I’ll address this later, for now…read and talk amongst yourselves!
Pelican Institute for Public Policy
Press Release …..
New Study Details Cost of Proposed Health Care Reforms
Vitter: “State Tax Increases All But Certain” If Proposals Implemented
New Orleans, LA – Sep 14, 2009 Proposed federal health care reform built on President Barack Obama’s core principles would impose an additional financial burden of $4,427 on every man, woman, and child in Louisiana over the next decade, according to a report released today by the Pelican Institute for Public Policy.
The report, “The Prognosis for National Health Insurance: A Louisiana Perspective”, was debuted at a press conference featuring U.S. Senator David Vitter, former American Medical Association president Dr. Daniel “Stormy” Johnson, small business owner Mike Mitternight, and local restaurant owner Dickie Brennan.
“We need reform to address the unsustainable growth in costs,” said Pelican Institute president Kevin Kane. “But the reforms being proposed by President Obama do not reckon with the underlying problems in our current system. In fact, they take us further down the wrong path and promise to increase health care expenditures and medical price inflation. Further, these reforms will lead to growing deficits and/or higher taxes.”
Expanding Government’s Role Will Escalate Costs, Fuel Deficits
PIPP Logo The report was produced by Arduin, Laffer & Moore Econometrics, the research firm of internationally renowned economist Dr. Arthur Laffer. It models the general concepts included in the health care reform proposals by President Obama and the congressional leadership.
The end results of the proposed reforms would include: an increase in national health care expenditures by an additional 8.9 percent by 2019; an increase in medical price inflation by 5.2 percent above what it would have been otherwise by 2019; an increase in total federal expenditures by 5.6 percent over the next decade, creating an additional $285.6 billion deficit in 2019 assuming the extra expenditures are not financed by a tax increase; and a reduction in U.S. economic growth in 2019 by 4.9 percent.
“This report really points to major concerns surrounding the passage of the President’s national health plan,” said Vitter. “Besides stating that Louisiana’s economic growth would shrink by 4.3 percent by 2019, the report also notes that the more detrimental effect on Louisiana may be related to Medicaid and providing for lower-income Louisianans. Under the President’s plan, states like Louisiana will pick up more Medicaid responsibilities, meaning that state tax increases are all but certain.”
“This report focuses primarily on what would happen if President Obama’s reforms were implemented,” said Kane. “But it also outlines sensible reforms that would introduce better incentives for patients and providers. These include policies that would encourage individual ownership of insurance policies, leveraging Health Savings Accounts (HSAs), allowing interstate purchasing of insurance, reducing the number of mandated benefits, reallocating much of Medicaid spending into simple vouchers, eliminating unnecessary scope-of-practice laws, and reforming the tort liability laws. We encourage the Louisiana congressional delegation to study this report and take health care reform in a new direction.”
Click Here to Read the Full Report
About the Pelican Institute for Public Policy
The Pelican Institute for Public Policy is a nonprofit, nonpartisan research institute dedicated to the principles of individual liberty, the free market and limited, accountable government. Through research papers, policy briefings, commentaries and conferences, the Institute seeks to educate and inform Louisiana’s policymakers, news media and general public.
Pelican Institute for Public Policy