Friday, March 25, 2016

Obamacare Was Supposed to Lower Health Care Costs, But Has It?

Has Obamacare Reduced Costs?
Those family cost savings, of course, have not materialized.
In year six, even with lower than anticipated enrollment in the health insurance exchanges and the refusal of 21 states to participate in the law’s Medicaid expansion, the health care cost curve is still on an upwardly mobile trajectory.
It is fueled by sharp increases in both public and private health care spending.
Centers for Medicare and Medicaid Services data show that total per capitahealth insurance spending will rise from $7,786 in 2016 to $11,681 in 2024. Looking at the future of employer-based health insurance costs, the Congressional Budget Office (CBO) projects that job-based premiums are poised to increase by almost 60 percent between now and 2025.
Obamacare’s cheerleaders have allowed their exuberance to outrun their supply lines. Medicare trustee Charles Blahous best summarized the problem:
“Given how the ACA’s advocates touted the law as ‘bending the cost curve down and reducing the deficit’ while occasionally in the same sentence crediting it with expanding coverage to ‘more than 94 percent of Americans’, many Americans could be forgiven for not understanding that those two goals were in conflict.”
Obamacare cannot deliver the impossible (even if it were good public policy­— and it isn’t).

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