It Must Be Repealed and Replaced to Stop the Harm Being Inflicted on Americans
WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas) tonight debated Sen. Bernie Sanders (I-Vt.) in a CNN Town Hall regarding the future of Obamacare. President Obama’s Affordable Care Act was sold to the American people as a solution to steadily increasing healthcare costs and insurance premiums, and a means to provide health insurance to all Americans. While the government did succeed in mandating that all Americans purchase health insurance (or be fined), the law has increased costs, decreased access, taken away patients’ choices in health care, and failed to improve health outcomes.
In other words, Obamacare has failed to deliver on its promises. In order to stop the harm being done to hardworking Americans, it must be completely repealed and replaced with market-based reforms that will expand access, provide greater choices, and lower the cost of care and insurance.
Obamacare has failed the American people. It has:
- Increased taxes
- Obamacare imposed over $1 trillion in tax hikes (CBO).
- Enriched insurers while saddling families with greater costs
- In 2008, the combined annual profits of America’s ten largest health insurance companies were about $8.3 billion. Under Obamacare, in 2015 the ten largest health insurers’ annual profits rose to almost $15 billion, an 80 percent increase
- Meanwhile, from 2008 to 2016, average annual employer-sponsored family premiums increased 43 percent, from $12,680 to $18,142. The average worker share over the same time period increased 57 percent, from $3,354 to $5,277. And from 2008 to 2015, average family deductibles on the individual market increased 181 percent, from $2,760 to $7,760.
- Increased health care spending
- Total health care spending in the US was 2.4 trillion or $7,868 per person in 2008 (Kaiser Family Foundation). In 2013, it was $3.2 trillion or $9,900 per person. CMS That’s an $800 million increase in spending.
- Share of GDP devoted to health care spending was 16.6 percent in 2008 (Kaiser Family Foundation). In 2015, it was 17.5 percent (The Fiscal Times)
- Increased insurance deductibles
- 155 million Americans – including over 13 million Texans – with job-based health care coverage are facing higher premiums and higher deductibles (Kaiser Family Foundation).
- From 2013-2017, the average deductible for individuals on the individual market has increased 30 percent ($3,319 to $4,328). eHealth
- From 2013-2017, the average deductible for families on the individual market has increased 97 percent ($4,230 to $8,352). eHealth
- Increased insurance premiums
- From 2013-2017, average nationwide monthly premiums for individuals on the individual market have increased 99 percent ($197 to $393). eHealth
- From 2013-2017, average nationwide monthly premiums for families on the individual market have increased 140 percent ($426 to $1,021). eHealth
- From 2010-2016, average family premiums on the employer-sponsored market have increased almost 32 percent (Kaiser Family Foundation)
- Decreased choice and competition
- 70 percent of U.S. counties have only one or two insurers offering coverage on the exchange in 2017. The Heritage Foundation
- The 2017 exchanges are 45 percent less competitive than the individual market was before Obamacare. The Heritage Foundation
- Before Obamacare, 18 insurers participated in Texas. Today, 10 insurers are participating in the Texas exchange, a 44 percent decrease.
- 86 percent of Texas counties have only one or two insurers selling exchange coverage.
- Broken Promises
- President Obama promised that premiums would decline by $2,500 per year; instead, by 2015 average premiums in job-based coverage increased by $3,775. Kaiser Family Foundation
- Politifact named President Obama’s promise that “If you like your health care plan, you can keep it” under Obamacare the Lie of the Year for 2013. Obama repeated this lie at least 37 times. Politifact