Press Releases

Congressional Democrats’ socialist “infrastructure” schemes include a government takeover of our health care system which could kick Americans out of their private and employer-based health insurance, create socialist drug price controls, increase taxes and Medicare costs, reduce workforce participation, and shrink the number of people financing the Medicare program.

Let’s look at one idea Biden mentioned last night - lowering the Medicare eligibility age. This would not substantially lower the number of uninsured individuals, but rather, it would just shift where they get their coverage. Avalere, a healthcare consulting firm that specializes in data analytics, estimates that 73 percent of the 23 million individuals newly eligible for Medicare would be those covered by employer-sponsored coverage or individual private plans.

But most employer-sponsored plans are more affordable than Medicare. In 2020, the average single employee premium costs for employer-sponsored health insurance was about $103 per month compared to $145 per month for Medicare Part B.

Expansion of government-controlled health care programs as championed by the Democrats further erodes employer-sponsored coverage and could increase Medicare spending by up to $100 billion at a time when it is facing insolvency.

In case you missed it via Bloomberg Law, here’s more on how Biden’s socialist health care ideas are scaring job creators.

Employers Fear Fallout on Biden Plan to Extend Health Subsidies
By: Sara Hansard
April 29, 2021

(Bloomberg Law) President Joe Biden’s plans for reshaping health-care coverage could have conflicting consequences for employers—reducing costs by lowering the Medicare age yet potentially undermining company health plans if younger, healthier employees leave for cheaper, subsidized Obamacare coverage. …

Companies worry that expanded subsidies for Obamacare plans could draw some employees away from company plans, especially lower-income workers. … Employers, which cover about 150 million Americans, are trying to determine how Biden’s proposal affects their costs and plan viability, and they are particularly concerned that making the increased Obamacare subsidies permanent will breach the “firewall” between employer plans and the ACA exchanges. …

“There is a strong sentiment in the employer community that eliminating the firewall could lead to adverse risk for the employer risk pool,” James Gelfand, senior vice president of health policy for the ERISA Industry Committee, said in an interview. ERIC represents large employers that provide self-insured health plans for employees.

“Younger, healthier people are likely to then go into an exchange where they can get a very cheap, bare-bones, highly subsidized plan,” Gelfand said. “That leaves only older, and presumably less healthy people in the employer plans, thus raising the price of those plans, which becomes kind of a vicious cycle.”

“When a premium goes up, some percentage of people drop out,” which leads to further premium increases, Gelfand said. The ACA firewall helps protect employer plans so that they stay viable, he said. …

Employers and health policy analysts are also keeping a close eye on proposals to reduce the age at which individuals become eligible for Medicare. …Lowering the Medicare age could save employers as much as 30% and reduce what beneficiaries pay, but costs would shift to taxpayers, according to an analysis released Tuesday by the Kaiser Family Foundation.

To read the full Bloomberg article, click here.