Caterpillar: Health Care Bill Would Cost it $100M

[bonnie]

Caterpillar: Health care bill would cost it $100M

Published on March 19, 2010 7:10 AM | Submit a comment

Caterpillar.jpgA worker at Caterpillar's plant in Mossville, Ill. (José Moré/Chicago Tribune)

Dow Jones Newswires | Caterpillar Inc. said the health-care overhaul legislation being considered by the U.S. House of Representatives would increase the company's health-care costs by more than $100 million in the first year alone.

In a letter Thursday to House Speaker Nancy Pelosi (D-Calif.) and House Republican Leader John Boehner of Ohio, Caterpillar urged lawmakers to vote against the plan "because of the substantial cost burdens it would place on our shareholders, employees and retirees."

Caterpillar, the world's largest construction machinery manufacturer by sales, said it's particularly opposed to provisions in the bill that would expand Medicare taxes and mandate insurance coverage. The legislation would require nearly all companies to provide health insurance for their employees or face large fines.

The Peoria-based company said these provisions would increase its insurance costs by at least 20 percent, or more than $100 million, just in the first year of the health-care overhaul program.

"We can ill-afford cost increases that place us at a disadvantage versus our global competitors," said the letter signed by Gregory Folley, vice president and chief human resources officer of Caterpillar. "We are disappointed that efforts at reform have not addressed the cost concerns we've raised throughout the year."

Business executives have long complained that the options offered for covering 32 million uninsured Americans would result in higher insurance costs for those employers that already provide coverage. Opponents have stepped up their attacks in recent days as the House moves closer toward a vote on the Senate version of the health-care legislation.

A letter Thursday to President Barack Obama and members of Congress signed by more than 130 economists predicted the legislation would discourage companies from hiring more workers and would cause reduced hours and wages for those already employed.

Caterpillar noted that the company supports efforts to increase the quality and the value of health care for patients as well as lower costs for employer-sponsored insurance coverage.

"Unfortunately, neither the current legislation in the House and Senate, nor the president's proposal, meets these goals," the letter said.

[karl]

Do you mean the libs are WRONG? They said everyone would save money!!!!

How can this be, that somebody has to pay for this? That is just totally wrong. Everything is supposed to be free, or at least cheaper, when libs are in control, isn't it?

[Neil D]

Do you mean the libs are WRONG? They said everyone would save money!!!!

How can this be, that somebody has to pay for this? That is just totally wrong. Everything is supposed to be free, or at least cheaper, when libs are in control, isn't it?

Catapillar is known to be bias toward republicans. Since Republicans are in such a powerless position, it is incumbant upon thier shareholders to voice as much as they can to support their republican values.

Second, the Office of the GAO [?] is the goverment's cost department and is charged to tell the truth about costs of goverment spending. It doesn't matter who is in office, they seek out the bottom line. And they say that the Obama's health care bill will SAVE over $10 Billion over 10 years....Go figure, Karl....

GAO

[bonnie]

Quote:

Catapillar is known to be bias toward republicans. Since Republicans are in such a powerless position, it is incumbant upon thier shareholders to voice as much as they can to support their republican values.

Second, the Office of the GAO [?] is the goverment's cost department and is charged to tell the truth about costs of goverment spending. It doesn't matter who is in office, they seek out the bottom line. And they say that the Obama's health care bill will SAVE over $10 Billion over 10 years....Go figure, Karl....

GAO

In view of your unwavering support for Obama and friends with health care I have a great deal for you.One I would offer to all Obama supporters in this so called health care bill.

I have a terrific house to sell you,will take care of all your needs. You don't need all the details or the price until after you sign the papers.I don't know all the details yet but I am sure when I get it all worked out you are going to love the deal. You begin paying as soon as you have signed the papers but will have to wait 3-4 years before you can live in it.

This is exactly what is going on with the so called health care bill.

[Neil D]

In view of your unwavering support for Obama and friends with health care I have a great deal for you.One I would offer to all Obama supporters in this so called health care bill.

I have a terrific house to sell you,will take care of all your needs. You don't need all the details or the price until after you sign the papers.I don't know all the details yet but I am sure when I get it all worked out you are going to love the deal. You begin paying as soon as you have signed the papers but will have to wait 3-4 years before you can live in it.

This is exactly what is going on with the so called health care bill.

Not really....here's what the bill Will do ...And the CBO has stated that the bill will save money in the long term....

[bonnie]

Originally Posted By: bonnie

In view of your unwavering support for Obama and friends with health care I have a great deal for you.One I would offer to all Obama supporters in this so called health care bill.

I have a terrific house to sell you,will take care of all your needs. You don't need all the details or the price until after you sign the papers.I don't know all the details yet but I am sure when I get it all worked out you are going to love the deal. You begin paying as soon as you have signed the papers but will have to wait 3-4 years before you can live in it.

This is exactly what is going on with the so called health care bill.

Not really....here's what the bill Will do ...And the CBO has stated that the bill will save money in the long term....

In the 60's the CBO stated Medicare would not exceed 12 billion.By 1997? it exceeded over 90 billion.

Obama,Pelosi and other dems freely admit to not knowing what is in the bill. Pelosi said the american people would have to vote and pass before they would know.Obama says he doesn't know what is in the bill but the important thing is passing it.

[bonnie]

Originally Posted By: bonnie

In view of your unwavering support for Obama and friends with health care I have a great deal for you.One I would offer to all Obama supporters in this so called health care bill.

I have a terrific house to sell you,will take care of all your needs. You don't need all the details or the price until after you sign the papers.I don't know all the details yet but I am sure when I get it all worked out you are going to love the deal. You begin paying as soon as you have signed the papers but will have to wait 3-4 years before you can live in it.

This is exactly what is going on with the so called health care bill.

Not really....here's what the bill Will do ...And the CBO has stated that the bill will save money in the long term....

About those CBO numbers...

Rick Moran

The Democrats were crowing yesterday that their latest version of health care reform - the senate bill passed Christmas eve plus the reconciliation fixes the House wants to send along to the senate - came in at a "cost" of $940 billion, with "savings" to the budget of $138 billion and a 20 year deficit reduction overall of $2.1 trillion.

That sounds - well, not impressive when you think about it as I point out in my PJ Media column:

The reason I have "cost" and "savings" in quotes is because the numbers are based on premises that only Lewis Carroll could love. For it appears that the CBO made a trip to Wonderland in order to come up with "costs" and "savings" that bear such little semblance to reality.

It's been known for many months that the cost of the health care bill has been phoney baloney budgetary gimmicks. Most of the costs of the bill won't kick in until 2013, while the bulk of the costs would be picked up in the next six years. A true cost of this bill over the first ten years (2013-2023) is well into the trillions of dollars.

CBO makes no apologies for basing their projections on what they acknowledge is tomfoolery. Nor do they seem to see it as their job to highlight this legislative legerdemain.

I guess that's why they're "non-partisan." They cooperate in hoodwinking the American people with both parties.

Also, it is bizarre that Democrats would cheer a savings to the government of $138 billion over a decade when the CBO estimated last August that the cumulative deficit over that same period is going to be $7.1 trillion.

Not a very big dent in the monster, wouldn't you say?

Indeed, as Jeffrey Anderson of the Weekly Standard points out, the actual number the CBO gives for Obamacare over the decade 2013-2023 - the first 10 years the entire plan is enacted - comes to more than $2 trillion over that period:

But under strict instructions from Democratic leaders, and over strong objections from Republicans, the CBO dutifully scored 2010 as the first year of the latest version of Obamacare. If the clock were started in 2011, the first full year that the bill could possibly be in effect, the CBO says that the bill's ten-year costs would be $1.2 trillion.

But even that wouldn't come close to reflecting the bill's true costs. The CBO projects that over the next four years, less than two percent of the bill's alleged "ten year" costs would hit: just $17 billion of the $940 billion in costs that the Democrats are claiming. In fact, the costs through President Obama's entire presidency, should he be reelected, would be $336 billion. What would the president leave behind for his successor? According to the CBO, he would leave behind costs of $837 billion during his successor's first term alone. If his successor were to serve a second term, he or she would inherit a cool $2.0 trillion in Obamacare costs - about six times its costs during Obama's own tenure. This legislation is a ticking time-bomb.

To see the bill's true first-decade costs, we need to start the clock when the costs would actually start in any meaningful way: in 2014. The CBO says that Obamacare would cost $2.0 trillion in the bill's real first decade (from 2014 to 2023) - and much more in the decades to come.

On top of all this, the idea that anyone has ever come close to estimating the cost of any health care entitlement over the years is absurd, as this Washington Times article noted:

In 1965, the House Ways and Means Committee estimated that the hospital insurance program of Medicare - the federal health care program for the elderly and disabled - would cost $9 billion by 1990. The actual cost that year was $67 billion.

In 1967, the House Ways and Means Committee said the entire Medicare program would cost $12 billion in 1990. The actual cost in 1990 was $98 billion.

In 1987, Congress projected that Medicaid - the joint federal-state health care program for the poor - would make special relief payments to hospitals of less than $1 billion in 1992. Actual cost: $17 billion.

And history has shown that the farther out the CBO tries to project, the more spectacularly inaccurate they become.

It appears that the Democrats are going to take these fake CBO numbers and try to convince reluctant congressmen that they can run on them in November.

Good luck with that.

[bonnie]

Most that have ever run a business and been responsible for the bottom line understand they cannot afford this "great savings"

For a man that does not want to be responsible for his own co-pays and yet have prompt care you may be in for a shock.

My brother has closed down.He was retirement age with no plans to retire. Many of his peers have done same. They cannot afford the "Obama scheme"

Others have had to close for financial reasons. Those still solvent had no intention of watching many years of work go down the tube because of Obama care.

They pay more attention to the fine print than those that want their medical care taken care of by the government

[Neil D]

Obama,Pelosi and other dems freely admit to not knowing what is in the bill. Pelosi said the american people would have to vote and pass before they would know.Obama says he doesn't know what is in the bill but the important thing is passing it.

Um, perhaps they didn't know the final FORM that the bill was going to be but this is what Obama said WILL happen once this bill is signed into law-

And since you’ve been hearing a whole bunch of nonsense, let’s just be clear on what exactly the proposal that they’re going to vote on in a couple of days will do. It’s going to -- it’s going to change health care in three ways. Number one, we are going to end the worst practices of insurance companies. (Applause.) This is -- this is a patient’s bill of rights on steroids. (Laughter.) Starting this year, thousands of uninsured Americans with preexisting conditions will be able to purchase health insurance, some for the very first time. (Applause.) Starting this year, insurance companies will be banned forever from denying coverage to children with preexisting conditions. (Applause.) Starting this year, insurance companies will be banned from dropping your coverage when you get sick. (Applause.) And they’ve been spending a lot of time weeding out people who are sick so they don’t have to pay benefits that people have already paid for. Those practices will end.

If this reform becomes law, all new insurance plans will be required to offer free preventive care to their customers. (Applause.) If you buy a new plan, there won’t be lifetime or restrictive annual limits on the amount of care you receive from your insurance companies. (Applause.) And by the way, to all the young people here today, starting this year if you don’t have insurance, all new plans will allow you to stay on your parents’ plan until you are 26 years old. (Applause.)

So you’ll have some security when you graduate. If that first job doesn’t offer coverage, you’re going to know that you’ve got coverage. Because as you start your lives and your careers, the last thing you should be worried about is whether you’re going to go broke or make your parents broke just because you get sick. (Applause.) All right?

So that’s the first thing this legislation does -- the toughest insurance reforms in history. And by the way, when you talk to Republicans and you say, well, are you against this? A lot of them will say, no, no, that part’s okay. (Laughter.) All right, so let’s go to the second part.

The second thing that would change about the current system is that for the first time, small business owners and people who are being priced out of the insurance market will have the same kind of choice of private health insurance that members of Congress give to themselves. (Applause.)

So what this means is, is that small business owners and middle-class families, they’re going to be able to be part of what’s called a big pool of customers that can negotiate with the insurance companies. And that means they can purchase more affordable coverage in a competitive marketplace. (Applause.) So they’re not out there on their own just shopping. They’re part of millions of people who are shopping together. And if you still can’t afford the insurance in this new marketplace, even though it’s going to be cheaper than what you can get on your own, then we’re going to offer you tax credits to help you afford it -– tax credits that add up to the largest middle-class tax cut for health care in American history. (Applause.)

Now, these tax credits cost money. Helping folks who can’t afford it right now, that does cost some money. It costs about $100 billion per year. But most of the cost --

AUDIENCE MEMBER: That’s all right. (Laughter.)

THE PRESIDENT: Well, here’s the reason it’s all right. (Laughter.) Here’s the reason it’s all right. It wouldn’t be all right if we weren’t paying for it -- and by the way, that's what a previous Congress did with the prescription drug plan. All they did was they gave the benefits and they didn’t pay for it.

That's not what we’re doing. What we’re doing is we’re taking money that America is already spending in the health care system, but is being spent poorly, that's going to waste and fraud and unwarranted subsidies for the insurance companies, and we’re taking that money and making sure those dollars go towards making insurance more affordable. (Applause.)

So we’re going to eliminate wasteful taxpayer subsidies to insurance companies. (Applause.) We’re going to set a new fee on insurance companies that stand to gain millions of new customers. (Applause.) So here’s the point: This proposal is paid for. Unlike some of these previous schemes in Washington, we’re not taking out the credit card in your name, young people, and charging it to you. We’re making sure this thing is paid for. (Applause.) All right, so that's the second thing.

Now, the third thing that this legislation does is it brings down the cost of health care for families and businesses and the federal government. (Applause.) Americans who are buying comparable coverage in the individual market would end up seeing their premiums go down 14 to 20 percent. (Applause.) Americans who get their insurance through the workplace, cost savings could be as much as $3,000 less per employer than if we do nothing. Now, think about that. That’s $3,000 your employer doesn’t have to pay, which means maybe she can afford to give you a raise. (Applause.)

And by the way, if you’re curious, well, how exactly are we saving these costs? Well, part of it is, again, we’re not spending our health care money wisely. So, for example, you go to the hospital or you go to a doctor and you may take five tests, when it turns out if you just took one test, then you send an e-mail around with the test results, you wouldn’t be paying $500 per test. So we’re trying to save money across the system. (Applause.) And altogether, our cost-cutting measures would reduce most people’s premiums. And here’s the bonus: It brings down our deficit by more than $1 trillion over the next two decades. (Applause.)

So you’ve got -- you’ve got a whole bunch of opponents of this bill saying, well, we can’t afford this; we’re fiscal conservatives. These are the same guys who passed that prescription drug bill without paying for it, adding over $1 trillion to our deficit -- “Oh, we can’t afford this.” But this bill, according to the Congressional Budget Office -- which is the referee, the scorekeeper for how much things cost -- says we’ll save us $1 trillion. Not only can we afford to do this, we can’t afford not to do this. (Applause.)

So here’s the bottom line. That’s our proposal: toughest insurance reforms in history, one of the biggest deficit-reduction plans in history, and the opportunity to give millions of people -- some of them in your own family, some of the people who are in this auditorium today -- an opportunity for the first time in a very long time to get affordable health care. That’s it. That’s what we’re trying to do. (Applause.) That’s what the Congress of the United States is about to vote on this weekend.

And YOU say he don't know what's in his bill... Why if I didn't know better, I'd be saying that you listened to lies and are spreading lies and can't help but hear lies, bless your heart....

[bonnie]

Quote:

Um, perhaps they didn't know the final FORM that the bill was going to be but this is what Obama said WILL happen once this bill is signed into law-

Obama is being a bit less than truthful with his claims against the insurance companies

Quote:

And since you’ve been hearing a whole bunch of nonsense, let’s just be clear on what exactly the proposal that they’re going to vote on in a couple of days will do. It’s going to -- it’s going to change health care in three ways. Number one, we are going to end the worst practices of insurance companies. (Applause.) This is -- this is a patient’s bill of rights on steroids. (Laughter.) Starting this year, thousands of uninsured Americans with preexisting conditions will be able to purchase health insurance, some for the very first time. (Applause.) Starting this year, insurance companies will be banned forever from denying coverage to children with preexisting conditions. (Applause.) Starting this year, insurance companies will be banned from dropping your coverage when you get sick. (Applause.) And they’ve been spending a lot of time weeding out people who are sick so they don’t have to pay benefits that people have already paid for. Those practices will end.

They cannot weed out people who have paid their premiums and have not lied on their application. As in all his sob stories he leaves crucial details out when explaining what the evil insurance company has done. Obama really needs to brush up on the existing laws before he takes credit.

Lacking his explanation explain to me why I should carry insurance until a serious health issue arises? I can get by a lot cheaper paying the smaller fine to the government. For my upcoming surgery why not wait till that day to purchase insurance,if all goes well cancel afterwards?

Quote:

If this reform becomes law, all new insurance plans will be required to offer free preventive care to their customers. (Applause.) If you buy a new plan, there won’t be lifetime or restrictive annual limits on the amount of care you receive from your insurance companies. (Applause.) And by the way, to all the young people here today, starting this year if you don’t have insurance, all new plans will allow you to stay on your parents’ plan until you are 26 years old. (Applause.)

Can't wait to see what this does to premiumns for people stupid enough to carry insurance till sick.

Quote:

So you’ll have some security when you graduate. If that first job doesn’t offer coverage, you’re going to know that you’ve got coverage. Because as you start your lives and your careers, the last thing you should be worried about is whether you’re going to go broke or make your parents broke just because you get sick. (Applause.) All right?

A really novel concept,Once an adult,act like one. Buy your own. I have never heard one 26 year old wring his hands over insurance and the fear of going broke.Besides they cannot be denied when a serious issue arises.What is it they are worried about when they can purchase insurance for pre-existing conditions?

So that’s the first thing this legislation does -- the toughest insurance reforms in history. And by the way, when you talk to Republicans and you say, well, are you against this? A lot of them will say, no, no, that part’s okay. (Laughter.) All right, so let’s go to the second part.

Quote:

The second thing that would change about the current system is that for the first time, small business owners and people who are being priced out of the insurance market will have the same kind of choice of private health insurance that members of Congress give to themselves. (Applause.)

What a joke.A republican asked for a show of hands of all those in congress that would drop their insurance and sign on to Obama's plan. Can you guess how many refused to do so.Wonder why that would be if it is the same?

He will price small businesses out of the insurance market and they will pay the penalty and let them have their government option. What kind of fools does he think small business people are.Of course he would really have to listen to them to know how foolish he sounds to any that have run a small business

Quote:

So what this means is, is that small business owners and middle-class families, they’re going to be able to be part of what’s called a big pool of customers that can negotiate with the insurance companies. And that means they can purchase more affordable coverage in a competitive marketplace. (Applause.) So they’re not out there on their own just shopping. They’re part of millions of people who are shopping together. And if you still can’t afford the insurance in this new marketplace, even though it’s going to be cheaper than what you can get on your own, then we’re going to offer you tax credits to help you afford it -– tax credits that add up to the largest middle-class tax cut for health care in American history. (Applause.)

We were a middle class family.When we carried Blue Cross-Blue Shield it was affordable and I did not need Obama's help in paying for it.

Quote:

THE PRESIDENT: Well, here’s the reason it’s all right. (Laughter.) Here’s the reason it’s all right. It wouldn’t be all right if we weren’t paying for it -- and by the way, that's what a previous Congress did with the prescription drug plan. All they did was they gave the benefits and they didn’t pay for it.

I think this is another lie for Obama. Will have to double check but I believe this is one of the rare government plans that did pay for itself

Quote:

That's not what we’re doing. What we’re doing is we’re taking money that America is already spending in the health care system, but is being spent poorly, that's going to waste and fraud and unwarranted subsidies for the insurance companies, and we’re taking that money and making sure those dollars go towards making insurance more affordable. (Applause.)

Maybe what he needs to do is take care of the waste and fraud before he goes to socialized medicine

Quote:

And by the way, if you’re curious, well, how exactly are we saving these costs? Well, part of it is, again, we’re not spending our health care money wisely. So, for example, you go to the hospital or you go to a doctor and you may take five tests, when it turns out if you just took one test, then you send an e-mail around with the test results, you wouldn’t be paying $500 per test. So we’re trying to save money across the system. (Applause.) And altogether, our cost-cutting measures would reduce most people’s premiums. And here’s the bonus: It brings down our deficit by more than $1 trillion over the next two decades. (Applause.)

The next to the last person I would trust making wise decisions about my health care is a politician. The last person I would trust is Obama.Again his brillant solution is a day late and a dollar short. My family Dr has done same for as long as I have gone to him.Again just recently with my knee.Faxing his results to the orthopedic surgeon meant the tests did not need to be run by another. Maybe Dr's are just smarter in MN

Quote:

So here’s the bottom line. That’s our proposal: toughest insurance reforms in history, one of the biggest deficit-reduction plans in history, and the opportunity to give millions of people -- some of them in your own family, some of the people who are in this auditorium today -- an opportunity for the first time in a very long time to get affordable health care. That’s it. That’s what we’re trying to do. (Applause.) That’s what the Congress of the United States is about to vote on this weekend.

When you give out handouts you generally do get more takers

And YOU say he don't know what's in his bill... Why if I didn't know better, I'd be saying that you listened to lies and are spreading lies and can't help but hear lies, bless your heart....

No,I listened to him.I listened to Nancy Peolsi say the american people would have to vote on it so they could find out what is in it. I listened to Joe Biden say "we are going to control the insurance companies"

And in typical fashion he speaks in generalities. Let's hear what insurance premiums will cost.What covering any and all pre-existing conditions will cost those without that.

Let's hear why businesses will prefer to pay higher premiums than the smaller fine to the government.

What services will be cut in medicare.