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Supreme Court Upholds Debbie Stabenow’s Massive Tax Increase & Medicare Cuts On Michigan Seniors

Decision Sets The Stakes For November’s Election

Two years after U.S. Senator Debbie Stabenow (D-MI) provided the deciding vote to ram ObamaCare through Congress, the Supreme Court today has affirmed Stabenow’s decision to put President Obama’s agenda ahead of Michigan seniors and small businesses.  In doing so, the Court has made clear what is at stake in November’s election.

“The Supreme Court’s decision makes clear in this election – the only way to stop the massive tax increases, government spending, and cuts to Medicare contained in ObamaCare is to replace liberal Debbie Stabenow in Washington,” National Republican Senatorial Committee (NRSC) spokesman Lance Trover said today.  

BACKGROUND….

Stabenow Voted for ObamaCare, Calling It a Jobs Bill

Stabenow Voted To Pass The Senate Version Of The $2.5 Trillion Obama-Reid Health Care Bill. (H.R. 3590, CQ Vote #396: Passed 60-39: R 0-39; D 58-0; I 2-0, 12/24/09, Stabenow Voted Yea)

  • Stabenow Provided The 60th Vote To Invoke Cloture On The Senate Health Care Bill. (H.R. 3590, CQ Vote #395: Motion agreed to 60-39: R 0-39; D 58-0; I 2-0, 12/23/09, Stabenow Voted Yea)

Stabenow Voted To Kill An Amendment That Would Have Removed The Individual Mandate From The Health Care Bill. “Baucus, D-Mont., motion to table (kill) the Ensign, R-Nev. amendment no. 3710 that would repeal provisions of the 2010 health care overhaul law that provide for IRS penalties for certain taxpayers that do not obtain basic health insurance coverage.” (H.R. 4872, CQ Vote #101: Motion agreed to 58-40: R 0-40; D 56-0; I 2-0, 3/25/10, Stabenow Voted Yea) 

Stabenow Called Health Care Reform “A Jobs Bill.” STABENOW: “Frankly, it’s as much a jobs bill as anything else, certainly in my state, where we’re losing jobs because of rising health-care costs. So we’re anxious to get it done.” (MSNBC’s, “Countdown,” 3/16/10)

ADDITIONAL BACKGROUND…

The Cost Of ObamaCare To Michigan Alone

Cost To State

The Heritage Foundation Estimates From 2014 To 2020 ObamaCare Will Cost Michigan An Additional $537.5 Million. (Edmund Haislmaier and Brian Blasé, “Obamacare: Impact On States,” The Heritage Foundation, 7/1/10)

According To A State Senate Analysis, In 2014, ObamaCare Will Cost Michigan $200 Million Per Year. “The 2014 Medicaid expansion would not have any initial State costs. By 2020, the State would be paying roughly $200.0 million General Fund/General Purpose (GF/GP) yearly to support the costs of the expansion.” (Steve Angelotti and David Fosdick, “Fiscal Analysis Of The Federal Health Reform Legislation,” Michigan Senate, 4/10)

In 2010, Healthcare Spending In Michigan Accounted For $33.8 Billion, Or 8.8 Percent Of The State’s GDP. (“Gross Domestic Product By State (GDP By State) Interactive Maps,” Bureau Of Economic Analysis, Accessed 5/20/12)

Insurance Premiums Increasing

In 2011, Michigan Family Health Insurance Plan Premiums Increased 2.4 Percent. “Monthly premiums for a family health plan grew to an average $1,007 for 2011, an increase of 2.4 percent from 2010.” (Mark Sanchez, “Survey: Health Insurance Premium Increases Moderate, Wellness Grows,” Business Review West Michigan, 8/3/11)

In 2011, Michigan Two-Person Health Insurance Plan Premiums Increased 4.7 Percent. “Premiums for a two-person plan increased an average of 4.7 percent to $799 per month … according to the annual cost survey conducted by The Employers’ Association and Alliance for Health in Grand Rapids.” (Mark Sanchez, “Survey: Health Insurance Premium Increases Moderate, Wellness Grows,” Business Review West Michigan, 8/3/11)

High-Deductible Plans And Increased Co-Pays Moderated Rate Hikes. “Changes in benefit packages — with more high-deductible plans in place, plus increased co-pays and more employees sharing the cost of premiums — could partly account for the moderating increases, Alliance for Health President Lody Zwarensteyn said.” (Mark Sanchez, “Survey: Health Insurance Premium Increases Moderate, Wellness Grows,” Business Review West Michigan, 8/3/11)

In 2011, Michigan Employees Paid A Larger Share Of Their Premiums Than In 2010. “Among the changes employers continue to make — as they have for many years — is requiring employees to pay a higher share of the premium. The percentage of the employee contribution to the premium increased to 27 percent in 2011 from 24 percent in 2010 for both family two-person plans.” (Mark Sanchez, “Survey: Health Insurance Premium Increases Moderate, Wellness Grows,” Business Review West Michigan, 8/3/11)

Employers In Detroit To Face A 7.3 Percent Increase In Health Care Costs Per Employee in 2012. “Detroit area employers can expect a 7.3 percent increase in health care plan costs per employee next year, a higher jump than last year and slightly outpacing the 7 percent average rise expected nationally, according to a report issued Monday by global human resource consultant Aon Hewitt.” (Melissa Burden, “Health Plans To Go Up 7.3% In 2012 In Metro Detroit,” The Detroit News, 9/3/11)

  • Detroit Employees To Pay Higher Premiums In 2012. “Employees in Metro Detroit, like others across the United States, also can contribute more for their health coverage in 2012. Detroit workers on average will pay a projected $2,279 in 2012 in health plan premiums, up from $2,053 in 2011.” (Melissa Burden, “Health Plans To Go Up 7.3% In 2012 In Metro Detroit,” The Detroit News, 9/3/11)

Taxes/Effect On Businesses & Jobs

ObamaCare’s Medical Devices Tax Caused Michigan-Based Medical Device Manufacturer Stryker To Cut Five Percent Of Its Workforce – Approximately 1,000 Employees. “Stryker, the Kalamazoo-based maker of artificial hips and knees, will cut 5% of its global workforce by the end of next year to reduce costs in the face of new fees on device makers required by the U.S. health care law. The job cuts will reduce annual pretax operating costs by more than $100 million beginning in 2013, when the medical-device excise tax is scheduled to take effect, Stryker said Thursday in a statement. Stryker had more than 20,000 employees as of Dec. 31, according to Bloomberg News data.” (“Stryker To Cut 5% Of Workforce,” Detroit Free Press, 11/11/11)

Detroit Small Business Owner Worried He Wouldn’t Be Able To Provide His Employees With Health Insurance Any Longer. “Sales are off by 20 percent this year at Image Computer, which repairs printers in suburban Detroit. So President Steve Olis is worried about whether he can continue paying the $71,000 a year it costs him to provide health insurance for his employees.” (David Lerman and Liz Smith, “Small Businesses Skip the Health-Care Tax Credit,” Bloomberg, 8/26/10)

  • Image Computer Doesn’t Qualify For Obama’s “Small Business” Tax Credit Because His 15 Employees Are Paid Too Well. “The Obama Administration’s answer for Olis and other small-business owners: a tax credit of as much as 35 percent of the insurance premiums they pay for employee medical coverage a signature part of the health-care reform bill signed into law in March. Image Computer, however, doesn’t qualify for the credit because Olis pays his 15 employees an average of $55,600 annually, and companies with average salaries above $50,000 aren’t eligible.” (David Lerman and Liz Smith, “Small Businesses Skip the Health-Care Tax Credit,” Bloomberg, 8/26/10)
  • “‘At Some Point I Can’t Do This Any Longer,’ Olis Says Of His Rising Health-Care Premiums.” (David Lerman and Liz Smith, “Small Businesses Skip the Health-Care Tax Credit,” Bloomberg, 8/26/10)

CEO Of MichBio In Ann Arbor, MI: “There’s A Tsunami Coming And You Probably Won’t Know What Hit You Until It’s Too Late. … The Biggest Assault On Our Industry Is The Medical Devices Tax.” (Tom Henderson, “MichBio CEO Says Tax Is An ‘Assault’ On Medical Device Companies,” Crain’s Detroit Business, 4/22/10)

  • “The Tax Is On Revenue, Not Profits, And Rapundalo Said The State’s Fledgling Medical Device Companies, Many, Or Most, Of Which Have Yet To Generate Profits, Will Be Hard Hit.” (Tom Henderson, “MichBio CEO Says Tax Is An ‘Assault’ On Medical Device Companies,” Crain’s Detroit Business, 4/22/10) 

Manager Of Grandville Tanning Salon Said She Would Shift The Packages She Offered Customers To Offset The Tax. “Electric Beach may offer an extra session in its tanning packages to offset the tax or look to sell longer-term packages before July, said Robin Elkins, manager of the Grandville store at 4763 Wilson Ave. SW. ‘I don’t think people realize that with the health-care plan there was going to be a service fee with tanning.’” (Matt Vande Bunte, “New Tanning Tax Coming In July Could Doom Business, West Michigan Salon Owners Warn,” The Grand Rapids Press, 4/27/10)

  • Elkins: “We’re In Michigan. Can People Really Afford To Pay More? It’s Going To Hurt Our Business.” (Matt Vande Bunte, “New Tanning Tax Coming In July Could Doom Business, West Michigan Salon Owners Warn,” The Grand Rapids Press, 4/27/10)

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