Wasn’t ObamaCare Supposed To Cut Costs?
Well, surprise, surprise (as Gomer Pyle used to say), it won’t:
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.
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.
Now, a 0.1% difference may not seem like much, but when you’re talking about a total of $2.6 trillion in medical spending in 2010, you can see it’s a lot in absolute dollars.
But the bigger point is, we were told that this bill would reduce costs, and it’s not… just like most things Washington tries that just plain don’t work. That’s why conservatives prefer that government stay as small as possible.