White House White Board: The Costs of Repealing Health Reform

Uploaded by whitehouse on 19.01.2011

Ms. Cutter: Hello, everybody.
My name is Stephanie Cutter.
I'm an Assistant to the President who has been working
as part of a team to help implement the new Health Care Law.
The Health Care Law was passed roughly 11 months ago and signed
into law.
The President made it clear then that he wanted us to move
quickly but carefully to implement the law.
There has been lots of talk recently about rolling back The
Affordable Care Act, repealing it.
And going back to the days of sky rocketing premiums and out
of control costs for businesses.
Today, I want to talk about the role of the Affordable Care Act
and reducing premiums for families and strengthening our
economy and creating jobs.
Today we're going to focus on two charts.
The first is the chart that shows the premium costs for a
family of four with the law and without it.
In 2014 when the law is fully implemented, families --
a family of four making $33,000 a year will be paying roughly
$1,500 per year in premium costs.
A family of four making $55,000 a year will pay roughly $5,000 a
year in premiums.
A family of four making $77,000 per year will pay roughly $8,000
in premiums.
And finally, a family making about $99,000 per year will pay
roughly $9,000 in premiums.
Now, if the law were repealed, these same families wouldn't
have these savings because at any income level,
a family of four in 2014 would be paying more than $11,000 per
year in premium costs.
As you can see, there are significant savings regardless
of your income under the Affordable Care Act vs. what
costs would be without health reform --
more than $11,000 per year for a family of four.
There are several reasons why these --
there are significant costs savings under the Affordable
Care Act for a family of four, and paying for their insurance premiums.
First is the cost of uncompensated care.
Because the Affordable Care Act brings more Americans into the
health care system, we're going to be paying less to care for
those without insurance.
Today, for a family of four, over $1,000 per year is added to
premiums to pay for the health care for people without
insurance -- people showing up in emergency rooms getting the
care that they need, but not being able to pay for it.
Those costs will be significantly reduced because
we're bringing all of those people back into the health
insurance system and getting them the care they need and not
putting the burden on those with insurance.
Another factor will be new exchanges established in 2014
that will allow millions of Americans to pull together,
compare prices, and get the best bargain.
The second reason we are reducing costs is because we are
getting better value for your health care dollar.
About a month ago, we put a rule in place under the law that is
called the Medical Loss Ratio Rule,
which means that your premium dollars --
80% of your premium dollars have to go to your health care
instead of administrative costs, or advertising,
or salaries at insurance companies.
That gives you better value for your health care.
The third reason we are seeing a reduction in premiums under the
Affordable Care Act is because we are strengthening premium
review laws.
And we're already seeing the results of that all over the country.
Not only do insurance companies have to justify their premium
increases, but we are strengthening laws in states all
over the country to review those premium increases to make sure
that they're justified and that consumers are being protected.
And, finally, the last provision under the law that helps reduce
costs for families are tax credits.
It includes a number of tax credits to reduce the cost of
health care for families and individuals to get them into the
health insurance market in an affordable way.
Now, we're going to wait to talk about not just the impact of
health care reform on families, but the impact of health care
reform on the economy and on job growth.
I'm going to flip to another chart.
Now I'd like to talk about the role of the Affordable Care Act
in our continued economic growth and job creation.
As a result of the Affordable Care Act,
employer costs are going to drop significantly when the law is
fully implemented.
According to a study by the Business Round Table,
in 2019 when the law is fully implemented and all of it's
benefits are in place, employers will save roughly $3,000 per
employee per year in health care costs.
That helps them to grow, to be more competitive,
to create jobs, and strengthen our economy.
Now, I want to talk about a chart by a Harvard economist
about the impact of repeal of the Affordable Care Act on job creation.
As you can see, there is a conservative estimate and less
conservative estimate on how many jobs this country will lose.
If the law is repealed, next year we could potentially lose
between 50,000 jobs and 100,000 jobs in 2012 alone.
Now, fast forward this all the way to 2019 when the law is
fully implemented, and we could be losing roughly 500,000 jobs
per year up to 800,000 jobs per year.
On average, that is 250,000 to 400,000 jobs per year.
In total, it's 2.5 million jobs to 4 million jobs this country
would lose if we repealed the Affordable Care Act.
Clearly, we cannot afford to go backwards.
We have to continue to go forward, implement the law,
strengthen our economy, and help grow our businesses.