Free Markets, Free People


Study says health care costs projected to rise more under ObamaCare

Promises, promises, promises.  President Obama promised the passage of the Affordable Care Act would lower health care costs across the board, making health care “more affordable”.   The entire premise of the massive government intrusion in that market was to lower costs and make insurance more affordable.

A new study says that doing nothing would actually have been slightly less expensive.  The irony is this isn’t some opposition think tank which has put up these numbers but the Centers for Medicare and Medicaid Services:

Despite President Obama’s promises to rein in health care costs as part of his reform bill, health spending nationwide is expected to rise more than if the sweeping legislation had never become law.

Total spending is projected to grow annually by 5.8 percent under Mr. Obama’s Affordable Care Act, according to a 10-year forecast by the Centers for Medicare and Medicaid Services released Thursday. Without the ACA, spending would grow at a slightly slower rate of 5.7 percent annually.

The primary reason, supporters say, is more people will have insurance. 

CMS officials attributed the growth to an expansion of the insured population. Under the plan, an estimated 23 million Americans are expected to obtain insurance in 2014, largely through state-based exchanges and expanded Medicaid eligibility.

The federal government is projected to spend 20 percent more on Medicaid, while spending on private health insurance is expected to rise by 9.4 percent.

Anyone – do you know why “private health insurance costs” are expected to rise by 9.4%?   Because the privately insured will be tapped to help pay the difference between what an expanded Medicaid base pays and what doctors charge.  Or, in other words, they will be the victim of government intrusion and market distortion.  And of course government is then going to point to the costs its distortion caused and claim it should help solve the problem it has created.  And what will be eventual answer to those increased costs caused by government distortion be?   Single-payer, of course.

This study doesn’t address the other real problem – you may expand Medicaid dramatically, but having that insurance doesn’t guarantee seeing a doctor.  Other studies have shown that increasing the insurance base doesn’t decrease emergency room use, but instead increases it in the face of a building doctor shortage.   And then, of course, there are those doctors who simply won’t take Medicaid (or any more than they now have) because of the low reimbursement rate.

So when the White House’s Nancy-Ann DeParle says:

“The Affordable Care Act creates changes to the health care system that typically don’t show up on an accounting table,” she said. “We know these new provisions will save money for the health care system, even if today’s report doesn’t credit these strategies with reducing costs.”

She’s also leaving out that part of the problem that doesn’t “show up on an accounting table” as well.

Bottom line, we were sold a lemon, a bill of goods, snake oil.  All the ACA does is give the government a legal ability to intrude deeper and deeper in a market it really has no business being in at all and to distort that market even further.  And that’s precisely what is going to happen.  We all know that when government gets in as deep as it will be in this market, nothing ends up “costing less”.

~McQ

Twitter: @McQandO

  • Facebook
  • Twitter
  • LinkedIn
  • Tumblr
  • Digg
  • Reddit
  • email
  • Print
  • Google Bookmarks

10 Responses to Study says health care costs projected to rise more under ObamaCare

  • Bottom line, we were sold a lemon, a bill of goods, snake oil.  All the ACA does is give the government a legal ability to intrude deeper and deeper in a market it really has no business being in at all and to distort that market even further.
    And we all know what that gets us.  Well, those of us with a working brain.
    This is a link to a very unlikely book review, for a book all should read.

  • You know, there’s a pattern with this guy.

    It turns out that the unemployment rate WITH the stimulus is much higher than what were told the rate would be WITHOUT the stimulus.

    It turns out that health care costs WITH ObamaCare will be higher than what we were told would be the case WITHOUT ObamaCare.

    Pretty much anything this guy touches turns into a turd. If he favors a particular sports team, that team is likely going down in flames; if he favors a particular war (ahem, Lybia), you know it’s going to turn into a never-ending morass. In short, Obama is the kind of messenger where if he tells you that you’re looking “fit and healthy”, you should RUN to the doctor to have yourself checked out. He is the anti-Midas.

    Of course, ObamaCare is a done deal. There will be no repeal of it until the country comes tumbling down. Gad, I hate the Republicans. [Except for the 25 or so freshmen who seem to have grown a pair last night on the run-up to the Boehner debt bill vote.]

  • ” [Except for the 25 or so freshmen who seem to have grown a pair last night on the run-up to the Boehner debt bill vote.]

    These are the people who remember WHY they are there – as opposed to most of the rest of these feckless morons – I’m not sure why they think they are there, various reasons I suppose, but it sure as hell is NOT to faithfully represent the people who elected them.

  • President Obama Is No Longer Tethered To Reality
    President Barack Obama’s speech to the nation Monday night was highly disturbing. Because read carefully, it reveals a president wildly divorced from the fundamental realities of the nation he is supposed to be leading.

    Who knew ?

    • Well, and he just LIED all over the place.
      Cf, the one about private jet owners and oil getting tax breaks no other businesses get.
      Blatant, bald-faced lies.
      This could signal The Great Unraveling I have worried about since the beginning.

michael kors outlet michael kors handbags outlet michael kors factory outlet