Latest Obamacare Forecast: Higher Costs

New CMS Report Offers Latest Proof The President’s Promises On Costs Not Adding Up For Most Americans

PROMISE: “…it will slow the growth of health care costs for our families, our businesses, and our government.” (President Obama, 9/9/09)

REALITY: “The combined effects of the Affordable Care Act’s coverage expansions, faster economic growth, and population aging are expected to fuel health spending growth this year and thereafter (5.6 percent in 2014 and 6.0 percent per year for 2015–23).” (Office of the Chief Actuary for the Centers for Medicare and Medicaid Services, “National Health Expenditure Projections, 2013-23”, Health Affairs, October 2014)

 

Costs Rising For Families

“One challenge facing consumers will be wide swings in prices. Some insurers are seeking double-digit price increases…” (“Experts Bracing For New Set Of Challenges In Year 2 Of Health Care Law,” The New York Times, 9/2/14)

“Rates will be a mixed bag… the average premium increase would be 8%, according to PwC's Health Research Institute. But the individual moves ranged from proposed 23% cuts for two plans to increases of more than 30% for a few other plans.” (“With Health-Law Marketplaces Reopening, Insurers Brace For Round Two,” The Wall Street Journal, 9/3/14)

                                                                                                                                     

Costs Rising For Employers

“Many businesses said Obamacare is jacking up their employee health coverage costs, and they expect it to do so even more next year, two new surveys of businesses by the Federal Reserve Bank of New York have found.” (“NY Fed: Firms 'Widely' See Obamacare Boosting Health Costs,” CNBC, 8/18/14)

AMERICAN HEALTH POLICY INSTITUTE: “…the ACA imposes additional costs of $4,800 to $5,900 per employee over the course of a decade.” (American Health Policy Institute, “The Health Care Employment Squeeze: Labor Day 2014,” p. 3)

INTERNATIONAL FOUNDATION OF EMPLOYEE BENEFIT PLANS: “…nearly one in six employers with 50 or fewer employees has reduced its workforce in response to ACA-related costs … one in ten has reduced hiring in order to stay under the 50-employee ACA threshold for small employers.” (American Health Policy Institute, “The Health Care Employment Squeeze: Labor Day 2014,” p. 4)

FEDERAL RESERVE BANK OF PHILADELPHIA: “…18.2 percent of manufacturing employers have reduced both jobs and employees as a result of the ACA, while just 3 percent were hiring more.” (American Health Policy Institute, “The Health Care Employment Squeeze: Labor Day 2014,” p. 4)

 

Costs Rising For Government

CBO: “Federal spending for the major health care programs will jump by $67 billion (or about 9 percent) in 2014, CBO estimates.” (CBO, p. 10, August 2014)

CMS, OFFICE OF THE ACTUARY: “By 2023 federal, state, and local government financing is projected to account for 48 percent of national health expenditures, up from 44 percent in 2012, and to reach a total of $2.5 trillion.” (Office of the Chief Actuary for the Centers for Medicare and Medicaid Services, “National Health Expenditure Projections, 2013-23”, Health Affairs, October 2014)

 

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