The Pipes Plan: The Top Ten Ways to Dismantle Obamacare
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The Pipes Plan - Sally C. Pipes
Praise for
The Pipes Plan
"Superb insights in this most critical area! All our health will be helped enormously if the next president follows Sally’s blueprint."
—Steve Forbes, chairman, CEO, and editor-in-chief of Forbes
"You would be hard-pressed to find a more informed and informative voice on the condition of health care in America than Sally Pipes. Her new book, The Pipes Plan, suggests a welcome alternative to the current misguided national policy and a path to real reform."
—Mitch Daniels, governor of Indiana
"The Pipes Plan is not just a well-written book; it is a reference manual for politicians, physicians, and citizen activists because all of us will be patients some day and Obamacare will affect us all negatively if allowed to stand."
—Hal Scherz, M.D., F.A.C.S., F.A.A.P., founder and president of Docs4PatientCare
This is the book that will lead the way to repealing one of the most disastrous pieces of legislation in modern American history.
—Arthur B. Laffer, Ph.D., economist, member of Ronald Reagan’s Economic Policy Advisory Board
THE
PIPES
PLAN
The Top Ten Ways
to Dismantle and
Replace Obamacare
SALLY C. PIPES
Regnerylogo.epsCopyright © 2012 by Sally C. Pipes
All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical, including photocopy, recording, or any information storage and retrieval system now known or to be invented, without permission in writing from the publisher, except by a reviewer who wishes to quote brief passages in connection with a review written for inclusion in a magazine, newspaper, or broadcast.
First ebook edition © 2012
eISBN: 978-1-59698-793-7
The Library of Congress has cataloged the hardcover edition as follows:
Pipes, Sally, 1945-
The pipes plan / Sally C. Pipes.
p. cm.
Includes bibliographical references and index.
ISBN 978-1-59698-310-6
1. Health care reform—United States. 2. Medical care—United States.
3. Medical policy—United States. I. Title.
RA395.A3P56 2012
362.10973—dc23
2011047344
Published in the United States by
Regnery Publishing, Inc.
One Massachusetts Avenue NW
Washington, DC 20001
www.regnery.com
Manufactured in the United States of America
10 9 8 7 6 5 4 3 2 1
Books are available in quantity for promotional or premium use. Write to Director of Special Sales, Regnery Publishing, Inc., One Massachusetts Avenue NW, Washington, DC 20001, for information on discounts and terms or call (202) 216-0600.
Distributed to the trade by
Perseus Distribution
387 Park Avenue South
New York, NY 10016
To my husband Charles Kesler and Maggie.
Without their unstinting encouragement
and support of my health care work,
this book would not have been possible.
I owe them so much.
CONTENTS
Foreword
by Arthur B. Laffer
Introduction
Making Repeal a Reality
Chapter 1
Broken Promises: Why Obamacare Won’t Achieve Universal Coverage—or Lower Health Care Costs
Chapter 2
Get Rid of Obamacare’s Mandates
Chapter 3
Exchange Obamacare’s Heavily Regulated Insurance Exchanges
for Real Competition
Chapter 4
Mandating Our Way to Health Utopia
Chapter 5
End Obamacare’s Taxes Before They End Life-Saving Innovation in Medical Care
Chapter 6
Waive Government by Waiver
Chapter 7
Reform Medicaid, Don’t Simply Expand It
Chapter 8
Repeal the CLASS Act—Budget-Busting Government Overreach
Chapter 9
Save Medicare from Bankruptcy
Chapter 10
Fully Fund Temporary High-Risk Insurance Pools for Those with Pre-Existing Conditions
Conclusion
The Road Ahead
Acknowledgments
Notes
Foreword
by Arthur B. Laffer
This is the book that will lead the way to repealing one of the most disastrous pieces of legislation in modern American history.
The Patient Protection and Affordable Care Act—Obamacare’s official name—exceeds 2,000 pages and aims to put one-sixth of the U.S. economy under the federal government’s control. Thousands more pages of dense regulations are currently being cobbled together by a bizarre cabal of government bureaucrats, politically favored special interests, and well-connected ideologues. Not surprisingly, Obamacare is gumming up the American health care system—and the entire economy—with alarming speed.
Sally Pipes was among the first to lay bare the implications, deceptions, and economic insanity of the act now, think later
mentality that drove the law’s passage. Her 2010 book The Truth About Obamacare became an overnight sensation, educating countless Americans in simple terms about the contents of President Obama’s signature piece of legislation.
Her new book, The Pipes Plan, lays the groundwork for the law’s repeal. Sally has given us an essential handbook for rolling the Affordable Care Act back—and replacing it with real reforms that improve American health care and reduce long-term costs.
In ten succinct and well-argued chapters, Sally surveys what Obamacare actually does—and what will happen if the law is not scrapped soon.
She shows how Obamacare is already undermining the American medical system’s ability to provide revolutionary cures and treatments to patients. The heavy hand of government could curtail an era of ground-breaking innovation in health care before it even starts. Our lives literally depend on the outcome of this fight.
In courtrooms around the country, judges are rendering their verdicts on the constitutionality of the president’s reform plan. The Supreme Court will surely have its say. But the American people can have the final word, by pressuring their elected representatives to repeal and replace Obamacare.
Of course, full repeal can only happen in early 2013 if Republicans take the presidency and Senate and hold onto their majority in the House. In the meantime, bills have been introduced to repeal specific parts of the law.
There was a time when we could go about our lives secure in the knowledge that the uniquely American dynamic of freedom and enterprise would continue to govern our society. Obamacare threatens that dynamic. The Pipes Plan sounds the alarm—and provides us with the intellectual firepower to make a difference.
So whether you’re a patient with an acute or long-term medical issue struggling to make sense of the future, a legislator in search of sensible alternatives, or a concerned citizen looking to engage in the public debate, The Pipes Plan is an essential resource. Read it, put it on your bookshelf, and pass it on to your family, friends, and colleagues.
Introduction
Making Repeal a Reality
On March 23, 2010, President Obama forever altered the American health care system by signing the Patient Protection and Affordable Care Act (PPACA) into law. Its advocates promised that the measure would reinvent American health care and reinvigorate the American economy. As House Minority Leader Nancy Pelosi (D-CA) put it, This bill is not only about the health security of America, it’s about jobs. In its life it will create 4 million jobs, 400,000 jobs almost immediately.
1
Boy, were they wrong.
It’s becoming more apparent with each passing day that Obamacare will devastate American health care as well as the health of our citizens—and further damage our country’s fragile finances. The PPACA is expected to cost in excess of $2.5 trillion over the decade beginning in 2014 because of the expansion of Medicaid, federal tax subsidies, the hiring of 16,000 new IRS agents, and the bans on lifetime and annual coverage caps and on discrimination based on pre-existing conditions.2
Implementing the law has been extremely challenging. It’s tough to completely remake our health care system overnight. After all, it already accounts for one-sixth of the American economy, about $2.5 trillion—and in July 2011 authors from the Centers for Medicare & Medicaid Services (CMS) reported in the journal Health Affairs that by 2020, national health care spending will rise to $4.6 trillion, one-fifth of the American economy.3
Certain provisions of the president’s reform plan kicked in immediately. But many of Obamacare’s main provisions and cost drivers do not take effect until 2014. As of mid-July 2011, there are more than 9,000 pages of rules and Federal Register notices related to Obamacare.4
Consequently, there is still time to reverse course. Our congressional leaders can repeal Obamacare and replace it with market-based reforms that actually expand access to coverage, provide quality care, and reduce the cost of health care.
This book provides a blueprint and a roadmap for accomplishing that mission. It examines ten key components of Obamacare and shows why each one doesn’t work, how to eliminate it, and what reform to put in its place.
In Chapter One, we’ll see how Obamacare is already failing in two key respects: it isn’t dramatically expanding coverage or bringing down health care costs. These were the two main goals President Obama wanted to achieve with Obamacare. But several analyses of the law released since its passage portend fiscal and health care disaster in the very near future.
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