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September 10, 2010

Government Admits Medical Costs Will Rise Under ObamaCare

Posted by Dave Blount at September 10, 2010 7:12 AM

So now that our children and grandchildren will be paying $billions upon $billions to let Big Government seize control of the healthcare system, costs will come down for us as promised, right? On the contrary:

The health-care overhaul enacted last spring won't significantly change national health spending over the next decade compared with projections before the law was passed, according to government figures released Thursday. …
Regardless of the health law, national health spending has been rising in recent years and economists expect that to continue. In February, the federal Centers for Medicare and Medicaid Services projected that overall national health spending would increase an average of 6.1% a year over the next decade.
The center's economists recalculated the numbers in light of the health bill and now project that the increase will average 6.3% a year, according to a report in the journal Health Affairs. Total U.S. health spending will reach $4.6 trillion by 2019, accounting for nearly one of every five U.S. dollars spent, the report says.

That's what the government says. If you want the real costs, multiply by 17 or so. In 1987, the government predicted that Medicaid would cost less than $1 billion in 1992. The actual cost turned out to be $17 billion.

At least Obamanomics may cause out-of-pocket medical expenses to decline:

In the next year, spending from private health insurance is expected to grow while out-of-pocket medical costs decline because more people will stay on Cobra insurance coverage for the unemployed, the report said.

Much of ObamaCare doesn't kick in until 2014, when the Nationalizer in Chief won't have to worry about running for office again. Consequently,

U.S. health spending is projected to rise 9.2% in 2014, up from the 6.6% projected before the law took effect.

As noted previously, the cost of healthcare insurance has already started shooting upward.

Unless you are a power-drunk bureaucrat, there is no significant upside to the disaster known as ObamaCare. Our only hope is to elect a Congress that will defund the debacle.

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On tips from J and Elizabeth.