortcomings, which
was too painful; so the whole phenomenon was ignored or misinterpreted,
with disastrous results…The most intelligent people seem capable of
holding schizophrenic beliefs, or disregarding plain facts, of evading
serious questions with debating-society repartees, or swallowing
baseless rumours and of looking on indifferently while history is
falsified.
Above and beyond the false and misleading claims above, President
Obama’s ridiculous claim today that Obamacare is “one of the biggest
deficit-reduction plans in history” is definitely the most odious and
explicitly false statement made by President Obama in his speech today,
which in our view ranks as one of the most misleading Presidential speeches in American history. Of course, the giant new entitlement spending in Obamacare (at least 100 billion a year
according to Obama today) will not reduce the yearly federal budget
deficit, and Obama knows it. However, Obama and the Democrats keep
repeating this claim, even claiming it is “one of the biggest
deficit-reduction plans in history” based on entirely misleading
numbers from the CBO.
It is true that the CBO issued a preliminary report on the latest
nearly 3000 page long Obamacare plan today in which the CBO states the
bill will cost about a trillion dollars over 10 years (only 6 years of
benefits, but 10 years of taxes and Medicare cuts) while allegedly
“saving” over a hundred billion in deficit spending over those first 10
years and over a trillion in deficit spending over 20 years. However,
the CBO is forced to score the language and assumptions provided to it
by the Democrats in charge of Congress, and cannot interject the CBO’s
own opinion as to whether those assumptions will bear out or whether
subsequent Congresses will change the language.
The first major mispresentation in the CBO’s claim of deficit
savings is the failure to include the “doctor fix” in the CBO’s scoring
of OBamacare. The CBO’s claim of deficit spending assumes a 21% cut in
doctor and hospital fees, as present law requires. That law, a 1997 act
to reduce Medicare spending over time, has been waived every year since
then by Congress under pressure from the AMA lobby and others. The
Obama Administration, of course, made a little-publicized deal between Obama and the AMA in July 2009
to purchase their support for Obamacare by promising a long term
“doctor fix” as a part of the comprehensive health care reform
procedure, as reported by Politico then:
In the bill, Democrats provide $245 billion
to eliminate an annual shortfall in payments to doctors under Medicare.
Democrats resolved this annual headache, in large part, to win crucial
support for the bill from the American Medical Association. That money
currently counts against the overall costs of the bill, but Democrats
have introduced legislation that would remove remove this obligation
from federal deficit.
Whether you take the $245 billion dollar figure over 10 years quoted
here by Politico, or the $371 billion dollar figure reported by
Politico today (before they pulled the story under White House
pressure) for the cost in federal spending of a long term doctor fix,
the claimed $138 billion in deficit “savings” over the next 10 years
completely disappears and Obamacare ends up being in the red, even
putting aside all the other budgetary tricks we will outline below.
Indeed, the CBO just issued an update to their report,
in response to GOP Congressman Paul Ryan’s (R-WI) letter, admitting
that Obamacare will add to the deficit once the doctor fix is in place,
as promised by both President Obama to the AMA to buy their support and
by Nancy Pelosi today in her news conference:
You asked about the total budgetary impact
of enacting the reconciliation proposal (the amendment to H.R. 4872),
the Senate-passed health bill (H.R. 3590), and the Medicare Physicians
Payment Reform Act of 2009 (H.R. 3961). CBO estimates that enacting all
three pieces of legislation would add $59 billion to budget deficits
over the 2010–2019 period.
Of course, Obama was well aware of these facts regarding the lack of
deficit savings when the doctor fix is factored into Obamacare, and
Obama still explicitly stated today that his plan will be “one of the biggest deficit-reduction plans in history.”
This Obama claim, a willful misrepresentation of the true cost of his
program by not “counting” the doctor fix that Obama himself promised to
the AMA to purchase their support for his program in July 2009, brings
to mind the Orwell quote above that “most intelligent
people seem capable of holding schizophrenic beliefs, or disregarding
plain facts, of evading serious questions with debating-society
repartees, or swallowing baseless rumours and of looking on
indifferently while history is falsified. Sadly, the
explicit misrepresentation of the President in claiming that Obamacare
is “one of the biggest deficit-reduction plans in history” is not
solely based on the doctor fix lie, but many others as well.
Even the NYT, via its Obama-worshipping columnist David Brooks, admits that the Obama claim of deficit savings is an explicit lie, and the CBO report of deficit “savings” is simply the product of legislative gimmicks by the Democrats:
They’ve stuffed the legislation with
gimmicks and dodges designed to get a good score from the Congressional
Budget Office but don’t genuinely control runaway spending.
There is the doc fix dodge. The legislation pretends
that Congress is about to cut Medicare reimbursements by 21 percent.
Everyone knows that will never happen, so over the next decade actual
spending will be $300 billion higher than paper projections.
There is the long-term care dodge. The bill creates a
$72 billion trust fund to pay for a new long-term care program. The
sponsors count that money as cost-saving, even though it will
eventually be paid back out when the program comes on line.
There is the subsidy dodge. Workers making $60,000 and
in the health exchanges would receive $4,500 more in subsidies in 2016
than workers making $60,000 and not in the exchanges. There is no way
future Congresses will allow that disparity to persist. Soon, everybody
will get the subsidy.
There is the excise tax dodge. The primary cost-control
mechanism and long-term revenue source for the program is the tax on
high-cost plans. But Democrats aren’t willing to levy this tax for
eight years. The fiscal sustainability of the whole bill rests on the
naïve hope that a future Congress will have the guts to accept a
trillion-dollar tax when the current Congress wouldn’t accept an
increase of a few billion.
There is the 10-6 dodge. One of the reasons the bill
appears deficit-neutral in the first decade is that it begins
collecting revenue right away but doesn’t have to pay for most benefits
until 2014. That’s 10 years of revenues to pay for 6 years of benefits,
something unlikely to happen again unless the country agrees to go
without health care for four years every decade.
There is the Social Security dodge. The bill uses $52
billion in higher Social Security taxes to pay for health care
expansion. But if Social Security taxes pay for health care, what pays
for Social Security?
There is the pilot program dodge. Admirably, the bill
includes pilot programs designed to help find ways to control costs.
But it’s not clear that the bill includes mechanisms to actually
implement the results. This is exactly what happened to undermine
previous pilot program efforts.
When an Obama-loving NYT columnist who is literally in love with President Obama, for reasons such as his “his perfectly creased pant“,
admits that Obama and the Democrats have stuffed Obamacare with no less
than seven “dodges” to obtain a favorable, yet explicitly false, CBO
scoring, centrists and independents know that such claims of deficit
“savings” must be false. Finally, on top of the seven listed “dodges”, according to the CBO, and not included in the “scoring”, is the fact that the CBO “double counts” the Medicare cuts as both helping Medicare’s solvency and paying for new spending while another $50 billion in costs
to administer the massive new federal entitlement programs and federal
controls over the health care industry contained in Obamacare:
In its March 11, 2010, cost estimate for
H.R. 3590, the Patient Protection and Affordable Care Act (PPACA), as
passed by the Senate, CBO indicated that it has identified at least $50
billion in specified and estimated authorizations of discretionary
spending that might be involved in implementing that legislation. The
authority to undertake such spending is not provided in H.R. 3590; it
would require future action in appropriation bills.
Finally, the President also plays misleading rhetorical claims
regarding the “cost controls” in Obamacare. The only significant cost
control mechanism in the Obamacare package (as tort reform and
interstate competition between insurers are omitted) is the “cadillac
tax” on gold-plated health insurance policies, however, that tax was
pushed off until 2018 because of pressure from unions who’s members
have such insurance plans. Accordingly, in order to make the ridiculous
claims of deficit savings referenced above, Obama pretends that
Congress in 2017 will not waive the “cadillac tax” under political
pressure, as he has just done with the delay until 2018 and as every
Congress has done every year since the 1997 Medicare cost-cutting legislation
(which is the source of the “doctor fix” problem in the first place).
Indeed, if Obama with a huge Congressional majority cannot enact a
cadillac tax within the next 8 years, why should anyone have any
confidence that Congress 2017 will do so? Obama, and everyone else in
Washington, knows this is an unrealistic fantasy, but Obama still made
these ridiculous claims in his historically misleading speech today.
Finally, just as Congress has waived the planned reductions in fees for doctors and hospitals every year since 1997,
future Congresses in all likelihood will also waive the planned nearly
$500 billion in cuts to Medicare over the next 10 years to avoid a
backlash by elderly voters who fear benefit cuts and pressure from
medical provider lobbies. The cuts to Medicare are over half of the
revenue Obama plans to use to fund the new health care entitlement
spending of $100 billion a year, and everyone in Washington knows these
cuts will never happen in full. Obama’s speech,
of course, makes no reference to the “doctor fix” or the Medicare cuts
themselves which form half of the revenue for his programs, but Obama certainly does claim
that his plan is “one of the biggest deficit-reduction plans in
history”, and all of his fellow Democrats are repeating similar claims
all over the dial as this article is written. Such intentionally
misleading statement by American leaders again remind centrist and
independent Americans of the words of George Orwell as referenced
above, reinforced by Obama’s ridiculous claim his “reduced” health care
costs from Obamacare will mean that employees
A final Obama quote from today
sums up the fraudulent nature of his speech, as he claims “more than $1
trillion” in deficit savings, considering the facts noted above. This
comment is the only reference to the $500 billion in cuts planned for
the Medicare system, and of course Obama does not reference Medicare by
name:
And by the way, if you’re curious, well, how
exactly are we saving these costs? Well, part of it is, again, we’re
not spending our health care money wisely. So, for example, you go to
the hospital or you go to a doctor and you may take five tests, when it
turns out if you just took one test, then you send an e-mail around
with the test results, you wouldn’t be paying $500 per test. So we’re
trying to save money across the system. (Applause.) And altogether, our
cost-cutting measures would reduce most people’s premiums. And here’s
the bonus: It brings down our deficit by more than $1 trillion over the
next two decades.
The pure idiocy of Obama’s example of emailed tests as his primary
cost-cutting mechanism to cut nearly $500 billion from Medicare speaks
for itself. Obama gave his speech to an auditorium of students at
George Mason University, as such young college students are Obama’s
last remaining base of support with his approval
slipping underwater, as more Americans disapproving than approving of
his performance in all major polls released this week. One can only
hope that America does not have to find out the hard way, via renewed
economic instability emanating from runaway deficit spending as
envisioned by the actual provisions of Obamacare, not to mention the
loss of medical innovation and job creation from the health care
industry and the historical alteration of the relationship between
American citizens and the federal government, that the claims made in
Obama’s speech today are wholly false and that his speech was likely
one of the most misleading speeches ever given by a sitting American
President.