Johanns: Health care bill falls far short

WASHINGTON -- Sen. Mike Johanns today issued the following statement after Majority Leader Harry Reid unveiled the Senate's complete version of health care legislation:

"Unfortunately, the new bill does not come close to meeting the standards promised by President Obama and demanded by the American people. While there are positive aspects of this bill, it falls far short of the true reform Nebraskans and all Americans deserve."

The Senate bill does not meet Senator Johanns' Six Principles for Health Care Reform, as outlined at his recent town halls and on his website. Below are specific examples of provisions that violate the principles.

1. Protect Medicare Beneficiaries

* The Medicare program, projected to be bankrupt by 2017, already pays more in costs than it receives in tax revenue; the bill cuts Medicare by $464.6 billion.

2. Ensure Access to Quality Care

* The bill reduces Medicare payments to doctors by 23 percent in 2011.

* It cuts payments to home health, hospice, and disproportionate share hospitals, which serve millions of seniors.

* This will be especially devastating in rural areas, where these providers already struggle.

3. Bend Health Care Cost Curve

* According to the Congressional Budget Office (CBO), the cost curve will actually increase.

* CBO: "Under the legislation, federal [expenditures] for health care would increase during the 2010--2019 period, as would the federal budgetary commitment to health care."

* The coverage expansion would drive a national increase in government spending on health care by $160 billion over 10 years.

* The government plan will have higher premiums.

* CBO: "A public plan paying negotiated rates would attract a broad network of providers but would typically have premiums that were somewhat higher than the average premiums for the private plans in the exchanges."

4. Safeguard Taxpayers

* The bill imposes $493.6 billion in taxes and fees on businesses which will be passed onto consumers; mandates on individuals and state governments will impact paychecks, pocketbooks, and state budgets.

5. Respect Life

* Stripped of the House bill's Stupak amendment, the bill paves the way for taxpayer-financed abortions.

6. Secure Fair Process and Fair Treatment

* The bill uses gimmicks to reduce the deficit by delaying the benefits until the fifth year of the 10-year budget window, while taxes and fees start right away.

* The $127 billion in deficit reduction is LESS than the amount the deficit increased on just one month--October 2009.

* The 2,074-page bill crafted behind closed doors, away from C-SPAN cameras, was produced contrary to President Obama's promise that all developments would be aired for public viewing.

* The bill is full of carve outs for specific states, leaving others to foot the tab.

* For example, high-end "Cadillac" plans will be taxed, but New York and 16 other states would have a higher threshold for this tax.