GOP says Democrats’ plan to overhaul health care will increase costs for the average American

Republicans say Dems health care plans too costly

WASHINGTON — With landmark health care votes expected in the coming weeks, Republicans are warning voters that the Democratic plan to expand coverage to millions who lack it will increase costs for the average American.

In the GOP’s radio and Internet address Saturday, Nebraska Sen. Mike Johanns said the health care legislation would mean higher monthly premiums and taxes, as well as cuts to Medicare for older people.

“There’s no doubt about it,” said Johanns.

Democrats have denied these claims, contending that health care costs are already spiraling out of control and will only continue to rise if Congress doesn’t act. They say their plan would ultimately lower prices because it would rein in wasteful spending. They cite, for example, the high costs of hospitals treating uninsured patients in the emergency room that gets passed on to other patients.

As Democrats continue to struggle with the details, including how to pay for it, party leaders in the House and Senate are aiming to vote next month on legislation.

In general, the legislation would remake the nation’s $2.5 trillion health care system with a new requirement for most Americans to purchase health insurance, and government subsidies to help lower-income people do so. Insurers would face new restrictions against dropping coverage for sick people or denying coverage to people with pre-existing health conditions.

But Johanns, a former agriculture secretary in the Bush administration, said the plan would hurt a cross-section of people struggling in the economic downturn. Factory workers would be hit with higher premiums, while college graduates saddled with student loans would be forced to pay for health care they might not be able to afford, he said.

Johanns also claimed that the Democratic plan would eliminate entirely the ability for families to pay for medical expenses using tax-free dollars through flexible spending accounts.

The Senate bill under consideration would allow for flexible spending accounts, but cap them at $2,500 annually. Currently, there is no federal limit, although employers typically impose their own caps.

As for the proposed cuts to Medicare providers, Democrats say their plans would not affect core Medicare benefits and would strengthen the program overall by reducing fraud and abuse.

Johanns said Democrats’ plans would end flexible spending accounts as they are currently offered and result in increased out-of-pocket costs.

Legislation in the Senate would cap at $2,500 annually the amount people are allowed to deduct from their salaries for deposit in these tax-free accounts. Currently, there is no federal cap, although employers typically impose their own caps. The proposed change raises money to help pay for Democratic health care legislation because it exposes more income to taxation.

Associated Press writer Erica Werner contributed to this report.

On the Net:

Weekly Republican address: www.youtube.com/user/gopweeklyaddress