ObamaCare Costs Increasing Already
[Guest post by DRJ]
Instead of saving money and providing better healthcare as President Obama and the Democrats promised, ObamaCare will cost more than it saves:
“The report from Medicare’s Office of the Actuary carried a disclaimer saying it does not represent the official position of the Obama administration. White House officials have repeatedly complained that such analyses have been too pessimistic and lowball the law’s potential to achieve savings.
The report acknowledged that some of the cost-control measures in the bill — Medicare cuts, a tax on high-cost insurance and a commission to seek ongoing Medicare savings — could help reduce the rate of cost increases beyond 2020. But it held out little hope for progress in the first decade.
“During 2010-2019, however, these effects would be outweighed by the increased costs associated with the expansions of health insurance coverage,” wrote Richard S. Foster, Medicare’s chief actuary. “Also, the longer-term viability of the Medicare … reductions is doubtful.” Foster’s office is responsible for long-range costs estimates.”
There’s more:
“The report’s most sober assessments concerned Medicare.
In addition to flagging provider cuts as potentially unsustainable, the report projected that reductions in payments to private Medicare Advantage plans would trigger an exodus from the popular alternative. Enrollment would plummet by about 50 percent. Seniors leaving the private plans would still have health insurance under traditional Medicare, but many might face higher out-of-pocket costs.
In another flashing yellow light, the report warned that a new voluntary long-term care insurance program created under the law faces “a very serious risk” of insolvency.”
According to NRO, Medicare funding cuts could put 15% of America’s hospitals out of business so it’s unlikely that Congress will follow through on those Medicare cuts, raising ObamaCare costs even more. This comes on top of recent news that over 60 doctor-owned hospitals will not be built because of ObamaCare’s regulations that prohibit physician-owned facilities except those that already exist or in rare cases.
— DRJ
What could go wrong?
We’re in the very best of hands.
AD - RtR/OS! (9562e0) — 4/23/2010 @ 1:30 pmSebelius’ testimony from this week was rather interesting, where she essentially admitted that they were just guessing at the costs of programs was rather telling. I think they budgeted $5 billion for the program she was testifying about. It will be interesting/sad to see how much that winds up costing.
JD (9f2abc) — 4/23/2010 @ 1:31 pmWell, OK. So the $540 billion that Congress needs to cut from Medicare just to make the 2011-2019 numbers work out may end up making Medicare solvent after 2020, but one would assume that precludes Congress larding the program up with any more new benefits for the rest of the program’s lifetime. In other words, Congress has to cut the half trillion plus by 2014 or 2015, then hold future Medicare spending increases to just the rate of inflation and population growth. Even if the Obama Administration had a history of being fiscally responsible, it would still mean that anyone who follows him would have to also hold the line on spending. Forgive me if I assume this is about as likely as accumulating wealth through an aggressive strategy of purchasing lottery tickets.
JVW (eebda1) — 4/23/2010 @ 1:40 pmJVW – I think everyone, especially the Dems, knew that those cuts were never going to happen.
JD (9f2abc) — 4/23/2010 @ 1:51 pmthat’s all you cretins need to know.
these are just made up rethuglican numbers so you can try and scare people away from supporting President Obama’s brilliant plan.
im wd-40 (fb8750) — 4/23/2010 @ 1:58 pmSHOCKA!!!!!
In other breaking news, scientists determine that water is wet.
daleyrocks (1d0d98) — 4/23/2010 @ 2:00 pmThe answer is simple. Go to a single-payer system, but make it “free enterprise.” Make WellPoint the big kahuna of health care.
Larry Reilly (fadcab) — 4/23/2010 @ 2:14 pmWellPoint can solve all our problems from many angles.
Take just one example: Look at how they cut expenses by huge margins in breast cancer cases. They found a cure for breast cancer’s ill effects on insurance companies.
And it’s a two-fer: We get extra benfit by lessening the pool of people sucking on the teat of Social Security.
Win-Win.
Beats the hell out of those Obamacare death panels. We don’t want government bureaucrats between us and our doctors. We want WellPoint’s enterprising adjusters in there. Free enterprise is the only way to go.
WTF is Mawy yammering about? How do Wellpoint’s practices have anything to do with the topic?
JD (9f2abc) — 4/23/2010 @ 2:15 pmI’ve chuckled at the phrase of ObamaCare, as one example, giving us all the efficiency of a DMV office and all the compassion of the IRS.
Mark (411533) — 4/23/2010 @ 2:24 pmSorry JD. I don’t expect Fox News had anything on the WellPoint story yesterday by Murray Waas via Reuters. It has everything to do with the cost of healthcare. But also it’s a “real news” thing; you wouldn’t understand.
Just keep watching Fox News.
BTW….always love your cleverness at ad hominem though. Brillllllllllllyunt.
Larry Reilly (fadcab) — 4/23/2010 @ 2:44 pmMy prior comment timed out … Mawy whining about ad hom is just precious, since all it has is rambling incoherent partisan ad hom.
Sounds like Wellpoint was being a d*ck. When the government chooses to do similar, you ain’t gonna have any recourse. I don’t watch Fox, so you prove how stupid you are. Carry on.
JD (9f2abc) — 4/23/2010 @ 2:57 pmMary is advocating the privitization of Medicare to WellPoint, and WellPoint only, establishing a monopoly?
AD - RtR/OS! (9562e0) — 4/23/2010 @ 3:00 pmWhat kind of dirty socialist trick is this?
Neither Murray Waas nor Larry Reilly are noted for the accuracy of their commentary. Wellpoint has a rebuttal of the Reuters article up on its website for all who care to look. The issue of rescissions was investigated by the NAIC last fall. Larry once again does not care about facts, he’s all about feelings.
daleyrocks (1d0d98) — 4/23/2010 @ 3:02 pmLarry is into fraud, just as the Democrats and Obama were defrauding the American people last month. Lefties celebrate fraud and celebrate lying.
SPQR (26be8b) — 4/23/2010 @ 4:14 pmOn behalf of seniors and their physicians, the AMA is urging Congress to act before a Medicare meltdown begins on December 1. Congressional action this month is the only way to stop the Medicare cut. Congress needs to keep Medicare strong for our senior patients and ensure that baby boomers will have access to physicians when they begin receiving their Medicare cards for the first time this January.
Bill Van Emburg (1310a0) — 11/19/2010 @ 11:21 am