FixHealthCarePolicy

Side Effects: It’s Official — Higher Health Care Costs

Yesterday, the actuaries at the Centers for Medicare and Medicaid Services (CMS), the agency that runs the giant entitlement programs, released their analysis of the new health care law. The AP reports that “White House officials have repeatedly complained that such analyses have been too pessimistic and lowball the law’s potential to achieve savings,” but the official CMS analysis reinforces several of Heritage’s predictions regarding Obamacare.

Some highlights of the CMS report:

– Mandates Without Impact. Writes CMS, “For many individuals, the penalty amounts for not having insurance coverage were not sufficiently large to have a sizable impact on the coverage decision” (p.7). Concerning employers, “the penalties would not be a substantial deterrent to dropping or forgoing coverage” (p.7). So these provisions will do little to achieve their purpose, i.e., to encourage individuals to carry coverage and employers to offer it. (more…)

Tags: bend cost curve up, CLASS program, higher health care costs, Individual Mandate, Medicare cuts, Seniors, Side Effects

The Aftermath of Obamacare: What America Will Look Like If The White House Gets Its Way

America stands on the precipice of sweeping liberal health care reform that will radically reshape one-sixth of the U.S. economy, and a 153-page House bill is all that stands between us and a fundamentally changed America.

What will that change look like? Speaker Nancy Pelosi (D-CA) said, “we have to pass the bill so that you can find out what is in it,” and President Barack Obama said, “By the time the vote has taken place, not only will I know what’s in it, you’ll know what’s in it.”

In other words, here’s a ticket to ride, get on board, we can’t tell you where it’s going, but you’ll like it once you get there. We promise.

A picture of America’s future under Obamacare can be revealed, though, after peeling away the pages and digging through the dirt. Here’s 10 things you can expect:

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Tags: higher health care costs, House reconciliation bill, investment income tax, job killer, more taxes, Senate Health Bill, taxpayer-funded abortions, unconstitutional mandates

Reid Health Bill Raises Premiums

Today, the Congressional Budget Office (CBO) released a new report detailing why individuals who purchase insurance in the non-group market would see much higher premiums in 2016 under Obamacare, than they would under current law. On average, those in large-group employer-sponsored plans would see their premiums remain flat. But this is an average of two subgroups that hides major losses by millions of Americans: 1) employees with generous coverage would see benefits cut due to the tax on high-value plans, and 2) employees with pared-down plans would see their premiums increase due to increased coverage mandates and taxes on medical devices and insurers that would be passed on to employees.

CBO assumes that large group plans will shift some of their older, sicker workers to the non-group market. Approximately one-fifth of the non-group market will consist of workers who formerly had insurance through their employer. This “crowding out” occurs as government subsidized plans displace private insurance. By shifting these high-cost workers to the non-group market, group plans can offset the higher taxes under Senator Reid’s plan and thus keep premiums flat for insurance purchasers. (more…)

Tags: Congressional Budget Office, higher health care costs, higher insurance premiums, individual mandates, Obama Health Care Plan, trillion dollar deficits