Please see below for a fact check correcting Senator Kyl’s remarks this morning on ABC’s This Week, where he misled on taxes, Medicare, and premiums.

RHETORIC: Senator Kyl Said Deficit Savings in Health Reform Are Achieved By “Massively Increasing Taxes on the American People” and “Cutting Medicare By Half A Trillion Dollars.” Appearing on ABC’ This Week, Senator Kyl claimed that deficit savings in health insurance reform are achieved, “[b]y massively increasing taxes on the American people, by cutting Medicare by half a trillion dollars. If you give me a pen and say, how much do you want to increase taxes in order to not have a budget deficit, I can theoretically do that. What does that do to American families and to the matter of premiums? The CBO itself said that premiums are not going to go down under the legislation. In fact, if you’re in the individual market, they’ll go up between 10% and 13%.” [ABC’s This Week, 12/20/09]

REALITY: PREMIUMS WILL DECREASE UNDER REFORM

Study: “House And Senate Bills Would …Lower Premiums By Nearly $2,000 Per Family.” The Commonwealth Fund released a report titled, “Why Health Reform Will Bend The Cost Curve.” It wrote: “The health reform bills passed by the U.S. House of Representatives and under consideration in the Senate introduce a range of payment and delivery system changes designed to achieve a significant slowing of health care cost growth. Most assessments of health reform legislation have focused only on the federal budgetary impact. This study projects the effect of national reform on total national health expenditures and the insurance premiums that American families would likely pay. We estimate that the combination of provisions in the House and Senate bills would save $683 billion or more in national health spending over the 10-year period 2010–2019 and lower premiums by nearly $2,000 per family. Moreover, the annual growth rate in national health expenditures could be slowed from 6.4 percent to 6.0 percent.” [Commonwealth Fund, 12/7/09]

CMS Report: Senate Health Care Bill Saves Seniors Nearly $700 Per Couple Per Year While Reducing Premiums More Than $300 Per Year And Out Of Pocket Costs By Another $370 Per Year. According to a recently released CMS report, the Patient Protection and Affordable Care act saves seniors nearly $700 per couple per year, reducing premiums by more than $300 per year and out of pocket costs by another $370 per year in 2019.  [CMS Actuary analysis, 12/10/09]

NYT: “Nonpartisan Congressional Budget Office Persuasively Contradicted” Insurance Industry Claim That Reform Legislation Would Drive Up Insurance Premiums; “Tens Of Millions Of Uninsured Americans Can Be Covered Without Driving Up Costs For Everyone Else.” The New York Times editorial board wrote: “The health insurance industry frightened Americans — and gave Republicans a shrill talking point — when it declared in October that proposed reform legislation would drive up insurance costs for virtually everyone by as much as thousands of dollars a year. The nonpartisan Congressional Budget Office persuasively contradicted that claim this week. Undaunted, the industry issued a rebuttal report, claiming again that premiums would soar. We find this second industry report no more persuasive than the first…And we have far more confidence in the C.B.O.’s expertise in evaluating a wide array of databases and in its objectivity. The chief message Americans should derive from the C.B.O.’s analysis is that tens of millions of uninsured Americans can be covered without driving up costs for everyone else.” [New York Times Editorial, 12/4/09]

Bloomberg News: 134 Million Americans Insured Through Large Employers Will See No Rise In Premiums And May Pay 3 Percent Less…Subsidies Also Will Lower Costs As Much As 59 Percent For 18 Million People Buying Their Own Insurance.” Bloomberg News reported on CBO estimates of the Senate health insurance reform bill’s impact on insurance premiums: “On average, 134 million Americans insured through large employers will see no rise in premiums and may pay 3 percent less than they would if Congress failed to pass a health-care overhaul plan, the nonpartisan Congressional Budget Office said yesterday. Subsidies also will lower costs as much as 59 percent for 18 million people buying their own insurance.” [Bloomberg, 12/1/09]

WP: In “First Objective Analysis Of The Effect On Premiums,” CBO Found That Senate Bill “Would Leave Premiums Unchanged Or Slightly Lower For The Vast Majority Of Americans,” Contradicting Insurance Industry Claims. The Washington Post reported that, “[a]s the Senate opened debate Monday on a landmark plan to overhaul the nation’s health-care system, congressional budget analysts said the measure would leave premiums unchanged or slightly lower for the vast majority of Americans, contradicting assertions by the insurance industry that the average family’s coverage would rise by thousands of dollars if the proposal became law… Monday’s CBO report offers the first objective analysis of the effect on premiums. An earlier study commissioned by America’s Health Insurance Plans, an industry trade group, warned that the Senate bill would dramatically increase insurance premiums, but the study’s authors at PricewaterhouseCoopers later acknowledged that they had ignored major pieces of the legislation in their calculations.” [Washington Post, 12/1/09] 

NYT: CBO Estimate Showed That Senate Bill “Could Significantly Reduce Costs For Many People Who Buy Health Insurance On Their Own, And That It Would Not Substantially Change Premiums For The Vast Numbers Of Americans Who Receive Coverage From Large Employers.” The New York Times reported that, “[t]he Congressional Budget Office said Monday that the Senate health bill could significantly reduce costs for many people who buy health insurance on their own, and that it would not substantially change premiums for the vast numbers of Americans who receive coverage from large employers…Before taking account of federal subsidies to help people buy insurance on their own, the budget office said the bill would tend to drive up premiums. But as a result of the subsidies, it said, most people in the individual insurance market would see their costs decline, compared with the costs expected under current law. The subsidies, a main feature of the bill, would cost the government nearly $450 billion in the next 10 years and would cover nearly two-thirds of premiums for people who receive them.” [New York Times, 12/1/09]

REALITY: HEALTH REFORM WOULD BE A NET TAX CUT FOR AMERICAN FAMILIES

JCT: Senate Bill Will Provide Nearly $450 Billion In Individual Income Tax Cuts. Jason Furman wrote on the White House Blog: “First, the health insurance reform bill being considered in the Senate does not raise taxes on families making less than $250,000 – in fact it is a substantial net tax cut for American families. The bill being considered represents a substantial net tax cut for middle income families. According to the independent Joint Committee on Taxation, the bill will provide nearly $450 billion in individual income tax cuts over the next 10 years.” [White House, 12/16/09]

Based On CBO Estimates, Under Senate Bill, Individuals Would Save From $200 To $2,500; Families Would Save $500 To $7,500 – “In Addition To The More Generous Benefits That These Groups Will Receive Through The [Health Insurance] Exchange.” Jonathan Gruber, MIT professor of economics and a health economics specialist wrote on the updated CBO estimates of the Senate health reform legislation: “I find that the savings are large for both singles and families, and that they are particularly large for the lowest income families that qualify for premium credits under the Senate Bill but would be left to face the full high non-group premium without legislation. In particular, I find that the single individual would save over $2,500 at low incomes (175% of poverty), and would save $200 even at higher incomes (425% of poverty or higher). For families, the savings are much larger, ranging from nearly $7,500 for low income families (at 175% of poverty) to $500 for higher incomes (425% of poverty of higher). It is worth noting that these savings are all in addition to the more generous benefits that these groups will receive through the exchange compared to the non-group market.” [Gruber, 11/27/09]

REALITY: MEDICARE SAVINGS DO NOT CUT BENEFITS, THEY STRENGTHEN MEDICARE

AARP: “This Bill Will Strengthen Medicare By Eliminating Cost Barriers To Preventive Care, Reform Medicare’s Payment…And Reduce Hospital Infections And Preventable Readmissions.” In a letter to Majority Leader Reid, AARP’s Barry Rand praised the Senate health reform bill: “This bill will strengthen Medicare by eliminating cost barriers to preventive care, reform Medicare’s payment and delivery system to promote care coordination, and reduce hospital infections and preventable readmissions. Moreover, through critical insurance market reforms and the establishment of exchanges, this bill will give the uninsured and small businesses access to quality affordable plans. The legislation also includes important provisions to strengthen home and community-based care and to assist individuals in saving to meet future long-term care needs.” [AARP Letter, 12/15/09]

Sen. Roberts (R-KS) Admitted That “It Is Technically Accurate” for Democrats to Claim That “This Bill Doesn’t Cut Medicare Benefits,” But Claimed Providers Would Not Be Able To Survive Cuts. On the Senate floor, Sen. Roberts said: “I keep hearing my colleagues, however, on the other side of the aisle insisting that they’re half trillion dollar cut to all Medicare – here’s the quote – ‘won’t affect the benefits.’ Please stop that. That is the most disingenuous smoke screen in this whole debate. It may be true. It may be true that this bill does not explicitly cut benefits…I want every senior to know that while maybe it is technically accurate again for my friends across the aisle to claim that this bill doesn’t cut Medicare benefits there is no way – no way that you can slash a half a trillion dollars from payments to providers without affecting their ability to keep their door open. Especially in rural and small-town America…So, yes, in fact, this bill will effectively cut benefits. Again, get rid of the smoke screen. And this just doesn’t apply to the home health care benefit.” [Roberts Floor Speech, 12/4/09]

• Hospitals Group Refuted CMS Actuary Report: “Hospitals Always Will Stand By Senior Citizens. This Summer, Hospitals Agreed To Contribute Substantial Medicare Savings Are Part Of Our Shared Sacrifice To Reform Health Care.” Politico Live Pulse reported: “The following statement was released today by Chip Kahn, President of the Federation of American Hospitals: Hospitals’ commitment to our mission of serving the health care needs of seniors in communities across America is steadfast. A memorandum recently issued by the CMS Actuary analyzing the effects of “America’s Affordable Health Choices Act of 2009” (H.R. 3962) concludes that some providers may end their participation in the Medicare program. Hospitals always will stand by senior citizens. This summer, hospitals agreed to contribute substantial Medicare savings as part of our shared sacrifice to reform health care and achieve near universal coverage for all Americans. We are pleased with the legislative progress as well as the movement towards market-based solutions. And we look forward to working with Congress and the Administration to enact legislation that will enable hospitals to continue to provide our patients, including seniors, with ready access to the highest quality health care possible.” [Politico Live Pulse, 11/16/09]

AARP: Senate Legislation Will “Improve The Quality, Value And Sustainability Of [Medicare] For Current And Future Beneficiaries,” And “The Legislation Does Not Reduce Any Guaranteed Medicare Benefits.” AARP CEO Barry Rand said in a letter: “With respect to Medicare, AARP supports policies to eliminate waste, fraud and abuse — and to improve the quality, value and sustainability of the program for current and future beneficiaries. The legislation before the Senate properly focuses on provider reimbursement reforms to achieve these important policy objectives. Most importantly, the legislation does not reduce any guaranteed Medicare benefits.” [AARP Statement, 12/2/09]

###