More Delays and More Bad News for Obamacare

 

Sen. Mike Johanns

If you needed any more proof that Obamacare is not going to work, the last couple weeks should certainly clear the air.
Last week, the President once again unilaterally delayed Obamacare’s requirements that businesses provide health insurance for their employees, effectively ignoring the very law that he has championed for much of his tenure. This is the second straight year the Administration has put off the employer mandate, and yet another delay in a series of delays, extensions and waivers that have overshadowed Obamacare’s sputtering launch.
This move clearly shows the President recognizes the harm this law is causing for businesses, but many families and individuals are already reeling from increased insurance premiums, higher out-of-pocket expenses and the reality that they may not be able to keep their preferred doctor. Cherry picking which parts of the law to ignore is not fair to the folks who are already coping with its burdens. And delaying the pain for others until after the next election is no solution.
Ignoring the employer mandate has not alleviated other problems on the horizon because of the law.  A recent report by the nonpartisan Congressional Budget Office (CBO) estimates the nation’s workforce will reduce by the equivalent of 2.5 million full-time workers in just 10 years with Obamacare on the books. That figure is nearly three times greater than CBO’s analysis when the law was passed. It’s hard to believe that in a struggling economy, when unemployment was hovering around 10 percent, enough lawmakers were ready to support a law that would cost hundreds of thousands of jobs. But these revised estimates paint an even bleaker picture.
The report predicts Obamacare subsidies will “reduce incentives to work” at a time when our economy depends on job growth. Additionally, when the employer mandate is fully implemented, the report predicts the cost of the employer penalty will be passed onto workers in the form of lower wages and shrunken benefits. Many workers are already trying to cope with reduced hours as businesses decrease their full-time payrolls to avoid Obamacare requirements.
But what about those who are gaining coverage from Obamacare? Some of my colleagues are reporting that 10 million have coverage today that they wouldn’t have absent Obamacare. Non-partisan fact checkers have debunked that talking point, calling the claim “simply ridiculous.” I’ve heard from a few Nebraskans who are benefitting from the law, but many more will be left without coverage.
CBO estimates 31 million Americans will still be without coverage in 2024—a decade into the law’s implementation. That’s roughly one in nine Americans. CBO also predicts between 6 and 7 million fewer Americans will receive coverage through their work than would without the law, even with Obamacare’s employer mandate.
All of this begs the question: Is Obamacare worth the $2 trillion investment?
I appreciate and support goals to help our most vulnerable Americans receive access to health care. This can be accomplished through proposals that increase competition and lower costs like expanding health savings accounts, having insurers compete across state lines, and allowing small businesses to pool together for lower rates. It’s time to scrap the broken, government-centered Obamacare model and pass these patient-centered reforms that will help us achieve our goal of improving America’s health care system.