Fix Health Care Policy

Not all surprises are good. When it comes to Obamacare, the original projections are turning into unfortunately different realities. For the next two days, Heritage is going to highlight one of the various changes in Obamacare projections (e.g., cost, enrollment, etc.) from when the law first passed until now.

Obamacare was passed into law under the guise that it would expand access to health coverage while simultaneously reducing the federal deficit.

In 2010, the Congressional Budget Office (CBO) estimated that Obamacare would result in deficit reduction totaling $143 billion from 2010–2019.

In 2012, the CBO estimated that Obamacare would result in deficit reduction totaling only $109 billion from 2013–2022, $34 billion less than in 2010. Among other updates, this is due to the rising costs of subsidies in the exchanges.

Surprise: The CBO lowered its deficit reduction projection by 24 percent, revealing that Obamacare will cost the American public far more than anticipated. Turns out, the best things don’t come in big, Obamacare-sized packages.

12 Days of Obamacare Surprises:

10. Unelected bureaucrats on IPAB…

9. Increased employer penalties…

8. More cuts to Medicare…

7. Loss of employer-sponsored insurance…

6. A 50/50 split on enrollment estimates…

5. More uninsured Americans…

4. Increased exchange subsidies…

3. Big tax increases…

2. The small business tax credit…

1. And the individual mandate.

Tags: "deficit reduction", CBO, Medicaid Expansion, Obamacare surprise, rising costs, subsidies

Yesterday, Representative Paul Ryan (R–WI) shared his outlook for repealing and replacing Obamacare.

Ryan pointed out that rising health care costs not only make insurance unaffordable for many Americans; they are also a main driver of growing federal deficits. As medical inflation pushes the cost of insurance and medical goods and services sky high, the cost to taxpayers of Medicare, Medicaid, and the new open-ended entitlements created in Obamacare goes up as well.

Adequately addressing rising costs will require pinpointing the root causes of medical inflation. Ryan defined these as over-utilization, under-payments, and inefficiency stemming from the detachment of consumers from the costs of their health decisions in a third-party system. The irony, as Ryan put it, is that “the system that shields us from the cost of services has actually left us paying more.”  (Read the rest on The Foundry…)

Tags: consumer-driven care, health reform, Rep. Paul Ryan, repeal Obamacare, replace, rising costs

By now, most Americans who have been following the effects of the Patient Protection and Affordable Care Act (PPACA) realize that the health care overhaul is going to cause health insurance premiums to increase. Even President Barack Obama admitted that his health care plan was “going to increase our costs—we knew that.”

However, the number of provisions in Obamacare that will increase premiums is likely far larger than most people realize. In recent research, Heritage analysts Brian Blase and Rea Hederman, Jr., highlight a dozen ways in which Obamacare will raise premiums. Three of the reasons they cover are listed below. To read about all twelve, check out this link. (more…)

Tags: adverse selection, insurance premiums, mandated benefits, rising costs, Side Effects