House Republicans Vow to Repeal Obamacare

by John M. Curtis
(310) 204-8700

Copyright January 7, 2011
All Rights Reserved.                                

               Making good on his promise to repeal Obamacare, newly minted House Speaker John Boehner (R-Ohio.) prompted a procedural vote [236-181] for the House to vote next week to repeal the Democrats’ national health plan.  Unable to get Medicare-for-all, Obama and his House and Senate colleagues Dec. 24, 2009 paved the way for his signature March 23, 2010.  When Sen. Joe Lieberman (I-Conn.) vetoed the Medicare-for-all single-payer national health care plan Nov. 10, 2010, Democrats had no choice but to propose a mandatory insurance plan, along the same lines as the state plan enacted in Massachusetts by then Gov. Mitt Romney, providing a standardized health insurance plan to needy state residents.  Barack took the federal health insurance plan as a blueprint for giving his national health insurance plan appropriate coverage, deductibles, co-payments and waiting periods.

            To make insurance more available and affordable, Obamacare enabled all individuals, regardless of medical histories, to qualify for the federal plan, essentially eliminating an insurance industry distinction between individual and group insurance.  Obama’s individual plan enables all individuals, like today’s group insurance, to qualify without so-called proof-of-insurability, an industry rule demanding applicants to have qualified medical exam.  When employees qualify for group plans there are no medical requirements.  Under Obmaacare, the distinction betweem individual and group insurance are, in effect, eliminated, since no one is denied health insurance.  Boehner’s attempt to eliminate Obamacare hurts individual subscribers, mostly self-employed individuals forced to undergo medical scrutiny to qualify for health insurance because of pre-existing conditions. 

            Opposed by the insurance industry and the GOP, Obama’s plan, while potentially insuring 30-40 million more Americans, hurts insurance companies bottom lines by forcing a higher claims-to-benefits-ratio.  Fierce opposition in the new Republican-House stems from the insurance lobby’s fear that the plan would hurt the earnings of publicly-traded insurance companies.  Before Boehner’s move to repeal the bill, Republican states attorneys general have sued in federal court claiming the bill violates the U.S. Constitution’s Commerce Clause, mandating all citizens to purchase insurance.  While federally-mandated Medicare and Social Security deductions have passed the Constitutional test, requiring all citizens to purchase government health insurance crosses a different line.  Real opposition stems not from the Constitution but from fears over a loss of profits.

             Objections to Obamacare stem largely from the health insurance industry fearing long-term damage to an otherwise profitable industry.  Proponents of Obamacare claim that closing the gap on the uninsured will create a boom in the health care industry, saving taxpayers untold billions by recycling more cash into the consumer economy.  Supply-siders see the logic of tax cuts stimulating the economy but they don’t see benefit of saving consumers precious cash on health care-related expenses.  If taxpayers save more money on health care, it’s logical they’ll spend more on consumer purchases, fueling growth in Gross Domestic Product.  “If you have to do the amputation, get it over with,” said Rep. Steve King (R-Iowa), favoring a quick vote on repealing Obamacare.  House Republicans oppose health care reform not because it violates the Commerce Clause but because hurts the industry’s bottom line..

               Public opposition to Obamacare stems from fears that it will destroy the employee-based health care, imposing a government insurance program.  Like Medicare, the nation’s most successful national health care plan, Obamacare would give subscribers choices to visit their own doctors.  Just like Medicare lets patients to pick their own doctors, Obamacare will also to the same.  Employers and individuals will be allowed to purchase health insurance in large insurance pools, bringing premiums down and benefits up.  Obamacare attempts to standardize insurance policies in terms of coverages, deductibles, co-payments an waiting periods.  It also bans insurance companies from so-called red-lining, where applicants with preexisting medical conditions are either rated up or denied coverage.  All applicants, whether in groups of individuals, would have equal access to insurance.

            Repealing Obamacare fulfills a cynical promise to Tea Party conservatives hoping to land Obama a knockout punch before the 2012 election.  Economic conditions are becoming more favorable to the president’s reelection bid, with the nation’s unemployment rate dropping today from 9.8% to 9.4%.  More improvements in the U.S. economy and expected ends to the Iraq and Afghan wars play into Obama’s reelection plans.  “Repeal this bill, and you’re going to find more Americans dying,” said Rep. John Garemendi (D-Calif.), former California Insurance Commissioner worried about currently millions of uninsured Americans.  Objections to a “one-size-fits-all” health care program make no sense, since beneficiaries will have more standardized coverage, deductibles, co-payments and waiting periods.  Most opposition stems from unfounded fears about losing profits.

About the Author

John M. Curtis writes politically neutral commentary analyzing spin in national and global news. He's editor of OnlineColumnist.com and author of Dodging The Bullet and Operation Charisma.

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