Five Health Care Promises Obama Won't Keep

The President Could Be Close to Achieving Health Care Reform, but Not with All of his Campaign Promises

(CBS) 
5. Lower Premiums by $2,500 for a Family of Four

"If you've got health insurance through your employer, you can keep your health insurance, keep your choice of doctor, keep your plan," Mr. Obama said in his Oct. 15, 2008 debate against McCain. "The only thing we're going to try to do is lower costs so that those cost savings are passed onto you. And we estimate we can cut the average family's premium by about $2,500 per year."

This campaign promise is the trickiest to explain and to evaluate.

Mr. Obama gave this figure repeatedly, but he was not being completely forthright about what he meant. His administration never expected families to see savings of $2,500 in premiums; instead, his advisers calculated the total cost savings for both individuals and the government.

Mr. Obama and his team hoped to see those savings achieved and passed on families -- but not completely in the form of lowered premiums. His advisers laid out ways to accomplish the savings in a memo (PDF) obtained by the New York Times.

"The original arithmetic was somewhat basic," the Times reported in July 2008. "In May 2007, three Harvard professors who are unpaid advisers to the Obama campaign... produced a memorandum offering their 'best guess' that a menu of changes would produce savings of at least $200 billion a year... That would amount to about 8 percent of the $2.5 trillion in health care spending projected for 2009, when the next president takes office...The total savings were then divided by the country's population, multiplied for a family of four, and rounded down slightly to a number that was easy to grasp: $2,500."

The changes expected to produce the savings included reduced administrative costs ($46 billion), improving preventive medicine and chronic disease management ($81 billion), and investments in digitizing medical records ($77 billion).

Yet whether those changes would produce those savings is suspect. The Times explained then that the costs were drawn from recent studies -- for instance the figure of $77 billion in savings achieved through health IT came from a RAND study. That study, however, says that such savings would take 15 years to reach.

Moreover, the nonpartisan Congressional Budget Office (CBO), under the leadership of then-director Peter Orzag (now Mr. Obama's Director of the Office of Management and Budget), decided that RAND appeared to "significantly overstate the savings for the health care system" from health IT, the Wall Street Journal reported.

Other recent studies also dispute whether Mr. Obama's cost saving mechanisms will work. A study earlier this month published in Health Affairs showed that "preventive services for the chronically ill may reduce health care costs, but they are unlikely to generate the kind of fantastic savings that President Obama and other Democrats have said could help pay for an overhaul of the nation's health system," the Washington Post reported.

The study in Health Affairs is backed up by the CBO's own recent findings.

"Although different types of preventive care have different effects on spending, the evidence suggests that for most preventive services, expanded utilization leads to higher, not lower, medical spending overall," CBO Director Doug Elmendorf wrote on the Director's Blog last month. In defense of preventive medicine, he at least added, "Of course, just because a preventive service adds to total spending does not mean that it is a bad investment."

In spite of all this, it looked in May as if Mr. Obama might have been able to keep his promise, when the health care industry appeared to offer $2 trillion in spending reductions over 10 years to help pay for the president's reforms. The administration enthusiastically said this was enough to reduce costs by an average of $2,500 for a family of four.

However, health care leaders either did not clearly spell out their intent to the White House or reneged on their offer, claiming days later that they never agreed to such large cost reductions, the New York Times reported.

In addition, the health care legislation coming out of the Senate Finance Committee could even actually result in higher premiums for customers -- the insurance industry is threatening that the $6 billion industry-wide fee and other taxes Sen. Baucus has proposed will be passed on to consumers.

What this all means is that it may be years or decades before any overall savings from Mr. Obama's plans materialize -- if they do at all.

More Unknowns

The above five promises don't have much hope of materializing in the bill Mr. Obama signs. There are, moreover, a few significant elements of reform that are still up in the air.

It is unclear, for instance, if consumers will face what would amount to a tax on their health benefits. During the campaign, Mr. Obama adamantly opposed taxing health care benefits, but Baucus' bill in the Senate would impose a tax on insurers for plans worth more than $8,000. The president endorsed this proposal during his speech to a joint session of Congress this month, even though nonpartisan analysis suggests the intent of the tax is to shift people to cheaper plans.

Mr. Obama insists that because it is a tax on the insurers -- not the employers providing the benefits -- it will not affect consumers. When CBS News chief Washington correspondent Bob Schieffer asked the president on Sunday on "Face the Nation" whether he could still stand by his promise to not tax anyone making under $250,000, he said yes.

"I can still keep that promise because, as I've said, about two-thirds of what we've proposed would be from money that's already in the health care system but just being spent badly," he said. "Insurance companies, drug companies are gonna have to be ponying up, partly because right now they're receiving huge subsidies from folks."

Obama on "Face the Nation" (9/20/09):
Obama: No Higher Taxes With Health Reform
Obama: 24-Hour News Cycle Feeding Anger
No Answer On More Troops in Afghanistan
Obama: Moscow Move 'Bonus' of Missile Plan
Full Transcript: Obama on 'Face the Nation'

Additionally, Mr. Obama has softened his rhetoric over time on a government-run health insurance plan, or "public option." He has gone from saying his plan "must" have a health insurance exchange that includes a public option to saying that "the public option, I think, should be a part of this but we shouldn't think that, somehow, that's the silver bullet that solves health care."

Four out of the five bills before Congress include a public option, but Baucus' bill -- the most recently introduced and the one garnering the most attention at the moment -- does not. It remains to be seen whether the final bill will include this proposal.

[natdef_1]

OBAMA = LIES, LIES, LIES

when it comes to showing genuine care for another, the means employed, doesn't begin with capitalism, but the heart...!
capitalism hinders the heart's RESOURCES from being EMPLOYED toward the well-being of those you care for......LIMITATIONS !
if it not be true...then why is everything hindered by a lack of capital $, from the HOMELESS to the U.S. GOVERNMENT ? !!!
and that's not speaking of the welfare of other nations, countries, and peoples. it doesn't matter if your CAPITALIST or SOCIALIST !
it doesn't matter if your a DEMOCRATIC nation or a COMMUNIST nation! CAPITALISM HINDERS ALL PEOPLE !

when it comes to showing genuine care for another, the means employed, doesn't begin with capitalism, but the heart...!
capitalism hinders the heart's resources from being employed toward the well-being of those you care for......LIMITATIONS !
it it not be true...then why is everything hindered by the lack of capital $ from the homeless to the U.S.GOVERNMENT !?
and that's not speaking of the welfare of other nations, countries, and peoples. it doesn't matter if your capitalist or socialist!
it doesn't matter if your a democratic nation or a communist nation. CAPITALISM HINDERS ALL PEOPLE !

if our standard is being that the well-being of our family, friends,neighbors, even that of... the neighbors we never met, is "important" to us, then we have shown signs of compassion drawing from our own personal experiences, ...knowing personally, what it might be like for someone else, being in similar circumstances we've treaded in, ourselves, before.
then, we've obeyed what was counciled out of the mouth of moses, who spoke about meetng a stranger along the way...reflecting on our own personal (isreal's) experiences of hardship and suffering (in egypt) and being without someone who cared for our own well-being in a time of need. saying, remember what it was like for yourself...opening your heart of compassion as well as your hand and give to the need of the stranger, remembering how it was, that there was not anyone to help in your times of need, past. relating it to your neighbors, strangers, family and friend's need at present. that there may not of been someone to help in there own present need, if you don't.
that's what it means, to fulfill the law and the prophets...loving your neighbor as yourself, treating them with the same care, you yourself had need of in a time of need, so that you can recieve help in your needs.
the measure you meet out you will recieve back to your own need from your neighbors MULTIPIED!...speaking of karma, sowing and reaping. karma is one's own livelihood based upon one's relationships with family, freinds and neighbors, as well as his god. it's the dispostion of our circumstances. he who sows to the well-being of another's good, then we will recieve it back again in due course of time from many of our neighbors. it's that easy to be a benefit to others as well as being benefited, enriching and being enriched.
then all else being things(food, shelter, clothing,) will fall into it's rightful place (priority) in our lives and in all our relationships, administered in love to one another.

isn't it something to think about.... that a thing,...is more valueable than mankind...to whom it was created for and given to....GOLD ! what's so valueable about gold that a man's life is denied him...? that someone would kill another for ?

[gce65]

TO ALL READERS (ESPECIALLY SENIORS):

Please do not be intimidated or frightened by the insurance company/GOP tactics of fear mongering. It's despicable, but they will get to you any way they can.

Please also remember it was Democrats (FDR and LBJ) who brought Social Security and Medicare to seniors, not the Republicans.

Republicans would have you working until the day you died without any safety net. Just a couple of years ago the Republicans wanted to privatize everything. How might that have worked out with the stock market crash and the Bush recession that has followed?

Just a couple of thoughts to keep in mind.

[TNConservative]

Are you liberals really this ignorant. Please show me in the Constitution where it guarantees a right to free health care. I have good health insurance because I have worked hard to have a good job. Why should I have to pay for those who won't? If people want health insurance, they need to get a job and pay their bills. It's called personal responsibility, not that you socialist liberals would understand that. You think the government should be a nanny state that takes care of everything. I've got news for you - Obama and his idiot liberal friends in Congress will all be out off office in the next elections if they keep trying to socialize this country. Maybe they should try reading the constitution. Then maybe they would understand that the federal government is only to have limited powers. Anything not enumerated to the federal government is to be left to the states.

[ebystrom]

I'm surprised CBS News is actually reporting on Obama's unkept campaign promises (lies). It's just one lie after another with this guy. I'm not surprised, though, that the article excuses his lies by saying they're promises he really meant to keep, but he just couldn't, due to circumstances beyond his control.

I'm also not surprised that Obama supporters commenting here continue to make excuses for him. They can't even see that his back room deal with BigPharma, fixing drug prices, is an obvious violation of all he claims to care about in saving consumers money on health care, and a violation of his much hyped "transparency", which has never been shown yet, even as the article denotes the lack of "transparency".

This whole thing is nothing but an attempt to have complete government control of our health care, which amounts to complete government control of our very lives, and you people can't see that. No. it's all Glenn Beck's fault, and conservatives' fault, and the Republican party's fault, and TEA party protesters' fault, when the candidate and the President lies, and tries to turn us into a socialist state.

When the government has the power to give you everything you want, it also has the power to take everything away from you. That's the kind of power you shouldn't want the government to have over you.

regarding the health-care debate...how valuable is a man's life compared to the value of "the gold standard" that is capitalism has raised?
it's good to see and hear about those who show how valuable a man is, like jack herer (as a example) by their' donations of money toward the hospital cost, but here we also have a show of those who wouldn't lift a finger to help a man in his need, unless compensated with money...VALUES ! man vs. gold !
we, mankind, have placed value on things like gold, when we should rather place our value and standard toward the well-being of each other and raise that standard alone.
that's what i would call true health-care all around the earth, where no ones left out, because their' well-being is the standard in us !
gold should be lowered to the statis of just being a common thing !
my friend, jack herer's life is worth more than capitalsm's standard of what's valuable.
capitalism robs all mankind of the dignity due them...that means: "being valued by those around them".
an example of those who's dignity have been stolen from are the homeless. does anyone really care for there well-being?
the homeless are always being run off by the establishment of capitalism with police-force backing !
how just is capitalism ? seeing that it robs another ? of even life itself ! gold was more valuable than the lives of san salvodor in the day that columbus' ship arrived. the same with north america from the east coast to the west coast. how many died because their neighbor saw gold as being more valuable than themselves ?
capitalism is like a wrentch in the gear-works of every human relationship. it hinders everyone !
capitalism keeps one from even meeting the needs of another, including one's own needs...
my friend is more valuable than the standard capitalism has raised !

regarding the health-care debate...how valuable is a man's life compared to the value of "the gold standard" that is capitalism has raised?
it's good to see and hear about those who show how valuable a man is, like jack herer (as a example) by their' donations of money toward the hospital cost, but here we also have a show of those who wouldn't lift a finger to help a man in his need, unless compensated with money...VALUES ! man vs. gold !
we, mankind, have placed value on things like gold, when we should rather place our value and standard toward the well-being of each other and raise that standard alone.
that's what i would call true health-care all around the earth, where no ones left out, because their' well-being is the standard in us !
gold should be lowered to the statis of just being a common thing !
my friend, jack herer's life is worth more than capitalsm's standard of what's valuable.
capitalism robs all mankind of the dignity due them...that means: "being valued by those around them".
an example of those who's dignity have been stolen from are the homeless. does anyone really care for there well-being?
the homeless are always being run off by the establishment of capitalism with police-force backing !
how just is capitalism ? seeing that it robs another ? of even life itself ! gold was more valuable than the lives of san salvodor in the day that columbus' ship arrived. the same with north america from the east coast to the west coast. how many died because their neighbor saw gold as being more valuable than themselves ?
capitalism is like a wrentch in the gear-works of every human relationship. it hinders everyone !
capitalism keeps one from even meeting the needs of another, including one's own needs...
my friend is more valuable than the standard capitalism has raised !

[mld678]

Government run health care ? the so-called ?public option? - presents serious challenges for us. The private sector and competitive market forces are the best means to meeting health care needs. Watch this video from the U.S. Chamber http://www.friendsoftheuschamber.com/media/

[patronejohn]

And the Democrats are wondering why many of us are leaving the party and registering as Independent. Both sides are not working for the people but for the interests of big business. Again the public option is off the table, not to mention the single payer method. I am not even sure why we have only a two party system. Neither side can get anything done for the country. Everything gets stalled or amended or the ever popular filibuster. That is of course if you are a large corporation and throw enough money and perks to the right senator on the right committee in order to get the outcome you want. The political systems needs reform, not just healthcare.

[Gepbran]

Lets face it, over 40 millions Americans do not have proper medical coverage, pharmaceutical drugs prices are more expensive than any other developed country, and if our medical services are the most expensive than any other place in the World, they are not the best unlike certain commentators are saying, specially for the middle class and the underprivileged citizens.

Most of the demonstrators seen in the streets are the one that might benefit from the system to be since they are the one exposed to the loss of their coverage when their company will fire them when their jobs will be sent overseas in countries where there is no medical coverage for workers and employees.

The massive irrational and insidious propaganda issued by certain organizations and media against these necessary health reforms, put back on tracks this sentence of Goebbels "The essence of propaganda consists in winning people over to an idea so sincerely, so vitally, that in the end they succumb to it utterly and can never escape from it."

It is a pity that the approach and discussions to be fairly made on that important topic, could not be performed without the apparent torrent of hate, voluntarily generated and spread for a low level political purpose.

[peggy97478]

Until Obama stops playing politics with our Health Care, he will get NOTHING!! His attempt to payoff his UNION thugs by giving them carte blanch to unionize every health care worker in the nation is disgusting! That little tidbit was in HR 3200 which he tried to shove through, without anyone reading it, in July. He needs to form a true bi-partisan group and hammer out a Bill that will address excessive litigation by greedy lawyers, the pre-existing condition clause, crossing state lines to purchase health insurance, and giving tax breaks to lower income people so they can afford to purchase insurance. NO GOVERNMENT RUN HEALTH CARE!! Do something that is good for the nation without BANKRUPTING it or adding it to the already bloated deficit. The people of this country are wide awake and watching every move that is being made in Washington DC. We are mad as hell and we VOTE!! Stop playing politics and get to work!

[k5ox]

Insurance companies have huge profits. So do drug companies. Why would they want to change? Why doesn't anyone express outrage that when an uninsured person goes to the hospital they pay 5 times what the insurance company does -- no discount. THIS IS
WRONG.
Social programs are not socialism. It does not change our democratic principles. It enhances them. The republicans prey on the uniformed and selfish. Everyone has to sacrifice a little for the common good. That is not communism -- it is democracy. People get what the people want. Companies don't get what they want as is usually the case. Call it what you want but FAIR GOVERNMENT FOR THE PEOPLE IS WHAT IT TAKES. Remove the thieves from our government. Give Obama a chance.

[the_beagle]

I voted for Obama, and now I deeply regret do so. Not as though I'd have voted for McCain, of course; but I threw my vote away on pushing the button simply to help yet another corporate lackey to Wall St. and Corporate America rape this nation.

Make no mistake about it: requiring every citizen to purchase private health insurance is the very OPPOSITE of reform; it means that the private insurance health racket will control the nation's health-care system until kingdom come. The private insurers need to DIE, not be given 40million more captive customers.

Since when is it the White House's role to essentially be a lobbyist/salesperson for the private insurance racket? Since the days of Ronald "permanent national debt" Reagan, America has been crushed by Washington-allowed corporate fascism. Obama's merely the latest corporate fascist.

[ibsteve2u]

Lots of anti-Obama rhetoric, but nothing from the right to indicate that they have accepted the reality that just about anybody looks good when compared to the ever increasing insanity coming from the right.

And since it is patently apparent that the right has a tight grip on the testicular conveyance system of the Republican Party....well, the Democrats win by default.

[natdef_1]

doesn't look that way in virginia, pal

[lisaob1]

Cap and Trade will cost hundreds of thousands of American jobs. It will cost the average American family $1800/year. Plus it will not even accomplish what it was written up to accomplish. It is about the unions just like the healthcare bill is. They were both written by unions.

[lisaob1]

Cap and Trade will cost hundreds of thousands of American jobs. It will cost the average American family $1800/year. Plus it will not even accomplish what it was written up to accomplish. It is about the unions just like the healthcare bill is. They were both written by unions.

[Wills11]

This was a well written article. It did not take President Obama long after he was elected to see that neither the President nor Congress run this Country. This Country is run by Banks, Insurance Companies and any big business that can afford a Lobbyist. Senator Baucus received 3 million dollars in campaign contributions from the Health Insurance Industry. When he wrote the Healthcare Reform Mark-up Bill, the Health Insurance Industry was holding the pen. This will not change and the American Taxpayer will never be represented by our elected officials until Lobbyists are outlawed and campaign contributions come only from individual taxpayers.