Train Wreck

It’s hard for us to not tell Democrats, “we told you so” when President Obama delayed the implementation of ObamaCare’s employer mandate to try and give political cover to Democrats like Allyson Schwartz who passed the bill before they even read it.

But despite the President’s ObamaCare train wreck, it is important to note that in the Pennsylvania ObamaCare conversation, no one has fought harder against its devastating effects than Governor Corbett. Governor Corbett asserted his opposition first as Attorney General by joining 28 other states in a lawsuit challenging the ObamaCare’s constitutionality. In 2012 as Governor, Governor Corbett rejected the ObamaCare’s exchanges as a gimmick that offered no flexibility from the federal government and passed an estimated $30 million in taxes on to Pennsylvania’s taxpayers.

As President Obama supports the biggest tax increase in our nation’s history and massive bureaucracy, Tom Corbett stands firm on protecting taxpayer dollars and reforming government.


Three Years Into ObamaCare And Amidst Increasing Unpopularity, Obama Punts Away His Employer Penalty Until After The 2014 Election

The Obama Administration Announced That It Would Delay The ObamaCare Penalty On Businesses That Don’t Provide Health Insurance Until 2015. “Businesses won’t be penalized next year if they don’t provide workers health insurance after the Obama administration decided to delay a key requirement under its health-care law, two administration officials said.” (Mike Dorning and Alex Wayne, “Health-Law Employer Mandate Said To Be Delayed To 2015,” Bloomberg, 7/2/13)

In Its Announcement, The Treasury Department Conceded That The Mandate’s Delay Was Due To “Concerns About The Complexity Of The Requirements.” “We have heard concerns about the complexity of the requirements and the need for more time to implement them effectively.” (Mark J. Mazur, “Continuing To Implement The ACA In A Careful, Thoughtful Manner,” U.S. Department Of Treasury’s Notes Blog, 7/2/13)

  • The Administration Was Forced To Delay The Penalty Due To Concerns About Businesses Adapting To The Law. “The two officials, who asked not to be identified to discuss the move ahead of its announcement, said the administration decided to wait until 2015 before enforcing the employer mandate in order to simplify reporting requirements and give businesses more time to adapt their health-care coverage.” (Mike Dorning and Alex Wayne, “Health-Law Employer Mandate Said To Be Delayed To 2015,” Bloomberg, 7/2/13)

“The Delay Is The Latest Snag To Hit” ObamaCare. “The delay is the latest snag to hit the Affordable Care Act, the biggest transformation in U.S. health care since the introduction of Medicare in the 1960s. New insurance exchanges designed to allow smaller businesses with as many as 100 workers to shop for coverage have faced difficulties getting off the ground in time for open-enrollment season this fall.” (Louise Radnofsky, “Health Law Penalties Delayed,” The Wall Street Journal, 7/2/13)

The Delay “Threatens To Throw Into Disarray The Administration’s Effort” To Implement ObamaCare’s Provisions By January 1. “While the postponement technically does not affect other central provisions of the law — in particular those establishing health insurance marketplaces in the states, known as exchanges, where uninsured Americans can shop for policies — it threatens to throw into disarray the administration’s effort to put those provisions into effect by Jan. 1.” (Jackie Calmes and Robert Pear, “Crucial Rule Is Delayed A Year For Obama’s Health Law,” The New York Times, 7/2/13)

  • CBS’s John Dickerson: “This Is Not Good. It Sort Of Contributes To The Feeling That The Affordable Care Act Is A Jalopy They’re Trying To Roll Out Of The Driveway Here, At Barely Operational For The President.”“DICKERSON: As a political matter, this is not good. It sort of contributes to the feeling that the affordable care act is a jalopy they’re trying to roll out of the driveway here, at barely operational for the president. So that’s not good. The White House made the decision though, take the pain now before the July 4th weekend rather than have the stories over the next year where companies are laying off workers or having such a hard time implementing this.” (CBS’s “This Morning,” 7/3/13)
  • ABC’s Rick Klein: “Any Assurance That You Had Before About How Smooth The Transition’s Gonna Be, That Is Now Under Serious Question Tonight.” KLEIN: “This is a huge priority for the Obama Administration and they have said — ‘We’ve got this one, we know that there are people out there that are wondering whether this law is unmanageable, whether it’s unworkable, don’t worry about it. Now they have said wait a second, even though we have had three plus years to work on this, another six months won’t be enough. We need another 18 months to make this become a reality.’ So any assurance you had before about how smooth the transition’s gonna be, that is now under serious question tonight.” (Fox News’ “On The Record,” 7/2/13)

ObamaCare’s “Unpopular” 1099 Tax-Reporting Provision Was Repealed. “President Obama on Thursday signed into law a measure that repeals the unpopular 1099 tax-reporting provision of the national health-care law.” (Felicia Somnez, “Obama Signs Repeal Of Health-Care Law’s ‘1099′ Tax-Reporting Rule,” The Washington Post, 4/14/11)

But The Delay Won’t Help The Businesses That Will Still Be Hit By ObamaCare’s Billions In Penalties In 2015

The Congressional Budget Office (CBO) Estimates That In 2015, Employers Will Pay $10 Billion Due To ObamaCare’s Employer Penalty. (“Estimate Of The Effects Of The Affordable Care Act On Health Insurance Coverage,” Congressional Budget Office, 5/14/13)

  • From 2013 To 2023, The CBO Projects That Employers Will Pay $140 Billion In ObamaCare Mandated Penalties. (“Estimate Of The Effects Of The Affordable Care Act On Health Insurance Coverage,” Congressional Budget Office,5/14/13)

Small Business Owners Plan To Hold Off On Expanding Their Business To Stay Below ObamaCare’s 50 Full-Time Employee Threshold. “To avoid the employer mandate, some small firms are considering other strategies, such as increasing employees’ share of the premiums, so they don’t have to shoulder the entire cost of offering benefits. Others say they will stay under the 50 full-time employee threshold or deliberately turn full-time workers into part-timers.” (Emily Maltby and Sarah E. Needleman, “Some Small Businesses Opt For The Health-Care Penalty,” The Wall Street Journal, 4/7/13)

  • Under ObamaCare, “41 Percent Of Small-Business Owners Say They Have Held Off On Hiring New Employees And 38 Percent Have Pulled Back On Plans To Grow Their Business.” “When asked if they had taken any of five specific actions in response to the ACA, 41% of small-business owners say they have held off on hiring new employees and 38% have pulled back on plans to grow their business.” (Dennis Jacobe, “Half of U.S. Small Businesses Think Health Law Bad for Them,” Gallup , 5/10/13; Gallup, 603 SBO, MoE 4%, 4/1-5/13)
  • “One In Five (19%) Have Reduced Their Number Of Employees And Essentially The Same Number (18%) Have Cut Employee Hours In Response To The Health Care Law.” (Dennis Jacobe, “Half of U.S. Small Businesses Think Health Law Bad for Them,” Gallup , 5/10/13; Gallup, 603 SBO, MoE 4%, 4/1-5/13)


Democrats Are Worried That ObamaCare Will Cause Them To Lose The Senate And Any Chance To Retake The House

The Mandate’s Delay “Takes A Controversial Component Of The Law Off The Table Before The Midterm Elections.” “The so-called employer mandate, which penalizes employers with more than 50 employees if they fail to provide a minimum standard of affordable health insurance, was set to kick-in in 2014, but now will take effect in 2015 the Treasury Department announced in a blog post first reported by Bloomberg News. The delay not only allows the administration time to alleviate concerns among business owners, but also takes a controversial component of the law off the table before the midterm elections.” (Zeke J Miller, “Obama Administration Delays Healthcare Law Employer Penalty Until 2015,” Time , 7/2/13)

  • The New York Times ‘ John Harwood: “The Administration, In Part I Think, Hopes To Get Some Benefit From Delaying These Penalties Until After The 2014 Elections.” HARWOOD: “One other point that we need to make on this is the political point. And that is that the Administration, in part I think, hopes to get some benefit from delaying these penalties until after the 2014 elections. They’ve been getting a lot of incoming from Republicans.” (CNBC’s ” The Kudlow Report ,” 7/2/13)
  • Time’s Mark Halperin: “The Politics Of It Are Huge. People Are Looking At The Fact That It Extends Beyond The Mid-Terms. Some People Are Saying They’re Trying To Avoid The Political Fallout.” HALPERIN: “The politics of it are huge. People are looking at the fact that it extends beyond the mid-terms. Some people are saying they’re trying to avoid the political fallout in the fight for Congress next year. But there’s also the question, and this is what opponents are saying is, ‘if this thing is a good idea, the plan is a good idea, why are we delaying it?’” (MSNBC’s “Way Too Early,” 7/3/13)

Democrats Were Already Worried That ObamaCare Would “Crush Their Hopes Of Big Gains In The Midterms.” “Democrats are fretting that ObamaCare is going to crush their hopes of big gains in the midterm elections, just like it cost them the house in 2010. And as bad-news headlines and big-time dips in the polls pile up, the signs of anxiety are starting to show.” (David Nather and Darren Samuelsohn, “Democrats Fret Over ObamaCare As 2014 Looms,” Politico , 4/30/13)

“There’s Plenty Of Evidence Piling Up To Believe Health Care Will Be A Political Millstone For Democrats In 2014.” “In the face of intraparty criticism that implementation of his health care law will be a ‘train wreck,’ new polls showing support for the law near all-time lows, and even the Democratic nominee in next week’s House special election calling the law ‘extremely problematic’- there’s plenty of evidence piling up to believe health care will be a political millstone for Democrats in 2014.” (Josh Kraushaar, “Obama’s Legacy: “A Health Care Law That Hurts His Party,” National Journal , 5/2/13)

  • 52 Percent Of Americans Disapprove Of ObamaCare. “Fifty-two percent of Americans say they disapprove of the 2010 Affordable Care Act, while 44% approve.” (Elizabeth Mendes, “Americans Wary Of Health Law’s Impact,” Gallup, 6/27/13; Gallup, 2,048 A, MoE 3%, 6/20-24/13)
  • 42 Percent Of Americans Say That ObamaCare Will Make Their Family’s Health Care Situation Worse. “Forty-two percent say that in the long run, the law will make their family’s health care situation worse; 22% say it will make it better.” (Elizabeth Mendes, “Americans Wary Of Health Law’s Impact,” Gallup, 6/27/13; Gallup, 2,048 A, MoE 3%, 6/20-24/13)
  • 47 Percent Of Americans Say That ObamaCare Will Make “The Health Care Situation In The U.S. Worse.” “And almost half believe the law will make the healthcare situation in the U.S. worse; 34% say it will make it better.” (Elizabeth Mendes, “Americans Wary Of Health Law’s Impact,” Gallup, 6/27/13; Gallup, 2,048 A, MoE 3%, 6/20-24/13)


Pennsylvania School Districts Are Being Forced To Reduce The Hours Of Employees

In Pennsylvania, ObamaCare Has Forced The East Penn School District To Reduce The Hours Of Eleven Food Service Employees. “Eleven East Penn School District food service employees will have their hours cut to 29.75 hours a week — just 15 minutes shy of the 30-hours-a-week that triggers the mandate that employers provide health benefits under ObamaCare.” (Margie Peterson, “East Penn Cuts Cafeteria Workers’ Hours To Avoid ObamaCare,” The Morning Call, 6/27/13)

Pennsylvania’s Southern Lehigh School District Has Had To Cut Hours Cutting Hours Over ObamaCare Mandates. “ Southern Lehigh School District is reducing the hours of secretaries, custodians, cafeteria workers and other part-timers so it doesn’t have to provide them with health care under the Affordable Care Act.” (Melinda Rizzo, “Southern Lehigh To Reduce Part-Time Hours To Avoid Obamacare,” The Morning Call , 6/13/13)

  • Other Districts In Pennsylvania’s Lehigh Valley Are Also Having To Reduce Employee Hours Due To ObamaCare. “Cash-strapped districts across the Lehigh Valley are weighing what to do with their part-timers. Earlier this month, Southern Lehigh School District reduced the hours of 51 part-timers to avoid a bigger health-care bill.” (Margie Peterson, “East Penn Cuts Cafeteria Workers’ Hours To Avoid ObamaCare,” The Morning Call, 6/27/13)


“The Medicaid program in Pennsylvania is on an unsustainable path. The cost of the current program is over 30 percent of the entire Pennsylvania General Fund budget and continues to grow. For Fiscal Year 2013-2014 the Department of Public Welfare’s costs are projected to grow by over $400 million in new state-only dollars.”

“Our initial estimates show that a Medicaid expansion under the ACA would cost Pennsylvania almost $1 billion of new state taxpayer dollars through fiscal year 2015-2016 — ultimately rising to a total cost of over $4.1 billion of new state taxpayer dollars by the end of fiscal year 2020-2021. Without reform, the only way to support these costs would be a large tax increase on Pennsylvania families.”

“In referring to Medicaid, President Obama recognized in 2009, ‘we can’t simply put more people into a broken system that doesn’t work.’ However, the President is asking us to do exactly that by expanding Medicaid without true reforms. Instead of insisting that states put more people into a broken system, you should examine and propose solutions that empower states to make the program work for their citizens and become sustainable for taxpayers.”

“Washington needs to stop treating Medicaid as a one-size-fits-all mandate and start granting states true flexibility to successfully reform and build a system that works for them.”(Governor Corbett Asks Federal Government for Medicaid Reform. Office of the Governor. 2/5/2013.)