The White House yesterday released a statement in opposition to H.R. 2, repealing the Job-Killing Health Care Law Act. The bill, sponsored by Representative Eric Cantor, Republican of Virginia, would not only repeal the Patient Protection and Affordable Care Act, but also portions of the Health Care and Education Reconciliation Act of 2010 that address health care. In addition, H.R. 2 would put back into effect any laws that were amended or repealed by both Acts at the time of their passage.
The Obama Administration, citing data from the Congressional Budget Office, argues that repealing the laws would increase the federal government’s deficit by $230 billion during the first decade of repeal, and by $1 trillion in the second decade. The Administration also noted that 32 million Americans would go uninsured and that consumers in the individual insurance markets would see an increase in their insurance costs.
In a letter dated January 6, 2011 to Speaker of the House John Boehner, the CBO acknowledged that forecasts on the performance of the economy have changed. In addition, certain aspects of the health care legislation that start taking effect this year will also change expectations on the size of deficits.
The health care legislation targeted by the GOP is designed to do the following: mandate that most legal residents of the United States purchase health insurance; create health insurance exchanges through which certain individuals and families may receive subsidies for purchasing health insurance; expand eligibility for Medicaid; permanently reduce the growth in Medicare payments to health care providers; and impose an excise tax on certain health insurance plans that carry high premiums.