Rep. Kelly Demands Answers on Rising Insurance Premiums Under Obamacare
Ways & Means hearing examines why Affordable Care Act is making health care unaffordable for families, individuals
“The government doesn’t ‘pick up the tab’ on anything.
The government collects money from hardworking American taxpayers.”
WASHINGTON — U.S. Representative Mike Kelly (R-PA) – a member of the House Ways and Means Committee – participated in today’s full committee hearing on the rising costs of health insurance premiums under the Affordable Care Act (ACA), also known as Obamacare.
Highlights of Rep. Kelly’s exchange with the expert witness panel:
Rep. Kelly: “I come from the private sector and I was not here whenever the health care law was debated and then passed, but I can tell you as a person who actually provides insurance for the people that I work with, we’ve seen premiums — this is for a family, a mom and dad with a couple children — it’s gone from about $800 a month to about $1,150 a month. Now, I’m understanding that some of the people that I represent, some of their increases are going to be 38 to 40 percent. … And then the question comes down to [the kind of thinking that says:] ‘Well, that’s not as big of a problem on the premiums because there are going to be subsidies that are going to take care of that. So, Mr. White, Mr. Condeluci, Mr. Harte, Mr. Lee: who’s going to pay for the subsidies?
Joel White — President, Council for Affordable Health Coverage: “The taxpayers will, and that’s the problem, right? We’re shifting costs, we’re not lowering them. We need some strategies to lower the cost.”
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Rep. Kelly: “At the end of the day, somebody still has to pick up the tab on it. The answer is hardworking American taxpayers. … We are putting such a heavy burden on the private sector right now and the people that provide this — [I know] because I’m one of them. I provide that for the people I work with. … So the sustainability of it is where we have to go on this and that’s where I’m seeing the disconnect.”
Christopher Condeluci — Principal, CC Law & Policy PLLC: “Correct, because as the premiums go up, the government shields those premium increases in the form of higher government spending … so there is a tension between increased premiums, how the subsidy works, and how they shield consumers from those premium increases. It’s not the consumer that’s generally experiencing that premium increase. Instead, it’s the government and at a point you might have, an unsustainable situation from a spending perspective.”
Rep. Kelly: “Now, we keep using the term ‘the government.’ The government doesn’t pick up the tab on anything. The government collects money from hardworking American taxpayers and redeploys it where the government thinks it should go.”
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Rep. Kelly: “Mr. Harte, if you could just weigh in… This is an unsustainable business model. It has nothing to do with wanting to provide people with health care. It’s at a point that it’s going to reach that we can’t do it and taxpayers can’t be burdened every time we decide we want to do something.”
Tom Harte — President, Landmark Benefits, NH: “They simply can’t afford it. You know, you’re absolutely right, those subsidies are coming from my business, from my employees, from your employees, and everyone across the country to pay for these taxes. … And just to clarify, Mr. Chairman, my reference to ‘government’ was ‘taxpayers.’”
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