Dakota Beacon

By Attorney Robert Hale

AARP has authored a document that they call “Health Action Now! Myth vs Facts” that can be found at: http://aarp.convio.net/site/PageNavigator/Myths_vs_Facts

AARP makes the claim of addressing “Myths” with “Facts”. There isn’t a single reference in AARP’s “Myths vs. Facts” to any section of the ONLY health care bill (HB 3200) being considered by Congress.  How is it possible to contend the assertions made by AARP are myths or facts?  AARP cites nothing to corroborate any assertion they make! They ignore the ONLY legislation that exists!



AARP Claims:

There are special interest groups trying to block progress on health care reform by using myths and scare tactics. Like the notion that health care reform would ration your care, hurt Medicare or be a government takeover. Actually, these are false statements.

Bill Analysis:

• These are not false statements.  They are logical conclusions based on the language of HB 3200.

• Rather than listen to the opinions or conclusions of others- read HB 3200.

• Health care is rationed when funding is limited.  That is how all goods and services are rationed.

• HB 3200 creates an un-elected appointed committee that will specify the required terms and conditions in all health care insurance policies.  Those policies that do not meet these requirements are not “approved”.  Unapproved policies do not meet the requirements of HB 3200 and subject individuals or businesses to the penalties the Bill empowers the IRS to impose on any entity (including individuals) who do not have an approved policy.

• It is not unreasonable to conclude from the mandates of HB 3200 that the Federal Government and the Committees created under HB 3200 will dictate the contents of all health care policies.



AARP Claims:

All of the health care reform plans currently being debated in Congress would ensure that you and your doctor are the ones making decisions about your health.

Bill Analysis:

• There is currently only ONE plan that has been published and is in the process of being considered by congress – it is HB 3200.

• HB 3200 is the only plan which can be evaluated – nothing else.  Everything else is simply rhetoric.  If passed HB 3200 becomes the law – anything not in the bill isn’t law and is not enforceable or actionable. All assertions or comments not found in the bill are meaningless.

• Speaker of the House, Nancy Pelosi pushed to have HB 3200 passed by the House and sent to the Senate within 2 ½ weeks of the time it was first published and made public.

• NO public hearings were or are scheduled for public input into any proposal, let alone HB 3200.



AARP Claims:

The majority of working Americans will continue to receive their health care through their employer.

Bill Analysis:

• This is absolutely accurate.  This is because under HB 3200 employers are required to pay 60% of the cost of a family plan and 72.5% of a single plan.  Unless it is provided through the employer there would be no means of enforcing payment.

• Employers are, under HB 3200, required to offer only plans approved by a yet to be appointed Federal Committee.

• The requirements of the plans that must be provided have not yet been written.

• Under HB 3200 employers will be penalized if they do not offer plans meeting all the requirements of this un-elected committee.

• Neither employers nor employees are permitted to determine what their plan covers or doesn’t cover.  Those decisions are left exclusively under control of an un-elected Federal Committee.



AARP Claims:

In addition, health care reform will strengthen Medicare by eliminating billions of dollars in waste while lowering prescription drug prices.

Bill Analysis:

• The ‘billions of dollars in waste’ have not been identified; they are only hoped for savings.

• There is nothing in HB 3200 showing where “waste” will be eliminated.

• Medicare is the Federal medical program that has been exclusively run by the federal government.  There is NO need to enact any legislation to permit the Federal Government to take steps to eliminate “waste” in a program that it runs and has since its inception.

• Why hasn’t the federal government stopped this waste?  What are they waiting for?

• What is in HB 3200 that will give Medicare the tools to lower prescription drug prices that it doesn’t currently have?

• We were unable to find anything in HB 3200 that would do this.



AARP Claims:

Throughout the debate on how to fix what’s broken about our health care system, AARP pledges to help you cut through the noise and find the facts about what health care reform means for you and your family.

Bill Analysis:

• What debate?

• To date there has been NO discussion of why health care costs have soared over the last 40 years.

• We are unaware of any forum that has or does exist for the purposes of discussing and/or debating the issues surrounding health care in the United States.

• We have been unable to find any place – in Congress or otherwise – where there are discussions of: o Tort reform (which by some studies conclude are responsible for almost 80% of the increases in health care costs after inflation is taken into account).  o Costs and time delays imposed by the Federal Drug Administration on pharmaceutical companies trying to bring new drugs and medical devices to the market.  o Problems with third-party payers who are unable to effectively oversee the legitimacy of medical bills.

o The number of individuals able to enter medical schools because of lack of places for those qualified and wishing to enter.

o Why Medicade and Medicare payments for services are below the cost of hospitals and doctors providing services.

o Why employers are to be held responsible for paying the majority of an individual’s health care costs.  Why shouldn’t they be responsible for paying for an employee’s food, shelter, clothing, transportation, entertainment?

• None of the above issues are addressed in HB 3200.  HB 3200 is the only piece of legislation that has been introduced.  The question that needs to be asked is how does HB 3200 address the above issues?  If it doesn’t how does it propose to”fix what’s broken about our health care system”?



AARP Claims:

When we see special interests using scare tactics, we’ll make sure you’re given the facts so you can make informed decisions about health care reform. 

Bill Analysis:

• It is incumbent upon those claiming “special interests” are doing anything – either good or bad to identify the “special interests” by name.

• It is incumbent that those claiming information is inaccurate and a “scare tactic” to articulate the specific statement and point to the specific language in HB 3200 the either confirms or denies the claim.

• What “decisions” are the public (i.e. individual citizens) being asked to make regarding HB 3200?

• The public is not being provided an opportunity to make any decisions, let alone provide any input on HB 3200.

• The only health care bill before Congress is HB 3200.  The public was given NO information regarding this piece of legislation prior to July 14, 2009 when it was first published.

• The sponsors of HB 3200 sought to have it passed by Congress prior to their August recess.  That did not happen.  Had the sponsors achieved their original goal there would have been NO public input of any kind.  In short, without input there are no meaningful decisions we can make. The law would have been passed and we would have to live under it.



  AARP Claims:

The following are some of the most common myths being spread about health care reform and the facts that prove them wrong –

Myth: Health care reform is socialized medicine.

Fact: Health care reform will preserve the employer-based health care system, meaning an estimated 200 million Americans will continue to get their coverage through their employers.

Bill Analysis:

• It is a fact that some Americans will continue to get their coverage through their employers.

• However, what they get will be dramatically different than what they have.

• How it will be different can be seen in Title I of HB 3200.

• Exactly how it will be different is unknown because the mandates have yet to be written.

• A Committee of un-elected individuals will write them.

• HB 3200 specifies that ALL health care plans meet the requirements set out by a yet to be appointed Committee.

• HB 3200 states all current employer provided plans will remain approved for 12 months after the bill becomes law.  Provided there are no changes in the terms or conditions of the plans.

• If there are any changes in the terms and/or conditions the plans must comply with the requirements developed by the Committee.



AARP Claims:

Fact: For people buying coverage for themselves, there would be a range of private health plans to choose from.

Bill Analysis:

• Every plan that will be available must meet the mandates of a committee yet to be appointed and yet to define the specifics of what the plan must contain.

• No individual will be permitted to negotiate a plan that does not meet the requirements set out by the Committee.

• For anyone who has a plan not approved by the Committee or chooses to not have a plan will be penalized.

• The IRS will enforce the penalty.



AARP Claims:

Also, the so-called “public plan” option would seek to give American consumers another choice if they can’t find affordable, quality coverage in the private insurance market. The goal of the “public plan” is to give consumers the best value for their money and force greater competition among insurance plans for our business.

Bill Analysis:

• HB 3200 does not define either “affordable” or “quality”.

• The “public plan” is a heavily subsidized plan.

• The consequence of this subsidized plan will be to either:

o Drive private plan providers out of the market because they cannot compete with the government subsidized plan;

o Drive individuals to purchase the “public plan” because of the attractive subsidy thus increasing the cost to taxpayers.

• HB 3200 does not provide for health care insurance.  HB 3200 requires companies to provide payment of selected health care services regardless of risk, pre-existing conditions, age , life-style or gender.  HB 3200 prohibits private providers from pricing their products based on risks, lifestyle or behavior.

• HB 3200 prohibits risk management.

• HB 3200 requires plans limit deductibles regardless of what the policyholder wishes.

• HB 3200 prohibits individuals or employers from negotiating terms and conditions including deductibles, co-pays or any other terms with a plan provider.



AARP Claims:

Fact: Every proposal that Congress is considering would allow people to choose their own doctors and hospitals.

Bill Analysis:

• At best this is misleading.

• Medicare policyholders do not have this option.  Many doctors do not accept Medicare policyholders.

• Under HB 3200 the majority of those who currently have no health care insurance will likely end up with a Medicare type plan i.e. the “public plan”.

• Many doctors will not accept either Medicade or Medicare patients.  A close reading of HB 3200 leads the reader to conclude the “public option” will mirror the Medicare program.

• Those who opt for the “affordable and quality public plan” will most likely face the same dilemma those with Medicade and Medicare now fact – doctors that will not take them.

• No professional will work for less than the cost to provide the services being provided. Nothing in HB 3200 provided for funding that will guarantee to meet the cost to providers.

• Many governors, after reading HB 3200, have stated that the consequence of enactment of this will be the closing of hospitals in their states.  These concerns are ignored in HB 3200.



AARP Claims:

Bottom Line: Health care reform isn’t about a government takeover. It’s about guaranteeing all Americans a choice of health care plans they can afford. 

Bill Analysis:

• Under HB 3200 employers will be required to either provide a health care program covering mandatory services or pay an 8% penalty.

• HB 3200 directs the IRS to enforce compliance and collection of penalties.

• HB 3200 will add an additional 50,000,000 people to the system.  This is what “universal health care” means.  Everyone will be covered.

• HB 3200 proposes to fund 1/3rd of the cost through “squeezing out waste”.  The Federal government unilaterally runs Medicare, which, according to the CBO loses billions each year due to fraud and waste.  If government cannot fix its own program and eliminate waste now does HB 3200 change that?  It doesn’t.

• H 3200 proposes to fund another 1/3rd through a surcharge tax on the wealthiest 1.5% of Americans.  The assumption this 1.5% of Americans will continue to fund this program – i.e. fund the first pure socialist program in our history – may well prove elusive at best.

• The remaining 1/3rd is to be funded by employers.

• If health care plans are currently unaffordable and an additional 50,000,000 people are going to be added to a health care system how will that lower costs?  Someone has to pay.  It will either be the user or the taxpayer.  There is no free lunch.



AARP Claims:

Myth: Health care reform means rationed care.

Fact: None of the health reform proposals being considered would stand between individuals and their doctors or prevent any American from choosing the best possible care.

Bill Analysis:

• There is only ONE “health reform” proposal – that is HB 3200.  There are no others, none!

• No plans or proposals have been published nor is there any we can look at to see what they may propose.  The only proposal that is meaningful for discussion and consideration is HB 3200.

• 60% of the pages in HB 3200 address Medicare and Medicaid (pages 205 – 819 of 1,018).  The reality of HB 3200 – if enacted will be to discourage individuals from seeking a profession in the health care industry.

• Two things will stand between individuals and their doctors under HB 3200:

o A shortage of doctors.  Adding 50,000,000 more people to the system without adding additional doctors will limit access to all doctors.  The consequence is having to wait or not being able to see the doctor of one’s choice.  While some refuse to call this “rationing”, it is.

o The Public Option Plan will mirror Medicare.  Medicare limits what doctors are paid.  This limits who doctors will see.  Again, while some refuse to call this “rationing” it is.



AARP Claims:

Fact: Health care reform will NOT give the government the power to make life or death decisions for anyone regardless of their age. Those decisions will be made by an individual, their doctor and their family. 

Bill Analysis:

• This remains to be seen.  We do know that in both Massachusetts and Oregon medications and medical procedures as well as timely access to doctors under their public system is occurring.

• We also know the same happens in the both the Canadian and British systems.

• HB 3200 mirrors these systems.

• To believe there will be no limitations – i.e. rationing, s to ignore reality and history.

• HB 3200 places all plan requirements in the hands of the Federal government.  While some argue this will not impact “life or death decisions for anyone regardless of their age” that has not been the experience of government controlled plans either in states that have them or in countries that have such controlled plans.

• The problem is that individuals, doctors and families will have fewer options for care, procedures, timing of procedures and cost under HB 3200 than they currently have.  This will directly impact the decisions that can be made.

• Currently it those without insurance have limited choices.  Those with or without insurance have the choice of anything they can afford.  HB 3200 will limit the choices for everyone regardless of whether or not they wish to pay for care with their own funds.



AARP Claims:

Fact: Health care reform will help ensure doctors are paid fairly so they will continue to treat Medicare patients.

Bill Analysis:

• Currently the federal government has total control over Medicare and Medicaid.  We know many doctors refuse Medicare and Medicaid patients because they are not paid fairly.

• There is nothing in HB 3200 that provides for higher payments to doctors.

• The opposite appears to be the case.  HB 3200 will result in adding up to 50 million more to the care rolls while decreasing funding by more than $300 billion over ten years. 



AARP Claims:

Bottom Line: Health reform isn’t about rationing; it’s about giving people the peace of mind of knowing that they will be able to keep their doctors and that they will always have a choice of affordable health plans.

AARP Claims:

• HB 3200 is what Congress is proposing to “reform health care”.

• HB 3200 will add approximately 50,000,000 more people to health care plans.

• HB 3200 requires caps how much policyholders pay in out-of-pocket medical expenses (that is requires providers to pay more than they currently do).

• HB 3200 requires plan providers to fully cover, without charge, regular checkups and tests aimed at helping prevent illness, such as mammograms and eye and foot exams for diabetics.

• Nowhere does HB 3200 define “affordable health plans”.

• If plans are going to cover more people and pay for greater costs who is going to fund them?

• Someone has to pay.  The claim that more people can get more services and costs will either stay the same or go down seems unreasonable and unattainable.

• If, as the sponsors of HB 3200 claim, more coverage at lower costs will be achieved through elimination of waste why hasn’t that been done already?



AARP Claims:

Myth: Health care reform will hurt Medicare.

Fact: None of the health care reform proposals being considered by Congress would cut Medicare benefits or increase your out-of-pocket costs for Medicare services. 

Bill Analysis:

• There is only one health care reform proposal - HB 3200.

• HB 3200 will significantly increase the cost to employers and a select number of Americans.

• Nowhere in HB 3200 is there language that Medicare benefits would not be decreased.



AARP Claims:

Fact: Health care reform will lower prescription drug costs for people in the Medicare Part D coverage gap or “doughnut hole” so they can get better afford the drugs they need.

Bill Analysis:

• This is not certain; we can hope it will be true.

• There is nothing in HB 3200 that supports or guarantees their claim there will be lower prescription drug costs for people in the Medicare Part D program.

• Any and all decreases, if there are any, will have to be paid for by someone.  Either it will be by the insured or through taxes on the rest of us.

• Sponsors of HB 3200 claim that they will negotiate better prescription drug prices for Medicare policyholders.  If this is the case why isn’t it being done now?  HB 3200 provides nothing that would enhance the federal government’s authority or ability to do so at this time.



AARP Claims:

Fact: Health care reform will protect seniors’ access to their doctors and reduce the cost of preventive services so patients stay healthier. 

Bill Analysis:

• HB 3200 has no language that “will protect seniors’ access to their doctors”.

• HB 3200 does provide that someone other than the senior will pay for “preventative services”.  However, this does not mean there will be a reduction in health care costs.  It only means the costs will be shifted to other taxpayers.

• As an operator of Retirement/Assisted living facilities and the son of elderly parents I can personally affirm seniors are not in control of the majority of medical needs they confront.

• Prevention will not stop strokes, weak bones, unsteadiness and the myriad other ailments that are the result of natural aging.

• End of life medical needs consume 90% of a person’s lifetime health care expenses.

• HB 3200 will increase Medicare patient numbers and reduce funding by more than $300 billion over ten years.

• While no one wants to acknowledge it – the only way to reduce the cost of health care to senior citizens is the accelerate “end of live” timing.

• The claim that “preventative services” will keep seniors healthier, while marginally true, does not address the more important question of “end of life” medical costs.  These costs are not a function of a healthier or less healthy lifestyle but a question of aging.  While it would be nice if we could eliminate the medical consequences of aging it can only be done by accelerating end of life timing.

• Sponsors of HB 3200 claim this bill will not permit such considerations to occur or be encouraged by HB 3200.



AARP Claims:

Fact: Health care reform will reduce costly, preventable hospital readmissions, saving patients and Medicare money.

Bill Analysis:

• There is nothing in HB 3200 that addresses reduction of “costly, preventable hospital readmissions”.

• The only way that “readmissions” could be reduced would be for denial.  Sponsors of HB 3200 have emphatically stated that HB 3200 will not do so. 



AARP Claims:

Fact: Rather than weaken Medicare, health care reform will strengthen the financial status of the Medicare program. 

Bill Analysis:

• HB 3200 has no language that supports this claim.

• HB 3200 calls for reduced funding of Medicare by more than $300 billion while demographics show that the number of Medicare recipients will dramatically increase over the same period.

• HB 3200 does not address any of the systemic causes of the increases in health care costs over the last 20 years. Unless the systemic problems that push health care cost up are addressed the financial strength of Medicare will continue to be weakened.



AARP Claims:

Bottom Line: For people in Medicare, health care reform is about lowering prescription drug costs for people in the “doughnut hole”, keeping the doctor of your choice, improving the quality of care, and eliminating billions in waste that is causing poor care and medical errors.

Bill Analysis:

• Health care reform should be about lowering prescription costs, keeping doctors of one’s choice, improving quality of care and elimination of waste.  HB 3200 does none of these things.

• The assertion that “poor care and medical errors” are caused by waste strains the imagination.  This comment illustrates one of the difficulties in discussing issues surrounding medical costs.

• Waste is a problem.  Poor care is a problem.  Medical errors may be a problem although malpractice suits seem to be more of a problem in the steep increase in medical costs.  HB 3200 addresses none of these issues. 



AARP Claims:

Myth: Health care reform is too expensive – we can’t afford it.

Fact: The President and Congress have committed to producing legislation that will be paid for so it won’t saddle our children and grandchildren with debt.

Bill Analysis:

• The Congressional Budget Office does not agree.

• The CBO has said HB 3200 will result in several hundred billion in deficit, i.e. debt spending.

• HB 3200 will “saddle” employers and a very small percent of taxpayers (the wealthiest 1.5%) with huge costs. The question is will this impact us, our children or our grandchildren? No one is discussing this impact.  It is one that should be seriously considered – it will have significant impacts.

• HB 3200 will result in forcing employers to reduce their workforce so they can afford to fund the health care policies mandated under the bill or offer no plan, pay the 8% penalty and then have their employees join the “public plan”.  Increasing the number of people on the “public plan” will increase costs to taxpayers.  These costs will either result in higher taxes now or greater debt.  The later will fall on our children and grandchildren.  The former on us now.

• In the alternative employers can pay the costs of a more expensive health care mandate and have less income (profit) with which to grow and expand.  In this case it will result in reduced job creation.

• It may be wishful thinking to believe that the wealthiest Americans will continue to create wealth when they are penalized for doing so.  Our own tax history shows they have not.



AARP Claims:

Fact: If we do nothing to fix health care, families with Medicare or employer-based health coverage will likely see their premiums nearly double again in the next seven years.

Bill Analysis:

• HB 3200 does nothing to address any of the systemic problems facing our medical system.

• HB 3200 does nothing to fix the systemic problems with health care and thus cannot “fix health care”.

• Instead of addressing the problems causing the increasing costs of health care HB 3200 throws employers’ and wealthy American’s money at the problem without doing anything to address the causes of the problem.  HB 3200 fixes nothing.

• History and the experience of Massachusetts, Oregon, Canada and Britain with government controlled and mandated health care clearly demonstrate that does not improve care, coverage, availability or the number of professionals entering the profession.

• HB 3200 has no language and no proposed programs to reduce health care costs or control them.

• HB 3200 has language that increases the number of persons that must be covered by health plans; that increases the services these plans must fund and that decreases what policy holders will be permitted to pay.

• HB 3200 mandates 50,000,000 more people be covered by health care policies, policies pay for more services and those policy holders pay lower co-payments.

• The sponsors of HB 3200 have not explained nor does the bill outline how this will happen and at the same time health care costs will be reduced.



AARP Claims:

Fact: If we do nothing to fix health care, the share of your income spent on health care will nearly double in the next seven years. 

Bill Analysis:

• HB 3200 has no language that addresses “fixing health care”.

• HB 3200, however, mandates universal coverage and forces employers to pay for medical costs.

• HB 3200 does not address litigation issues, FDA imposed costs and delays in bringing medications and medical devices into the market, separating those receiving medical services from the billing of those services.

• The above issues are the causes of the increase in health care costs yet HB 3200 addresses none of them.

• It is important to address and try to fix the problems in our health care system.  These problems are not quality of health care services, or options we currently have available.  They are issues not addressed by HB 3200. 



AARP Claims:

Bottom Line: When one in three Americans say someone in their family skipped pills, postponed or cut back on needed medical care due to the cost; when countless bankruptcies are related to medical expenses; when the number of uninsured approaches 50 million; when government spending on health programs rises so rapidly that it jeopardizes other priorities; and when employers struggle to pay for the costs of health care, the fact is, we can’t afford not to fix health care.

Bill Analysis:

• Who could disagree with this?

• Unfortunately HB 3200 is the only proposal currently being promoted as the way to “fix health care”.

• HB 3200 addresses none of the issues outlined above except mandate “universal” coverage.

• HB 3200 addresses none of the systemic problems that are driving the increase in health care costs.

• HB 3200 does nothing to help employers struggling with health care costs.  Instead HB 3200 forces employers to spend more on health care costs.

• HB 3200 assumes that forcing employers to spend more on health care costs will take the burden off both the government and employees.

• The sponsors of HB 3200 do not explain or address where employers will find the money to pay the costs imposed on them by HB 3200.

• Sponsors of HB 3200 realize they cannot increase taxes on the general population as much as would be necessary to subsidize the health care coverage they wish to mandate.

• Sponsors of HB 3200 believe employees should not be required to fund the cost of their health care and propose - through HB 3200 to impose these cost on employers.

• The real bottom line is HB 3200 cannot fix health care it can and will only make the problem worse not better.

• The truth is, medical costs are not unreasonable and beyond the cost of the majority of Americans.

• To totally redesign and place the federal government in charge of our entire health care system using the IRS to enforce the mandates of this system) is irresponsible, unnecessary, misguided and does not address a single one of the systemic issues responsible for the increases in health care costs.”



AARP Claims:

Myth: Health care reform means the government can make life-and-death decisions for you.

Fact: Health care reform will NOT give the government the power to make life-and-death decisions for anyone regardless of their age. Those decisions will be made by individuals, their doctor and their family.

Bill Analysis:

• “See below.”



AARP Claims:

Fact: No one, including the government or your insurance company, will be given power to make life-and-death decisions for you.

Bill Analysis:

• HB 3200 has no language that supports this claim.  On the contrary there is language that raises serious concerns the opposite may well be the case.

• HB 3200 is only an outline.  The details of the “system” that HB 3200 will authorize have not been written.  Until the details are written claims that there will be no “rationing” are just that claims.

• Yet, HB 3200 provides for and looks frighteningly like the government run systems found in Massachusetts, Oregon, Canada and Britain.  They have medical systems that mirror what HB 3200 outlines.  It is unrealistic to assume we will not see the same outcome if HB 3200 becomes the model for America’s future health care system.



AARP Claims:

Bottom Line: Health care reform isn’t about putting the government in charge of difficult end of life decisions. It’s about giving individuals and families the option to talk with their doctors in advance about difficult choices every family faces when loved ones near the end of their lives.

Bill Analysis:

• HB 3200 is not reform nor is it aimed at fixing the systemic problems that are responsible for the increasing costs of medical care in the U.S.

• HB 3200 puts all health care insurance providers into the business of overseeing payment of medical costs as directed by an as yet unnamed, un-elected committee.

• We have no idea what the details of these programs will be they have not been written and if they have they have not been made public.

• HB 3200 does direct an appointed and un-elected committee to develop “health care strategies for America” – after the HB 3200 is passed.

• We have no idea what these “strategies” will be, how they will be implemented or how they will impact the future of health care in America.  This should concern every American.