Cost for ObamaCare Soar
When the [Affordable Care Act] passed in June 2010, the Congressional Budget Office projected the budget cost between fiscal 2012 and fiscal 2019 to be $462 billion. By June 2012, the cost for these same years had jumped to $574 billion, an increase of nearly 25 percent.
Entire report from the American Action Network.
Wow
Anyone surpirsed at this?
could this increase be the result of SCOTUS striking down the provision that forced states to expand medicare. seems to be the only difference in the law after the court’s decision
Hmm .. I wonder how the baseline was calculated?
This is not very surprising. Honestly, I could have seen it going being higher.
I agree, Jimmy…I believe as more time passes we will see those numbers climb.
How did that happen?
Looks like a couple congressmen just bought themselves a nice vacation…
Cost will go ballistic! That’s something that proponents don’t want to admit — even if those who understand it. Most supporters believe that if everyone has health coverage, medical expenditure growth will magically slow as though health-promoting pixie dust was sprinkled on the populous by angels from on high.
Surprise! the CBO underestimated the cost of a program. That has never happened before!
John:
Thanks a lot for providing this article.
Subsidies in the exchanges has been on my mind lately, as we are finished with our discussions with Milliman, and start working on a presentation to a potentially interested life insurer.
While our product can offer similar coverage as traditional plans, at 60-80% discounts over 3-5 years, the initial cost will be similar to that of traditional insurers.
In order to properly compete, initially, we would need subsidies as well.
Over time, the subsidies would be substantially lower for the low or no claims-filers, which should please the federal government.
As our product is not PPACA compliant, primarily because we encourage people not to make claims (and thus do not meet the 80% Medical Loss Ratio), we will need a waiver from the PPACA. I have asked Douglas Holtz-Eakin, the author of this article, if he has experience obtaining waivers or know of someone who does.
Thanks again for this timely article.
Don Levit
I’ve been looking at government figures for entirely too long, when a 15 billion dollar increase doesn’t sound all that bad.
As usual, their projections never…and I mean NEVER…match the actual outcomes. Not the first time, and definitely not the last one either.
Well let’s see now … two years of unemployment, no heatlh insurance, no money to buy my prescriptions, daily pain and sickness, no husband’s income to fall back on. You call that freedom?