For Immediate Release
Contact: Carl Graham
Montana Policy Institute
406-219-0508
cgraham@montanapolicy.org

Cost of Proposed Health Care Legislation Examined

Montanans can expect an added $4,227 financial burden per person

BOZEMAN (08.12.09) - Proposed federal health care reform built on President Barack Obama's core principles would impose an additional financial burden of $4,227 on every man, woman, and child in Montana over the next decade, according to a report released today by the Montana Policy Institute.

"This report clears away the rhetoric and gives people a clear look at what health care will cost them if proposed legislation is passed," said MPI President Carl Graham.

The report, The Prognosis for National Health Insurance: A Montana Perspective, was produced by Arduin, Laffer & Moore Econometrics, the research firm of internationally renowned economist Dr. Arthur Laffer. It models the general concepts included in the health care reform proposals by President Obama and the congressional leadership.

The report concluded that the expansion of the government's role in the health care market would:

• Increase national health care expenditures by an additional 8.9 percent by 2019;
• Increase medical price inflation by 5.2 percent above what it would have been otherwise by 2019;
• Increase total federal expenditures by 5.6 percent over the next decade, creating an additional $285.6 billion deficit in 2019 assuming the extra expenditures are not financed by a tax increase; and
• Reduce U.S. economic growth in 2019 by 4.9 percent - and Montana's growth by 4.2 percent - when compared to the baseline scenario.

When combining the increased federal and state government health care spending with the escalation in health care costs, the current net present value of funding health care reform based on President Obama's priorities will be $4,227 paid by every person in Montana.

"The health care reform based on President Obama's priorities worsens the current inefficiencies in the health care system because it incorrectly diagnoses the problems with our health care system," said Dr. Arthur Laffer, one of the report's authors. "If implemented, the President's reforms will significantly harm the health care system, patient welfare, and the economy overall."

The Montana Policy Institute calls on the Montana congressional delegation to end its pursuit of a government takeover of America's health care system, and instead to consider patient-centered alternatives that have been proven to increase quality and access to care while reducing health care costs.

Dr. Arthur Laffer is a partner with Arduin, Laffer & Moore Econometrics, which provides economic, fiscal, and policy advice to governors, legislatures, think tanks, and corporate clients throughout the country. He was a key economic advisor to former President Ronald Reagan, and his Laffer Curve was hailed by Time Magazine in March 1999 as one "of the advances that powered this extraordinary century."

View full report here.

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The Montana Policy Institute is an independent, nonpartisan policy research center based in Bozeman. It provides analysis and information to encourage individual freedom, personal responsiblity, and free markets in Montana.

Montana Policy Institute
67 W Kagy Blvd, Ste. B
Bozeman, MT 59715
406-219-0508
info@montanapolicy.org
www.montanapolicy.org

MPI is a Montana tax exempt corporation operated exclusively for the public benefit. No substantial part of the activities of the Institute are used for the carrying on of propaganda or otherwise attempting to influence legislation, promote any political campaign, or on behalf of or in opposition to any candidate for public office.