Mr. Speaker, I am joined this evening with my colleagues in the House GOP Doctors Caucus, and other Republican Members, to talk about this most, most important subject, and that is this recent delay of the employer mandate. The Obama…
Mr. Speaker, I am joined this evening with my colleagues in the House GOP Doctors Caucus, and other Republican Members, to talk about this most, most important subject, and that is this recent delay of the employer mandate.
The Obama administration's announcement that it will delay implementation of the employer mandate due to the enormous regulatory burden on businesses, Mr. Speaker, is proof positive that the Affordable Care Act is a job killer.
The administration's excuse for the delay was to simplify reporting requirements for small businesses. But employers haven't been against the mandate solely due to its burdensome reporting requirements.
While it's estimated that ObamaCare will require American job creators, families, and health care providers to spend more than 127 million hours a year on complying with the law, a far greater concern to business owners is the impact the mandate will have on job creation. The cost of the health insurance and of ObamaCare's fines will drive up the costs of labor and will continue to be a drag on this economy. This is further evidence that the administration does not get how the law will impact the economy.
The U.S. Chamber reported that 72 percent of small business executives would have a harder time hiring because of ObamaCare. The employer mandate has been cited by business owners repeatedly as a major obstacle to expansion. They simply cannot afford it. At a recent small business roundtable, one Georgia business owner said to me, I want to provide health care insurance for my employees. ObamaCare has forced me to choose between that and hiring new people.
For instance, one common deterrent to growth that is often cited by small businesses is the 50 employee threshold, at which point a business must provide insurance to its employees once the 50th full- time employee is hired. This misguided provision has repeatedly forced different hiring practices by these companies.
I heard that Heatco, a company which specializes in the design and manufacture of world-class heating solutions, which is located in my district in Bartow County, Georgia, had looked into expanding. The thing is that it currently has--you guessed it, Mr. Speaker--49 employees, and due to the added ObamaCare cost, to expand by adding an additional employee, it will cost more than automating some of their processes.
The administration cannot say with a straight face that businesses are more concerned with reporting requirements rather than with the overbearing costs that ObamaCare will add to their bottom lines.
President Obama's announcement doesn't reduce the harmful effects that the mandate will have on employers as we move forward. It could, however, provide cover. Let me repeat that: it could, however, provide cover for Democrats during an election year. This political calculation protects them from voter backlash and from the reality that ObamaCare-- their law--is to blame for an economy that is literally hemorrhaging jobs.
This is yet another example of the Obama administration's replacing the rule of law with partisan, raw politics. This unilateral decision is an abuse of executive power; and in my opinion, it is a clear demonstration that President Obama will disregard for political gain the laws he has signed.
In 2010, Democrats in Congress determined that the enforcement of the egregious employer mandate would begin on January 1, 2014. As bad as the law may be, the administration does not have the power to rewrite the law. That responsibility belongs--where?--right here in Congress. Just look at your Constitution, which I keep in my pocket. It's somewhere deep inside my pocket, but I guarantee you that it's in here, because I put it in here every single day.
Legalities aside, postponing the mandate for 1 year is not enough. It simply delays the inevitable. When it's eventually enacted, Mr. Speaker, hours will still be cut, and pay will still be reduced. Businesses hovering just under the 50 employee threshold will still have to weigh the costs of expansion; and because of the requirement, many will be unable to grow. It is just further proof that the administration does not understand how business works.
The lack of response from this administration is also increasingly frustrating. House Republicans have held numerous hearings, asking for more information as to how this decision was reached. We have sent letters to the Secretary of the Treasury, and we have sent letters to the Secretary of Health and Human Services. We have asked witnesses in order for us to gain a better insight into this ruling, but have continuously been rebuffed, in other words, no response to our requests. It's offensive to the American people that the administration cannot offer clear guidance on a central piece of its ObamaCare fiasco.
This delay will also affect the verification of individuals in this insurance exchange. It's amazing that the administration is suggesting that we will rely on the honor system to determine Federal payments. This is truly outrageous. According to the law, you aren't eligible for ObamaCare subsidies if your employer has offered you what the government considers to be affordable coverage. This is spelled out clearly in the law. With the delay of the employer mandate, however, the government won't be able to verify whether the individual has been offered coverage, and this will open the door--wide open--for enormous fraud and abuse, and the costs will skyrocket.
We've seen the same thing in other entitlement programs that rely on this so-called honor system. It's clear that what we are seeing is a tactic of ``subsidize first, ask questions later.''
Remember the old phrase ``pay and chase'' on Medicare claims? It is the administration's goal to enroll as many people in the ObamaCare exchanges as they can and as soon as they can, i.e., in this year of delay, so that we will never be able to repeal this bill. The Federal takeover of one-sixth of the economy raises taxes on small business owners and on middle class families. It guts Medicare, seniors--it guts Medicare--and it will irreparably harm the doctor-patient relationship.
Instead, we need State-based reforms that will lower costs, give patients more control of their own health insurance policies, increase access, and ensure a higher standard of care.
With that, Mr. Speaker, I yield to my colleague, the gentleman from Maryland, Dr. Harris, who was an anesthesiologist by profession before coming to Congress.
I thank the gentleman.
Before I yield time to the gentleman from Kentucky, colleagues, I want you to look at this first poster because a lot of what the gentleman from Maryland, Mr. Speaker, was talking about in regard to costs shows it pretty simply here. The change in the cost per employee, because of the health care law, if you have 49 employees, as we've talked about, there is no increase in the cost of health care because you don't have to provide the government-mandated expensive coverage. So there is no increase. That's why, of course, they keep the employee rate at 49 and don't hire those extra employees.
If you're at 50, though, and you are under the mandate, the increase is $800 per employee; if you are at 75 employees, the increase is $1,200 per employee; 100 employees, a $1,400 increase; and 150, a $1,600 per year increase per employee. That's why so many of these small businesses are right there, my colleagues, at 49, with no increase because no job growth or employees that are hired at 29 hours a week. Try to support yourself, much less a family, on 29 hours a week.
I now yield to the gentleman from Kentucky (Mr. Guthrie).
Mr. Speaker, I thank the gentleman from Kentucky. Although he is not a member of the House GOP Doctors Caucus, I think that we might take a vote here on the House floor. The cochair of the House GOP Doctors Caucus is here with me, and I'm going to recognize him in just a second. So he and I are cochairs; so, Mr. Guthrie, we may indeed make you an honorary member. Thank you very much. We appreciate your input.
Clearly, Mr. Speaker, the issue is not just about the doctor-patient relationship. The reason we're giving this presentation tonight and the leadership has asked us to talk about this issue, the members of the House GOP Doctors Caucus--and it includes medical doctors, I think about 16 of us. It includes dentists. It includes a clinical psychologist. It includes a hospital administrator--formerly, before becoming a Members of Congress--advanced practice nurses, bachelor of science nurses, people in the health care space that know of what they speak. And in that regard, I can't think of anybody, Mr. Speaker, who knows this issue better than my cochairman of the House GOP Doctors Caucus and fellow OB/GYN physician, Dr. Phil Roe from Tennessee.
Reclaiming my time just for a second, Mr. Speaker, the gentleman is bringing up a subject that is so important that our colleagues understand on both sides of the aisle, this IPAB, the Independent Payment Advisory Board that Dr. Roe is talking about, it's 15 bureaucrats. Well, none of them have been appointed yet. Not one. Nada. And the law says that if the Secretary doesn't appoint, or these 15 are not appointed--and, yes, they are going to make about $175,000 a year--then she, and it's a ``she'' right now, the Secretary of Health and Human Services, or whomever in the future, they don't have to have that board; one individual bureaucrat can make these cuts, these, really, rationing cuts is what it is.
I yield back to my colleague.
Reclaiming my time just for a second, Sunday it was, on the Sunday morning ``Meet the Press,'' and that's what this next poster shows, yesterday, on NBC's ``Meet the Press,'' Senate Majority Leader Harry Reid, the Democrat majority leader from Nevada, proclaimed that:
ObamaCare has been wonderful for America.
Well, let's just take a look at some of the headlines from this past week on just how wonderful it has been.
Investors Business Daily says:
ObamaCare mandate delay, employers keep job cuts. For many
workers, the 1-year delay in ObamaCare's employer mandate was
too little too late.
Reuters says analysis:
ObamaCare struggles to meet make-or-break deadline. With
time running out, United States officials are struggling to
cope with the task of launching the new online health
insurance exchanges at the heart of President Barack Obama's
signature health reforms by an October 1 deadline.
Time magazine:
ObamaCare increases cost and complications. The Obama
administration's recent announcement that the Affordable Care
Act's employer mandate will kick in a year late could ripple
beyond the brief extension, increasing costs and complicating
implementation of other vital parts of the law.
Think the exchanges as an example.
And then CNN Money says this:
Delay in the ObamaCare employer mandate has simply put off
rules businesses had already started to adjust to.
That's the reality here, Mr. Speaker. My colleague from Tennessee knows it. I think my colleagues on the Democratic side of the aisle know it, and that's why, in my opening remarks, Mr. Speaker, I mentioned that, hey, is it really the employers, the small business men and women that were knocking on the White House door saying, We can't meet these reporting requirements, please help us do something; or was it some of my Democratic friends, whether in this Chamber or the other body, saying, 2014 is going to be kind of a tough year for us having to defend this train wreck? I think that's what the Senator from Montana said. Of course, he's going to retire rather than face the music. I can't say that I blame him.
That's what's going on here. People are not dumb. I think they can read between the lines. I hope my colleague can stay awhile longer. I'd like to yield to him at this point.
I've got one last poster that I wanted to point out, Mr. Speaker, to my colleagues. It's a little complicated. I'll try to make it as simple as I can.
Basically, let's start right here with the employer. Under that, in this diagram, fewer than 50 full-time employees, including full-time equivalents, then no employer penalty for offering a health insurance benefit. But in the most egregious situation, the employer has 50 or more full-time employees, including full-time equivalents, and the employer decides not to offer coverage. If a tax credit is obtained by at least one of those full-time employees in an exchange, then the annual penalty to that employer is $2,000 for the year--not just for that one, but for every single employee that he or she employs. It could be hundreds; it could be thousands.
They get a break for 30, yes.
Again, we just have maybe a little bit of time left, and I wanted to point out some things to our colleagues.
I want to call this ``ObamaCare Shot and Chaser.'' Bear with me a little bit because I think this is interesting and cute at the same time.
ObamaCare has been a train wreck since its inception. March 23, 2010, almost 3\1/2\ years ago, the Democrats passed it to see what's in it. And now families, taxpayers, and job creators are paying one steep price. Between its skyrocketing cost, unsustainable and wasteful programs, and job-strangling policies, a majority of Americans disapprove of this law--and they disapprove of it today.
On top of that, implementation of ObamaCare has become a full-fledged disaster, as we've pointed out this evening. Some of its biggest supporters agree with us--and not news media publications that are considered particularly conservative.
As for the President, he just can't seem to make up his mind on the employer mandate. He was against it in 2009 before he was for it in 2010. After signing the mandate into law, the administration announced earlier this month it would delay the employer requirement for 1 year. When the House of Representatives acted last week to really make it constitutional--because he didn't have the right to do that--but when we voted to allow him to do that, the same White House issued a veto threat on the bill. The thing that he had done and that we made it legal for him to do, he's going to veto that.
So the shot:
We have heard concerns about the complexity of the employer
mandate requirement and the need for more time to implement
them effectively. We have listened to your feedback and we
are taking action. The administration is announcing that it
will provide an additional year before the Affordable Care
Act mandatory employer mandate and insurer reporting
requirements begin.
The chaser. That was the bill that we passed, H.R. 2667. Employer mandate delay is unnecessary. These are the words of the administration:
Enacting this legislation would undermine key elements of
the health law.
That was stated July 17 by the White House veto threat. President Obama's repeated flip-flops on the individual mandate are well- documented. He pledged support for it in 2007 on the campaign trail to a group of union workers. When his health care plan was released months later, the individual mandate was noticeably absent. He went on to attack his Presidential primary opponents--think HC--for supporting the requirement, only to change his mind once again shortly thereafter.
I could go on and on. I think we've made our point here tonight, and maybe we can yield back a little time. I will yield to my colleague, and he can yield back to me for closing.
Mr. Speaker, colleagues on both sides of the aisle, we're here to get it right. I've always said this--and I truly believe it--the politics will take care of itself. The people will decide. We don't need term limits. They term-limit us. Let's quit worrying about the politics, and let's do the policy. Let's get the policy right.
A 2,700-page bill crammed down the throats of the American people will never work. It never has worked. It never will work. And that's why we're here tonight, taking pains to explain and make sure that anybody within earshot understands that we're sincere about this. It's not partisan. We need to get rid of this law, and we need to replace it with something that truly will effect those changes that Dr. Roe was talking about in regard to the cost of health care and the accessibility. We didn't even talk about accessibility and about whether or not there will be any doctors there to see these patients.
So I yield to my friend from Tennessee.
Mr. Speaker, in closing, I want to thank all of the members of the House GOP Doctors Caucus who participated tonight. If I tried to add up the number of years of clinical experience in our group of about 21 members on the Republican side of the aisle in this caucus, it would probably be 600-plus years. So we really do know of what we speak. We don't have every answer, but we know of what we speak; and we want to get it right. That's what this is all about.
With that, Mr. Speaker, I yield back the balance of my time.