Mr. President, I come to the floor today to speak to three amendments that I have either submitted or plan to submit on the matter before the Senate here today, the repeal and hopefully complete…
Mr. President, I come to the floor today to speak to three amendments that I have either submitted or plan to submit on the matter before the Senate here today, the repeal and hopefully complete replacement of ObamaCare.
There are two issues that concern me the most and that I have fought for and debated.
In this process, how can we bring down gross premium levels that have skyrocketed under ObamaCare? According to HHS, on a national average, premiums have increased 105 percent. They have more than doubled. And of course it is far worse than that in many places.
Janice Fenniman was a 62-year-old woman when I met her a couple of years ago. Prior to ObamaCare, she was paying $276 per month. In 2016, just 2 years into the implementation of ObamaCare, she was paying $786 per month. Last time I talked to her, she would be paying over $900 a month, but the problem is, she can't afford it, so she is just taking a risk and going uninsured until she reaches the age of 65 and is qualified for Medicare.
The other issue I want to speak about is literally the unsustainable nature of Medicaid. The other thing I fought for is reducing the disparity between States that have expanded Medicaid and those that haven't, like Wisconsin, that have done a great job managing Medicaid. My concern is that Medicaid expansion, which is directed toward able- bodied, working-age, childless adults, is funded by the Federal Government 90 to 100 percent, depending on which year you are looking at, versus traditional Medicaid targeted toward--40 percent of Medicaid spending is targeted toward children, the disabled, and the elderly. Medicaid expansion is putting at risk the sustainability of traditional Medicaid. So my three amendments deal with those issues, and let me first take up the first two amendments dealing with premiums.
I have a few charts. Unfortunately, in Washington, DC, there is not a whole lot of people who understand the problem-solving process. Let me describe it briefly.
It starts with information. It starts with defining the problem, doing a root cause analysis, having the courage to recognize and acknowledge the truth in reality. Based on that reality, you try to set achievable goals. From my standpoint, the achievable goals should be to bring down gross premium levels back to a reasonable level where they were prior to the implementation of this completely faulty architecture of ObamaCare and preserving and sustaining traditional Medicaid.
This chart, I realize, is a little busy, but let me walk you through it. This shows the trend line of ObamaCare, in terms of what we have experienced from 2010 to 2017, plus the estimates of the Congressional Budget Office as it relates to the Senate bill we voted on yesterday.
Let's take a look at this. Back in 2010 to 2013, you see the trend line here. In 2013, on the national average, an individual is paying about $232 per month for healthcare. Now had that trend line just continued, had we not passed this faulty architecture of ObamaCare, we could reasonably expect that in about 10 years, premiums for an individual being about $303 per month.
What has happened--again, according to HHS--those premiums have gone
from $232 per month to this year $476 per month on a nationwide average. That is a 105-percent increase.
One of the problems with CBO scoring is it is difficult to interpret. What I tried to do for my colleagues is put in chart form exactly what CBO is saying. In their scoring of the Senate bill, they said next year premiums would be 20 percent above the current baseline. Of course, they don't give you the baseline, and they don't really give you the premiums so I had to try to cobble those together. This is pretty accurate. That would put premiums next year at about $546 versus $232 about 4 years ago. The following year it would be 10 percent above the baseline. So it would start decreasing with the Senate bill, and the third year would be 30 percent below baseline. You would see a dramatic drop. You would be at $441 per month. Then the trend over the next 7 or 8 years would be 20 percent below the baseline, $574.
Take a look at this. Had we never passed ObamaCare, premiums should be in the $300-a-month level versus $574. This is the damage done by ObamaCare, and this, I am very sad to report, is not what we are adequately addressing because we do not have the courage to do the root cause analysis and be honest with the American public about what is happening.
Let me read you a dictation from the family I just heard from yesterday. Sheri and Vern Kolby, whom we heard about from one of our State legislators who contacted one of my regional directors. He sent me an email telling me their story.
I called Sheri last night. She didn't have time. She was just off her shift. Her husband is working way more than 40 hours a week--basically, that is 60 hours a week. The people whom President Clinton was talking about, people busting it, working 60 hours a week, their premiums have doubled and their coverage has been cut in half. So my staff reached out, and we basically dictated her story, her and her husband Vern's story.
This is not her letter to me but her voice based on what was told to me by my staff. This is Sheri Kolby from River Falls, WI.
My husband and I have preexisting conditions. We need
affordable healthcare through ObamaCare or whatever works.
Vern is a milkman now, driving a tank to farms to pick up
milk, and there are only seven employees at his company which
doesn't provide coverage. I am a florist. Now, I am the only
full-time employee so they don't have health coverage at my
work either. We signed up for ObamaCare in 2014 for the
entire 12-month period.
We went on healthcare.gov, but the site crashed, so we had
to call a phone number which was jammed. Finally, I got hold
of someone and got through an hour and a half of
questionnaires. Then you get information in the mail about
what your premium will be and your subsidy, and you make your
monthly payment.
We were getting monthly letters telling us we had to fax in
our pay stubs to make sure we were still qualifying for the
subsidized premiums. We did that every month, but then next
March, when we filed our taxes, that is when my tax preparer
said, ``You better sit down. Not only did you pay your
premium, but they want your subsidy back.'' That was about
$15,000.
We were earning too much to qualify for the subsidies, even
though we held blue-collar jobs. If we stayed on ObamaCare,
we would have to pay the entire premium unsubsidized. In
2015, we made $59,000 and ended paying almost $30,000 for
premiums and deductibles. That was 51 percent of our income.
In covering our deductibles and our out-of-pocket costs, we
used up almost all of our 401(k)s. It just multiplied and
multiplied. When a huge amount of money was due the IRS, we
decided we had to sell our house.
Sheri and Vern Kolby had to sell their house so it wouldn't be taken away in foreclosure because of Obama's skyrocketing premiums.
Now we can only get a 3-month plan. That is all that is
available. Private catastrophic plans are few and far
between.
And I will add, parenthetically, also way overpriced because of the faulty architecture of ObamaCare.
There aren't a lot of companies that offer plans in Pierce
County. We are kind of in a funnel and that funnel keeps
narrowing. In May, I went back to healthcare.gov, but
coverage would have cost $1,200 per month, about $14,400 per
year in premiums for a policy with a $14,000 deductible. If
you made $200,000, you could pay that, but we are not even
close to that. We usually fluctuate between $50,000 and
$60,000. We are blue collar. We pay our bills on time, we
respect people, and we want to live a good life, and we
have just been dumped on. It has got to stop.
It may come to a point where we might not have insurance,
but we will just end up owing the hospital if something else
happens. My husband works 60 to 70 hours a week, and I work
30. We drive a `98 Wrangler. We are not running around in a
Ferrari. We don't spend money beyond our means. We don't take
trips to Tahiti, and we are not trying to swindle the system,
but it has been a very stressful experience.
We have been married 28 years, and we have stayed together
through so much, but we are not old enough to even think
about retirement for a long time so I don't know what we will
do.
These are the forgotten men and women of this healthcare debate--the people who are busting it, who don't get subsidized, who can't afford insurance coverage because of the faulty architecture of ObamaCare, and we are not courageous or honest enough to really address it.
We did get from HHS a study that they commissioned and they had the results in May.
I would like to put up my next chart here.
Basically, what they did is they studied the cause, and I have the study right here. Basically this is the question they are asking: What portion of the increase in premiums is attributable to the effects of guaranteed issue and community rating?
Now I realize those are very popular elements of ObamaCare. The problem is, they cause premiums to skyrocket. That last graph--way above what they would have been without that architecture--pricing people out of the market, forcing American taxpayers to pay far more in subsidies than we otherwise would have to do or would be necessary had we never passed ObamaCare.
Well, here is the result of their study. They studied four States: Georgia, Ohio, Tennessee, and I can't remember the last one, but I am going to focus on Tennessee.
What this graph shows--I realize it is kind of hard to see--but in Tennessee, between 2013 and 2017, premiums increased $327 per month, from $104 per month to $431 a month for a 41-year-old male. That is a threefold increase, 314 percent. What caused it, 73 to 76 percent was increased risk. Again, increased risk is basically defined as the guaranteed issue covering preexisting conditions and community rating-- things that are popular but again that cause premiums to double and in Janice Fenniman's case, more than tripled.
One thing I want to point out about that, when you hear that talking point, premiums that double and triple, look at the inverse of that. If we could roll back the clock, go back 4 years, premiums would be one- half to one-third of what they are today. People would be able to afford coverage, and the American taxpayer would be supporting those whom we want to support with a whole lot less dollars.
Now, the good news, if we were honest, if we were courageous, and if we actually addressed the root cause analysis, which has been done, which we have largely ignored, the good news is, you can actually cover people with high costs and preexisting conditions without collapsing insurance markets. They are called high-risk pools or, in the case of Maine, invisible high-risk pools. The people in it don't even realize they are in it, but it has worked phenomenally well.
Maine passed guaranteed issues, and just like they did under ObamaCare, guaranteed issues caused premiums to skyrocket. You can see the premium rate from their old Anthem HealthChoice plan back in 2011. Once they supplanted--they didn't even repeal the guaranteed issue, but they just supplanted this with an invisible high-risk pool--their premiums were cut in half. This is doable. It is possible, but it is only possible if we take a look at best practice, if we are willing to have the courage to admit exactly what is causing the problem.
I have two amendments designed to address the increase in premiums. First--and I realize this will probably not even be voted on--would be a simple one-sentence amendment that would repeal all of ObamaCare, not partial repeal, not just two-thirds repeal but repeal that would concentrate on removing all of those market reforms. I would call them market distortions that cause premiums to skyrocket, that cause people like Sheri and Vern Kolby to lose their house. That is my first amendment.
The second amendment really relates to exactly what ObamaCare was originally designed to do, which was put Members of Congress in the exact same position of people like Sheri and Vern Kolby.
Back in July of 2009, November 18, as this was being debated in the HELP and the Finance Committee, Senators Coburn and Grassley introduced language to those bills that would make Members of Congress have to purchase their health insurance plans on any kind of program or the State-based exchanges, whatever was passed under the Democrats' healthcare plan.
On December 24, 2009, the Senate passed the Patient Protection and Affordable Care Act, an Orwellian-named bill that did neither, that had Senator Coburn's basic language from the HELP Committee that was going to require Members of Congress to purchase their coverage through the exchanges. What was interesting is, it did not include an employer contribution. Those were barred.
On March 24, after the House had passed their version of the Patient Protection and Affordable Care Act and the Healthcare Education Reconciliation Act, Senator Grassley again offered an amendment to allow an employer contribution to Members of Congress and their staffs' healthcare plans. That amendment was defeated with 56 Democratic Senators defeating it. Three Democratic Senators voted for it, and every Republican Senator voted for it, allowing the Federal contribution. So Congress specifically said in the Patient Protection and Affordable Care Act, Members of Congress and their staffs must purchase their healthcare through the State exchanges, and they cannot obtain an employer contribution for those plans.
Let's fast forward to October 2, 2013. Members of Congress and their staff panicked. They went running to the Obama White House and said: You have to fix this. We know what we passed. We know what the law says, but we have to weasel our way around this--and they did. So the Office of Personnel Management issued a rule, first of all, that Congress was a small business that could purchase their insurance on a shop exchange which required a small business, which is defined in the law as less than 100 employees--I just want you to know that Congress has about 11,000 employees. There is no way this Congress is a small employer, but that was the technique that they were able to work their way around this law. So right now Members of Congress and staffs are the only Americans who get the special treatment of being able to purchase insurance on ObamaCare exchanges and get an employer contribution.
Millions of Americans did lose their insurance because of ObamaCare. They had to purchase the overpriced insurance policies out of the exchanges, but they have no access to employer contributions. So my second amendment would put only Members of Congress--I don't think we should penalize our staff--but I want to put Members of Congress in the exact same position as Sheri and Vern and thousands and maybe tens of thousands, maybe hundreds of thousands, maybe millions of Americans who are making too much, busting it, working 60 hours a week. Their premiums have doubled, sometimes tripled. Coverage is cut in half, and they can't afford it. They are taking a risk. Congress is still advantaged because we are making more than $59,000. We are making $174,000.
The reason I am offering this amendment--I know it will not be popular--is that the only way Congress will have the courage to act is if they are affected every bit as much as the American public. I urge all of my colleagues to be honest, to be courageous, and to make sure they do not exempt themselves from the pain, from the harm, from the damage of ObamaCare, so that they will commit themselves to actually fixing this problem.
Those are my first two amendments that have to do with premiums. I urge my colleagues to support them. I think that they are good amendments and are worthy of support.
Mr. President, how much time do I have remaining?
Mr. President, let me move on to my second point.
Again, I come from a State whose Governor showed real courage in recognizing that traditional Medicaid was unsustainable and was in trouble. The last thing we really should be doing to an unsustainable entitlement program is to throw more promises on top of that and make it even more unsustainable. I think it is extremely important that we recognize that Medicaid expansion is directed toward able-bodied, childless, working-age adults. That is, again, funded at a much higher level by the Federal Government, at 90 to 100 percent, versus traditional Medicaid, which is really targeted to those we want to help--children. Forty percent of traditional Medicaid goes toward children, the disabled, and the elderly.
My next amendment is designed to try and make traditional Medicaid more sustainable, not by pulling the rug out from anyone but simply by limiting further enrollment and allowing Medicaid expansion to phase out based on attrition. Let me show you a couple of facts, because we hear an awful lot of demagoguery. We hear an awful lot of scaremongering. I hear it in Wisconsin, as people who are on traditional Medicaid and who are largely unaffected by this bill other than in the out years are scared that their traditional Medicaid is going to be taken away from them.
Here are the facts. Back in 2008, the Federal Government spent about $200 billion on traditional Medicaid. With the implementation of ObamaCare, we began increasing that pretty dramatically with Medicaid expansion. Over the next decade or so, we will spend close to $90 billion per year, on average, on Medicaid expansion--again, targeted toward able-bodied, working-age, childless adults. This was the former trend line, and this is the current trend line for traditional Medicaid.
Now, you hear about all of this slashing of Medicaid. Here is the current baseline. This is what the Senate bill would have done to traditional Medicaid and to Medicaid expansion. Yes, you can see some relatively significant cuts to Medicaid expansion, but to traditional Medicaid, you see, really, not all that much--about $164 billion over 10 years.
My amendment would say, without pulling the rug out from anyone: Let's end further enrollment in Medicaid expansion, and as that program phases out through attrition, let's devote the money that we save to traditional Medicaid--supporting and sustaining the elderly, children, and the disabled.
This is what happens to traditional Medicaid under my amendment. First of all, this is what happens under the Senate bill. You do not see any year in which Medicaid is actually cut. It is always rising. We boost it a little bit further and do not increase the deficit by any more, under the Senate bill, by doing that.
My last point is this, and then I will move on and yield the floor. This is what I am talking about in terms of dollars. Under current law, traditional Medicaid will spend $4 trillion over the next decade and Medicaid expansion almost $1 trillion, for a total of $5 trillion spending. Under the Senate bill that was originally proposed, original Medicaid would have been cut by about $164 billion, which is still close to $4 trillion, and Medicaid expansion, obviously, would have been reduced by a fair amount.
Under what I call my sustainability amendment, traditional Medicaid would actually increase in spending slightly and not harm anybody--not children, not the disabled, not the elderly. Obviously, with Medicaid expansion, just by allowing it to phase out through attrition--not pulling the rug out from anyone--in the end, you would be spending the same amount on the Senate bill. From my standpoint, I think that we preserve and sustain Medicaid.
Again, I urge my colleagues to support all three of my amendments. I hope to get a vote. If not a vote, I hope that they are considered if this thing goes to a House-Senate conference.
I yield the floor.