The release of a report by the Centers for Medicare and Medicaid Services (CMS) detailing national health care expenditures confirms that nearly three years since ObamaCare became the law of the land, President Obama’s often-repeated promise to reduce the cost of health care remains unfulfilled. Perhaps what is most disturbing, is that the lesser-read analysis accompanying the annual report details what many hope will go unnoticed, but that America cannot afford to ignore. Namely, the report reveals that future health care spending will increase significantly more than if the law had never been passed and enacted in the first place.
“We agree on reforms that will finally reduce the costs of health care. Families will save on their premiums; businesses that will see their costs rise if we do nothing will save money now and in the future… You talk to every health care economist out there and they will tell you that whatever ideas are -- whatever ideas exist in terms of bending the cost curve and starting to reduce costs for families, businesses, and government, those elements are in this bill.” - President Obama, December 15, 2009
The Obama Administration’s own actuaries reaffirmed what so many other reports have already shown – the Democrats’ health care law has failed to make health care more affordable. In the future, the law will actually make matters even worse. Specifically, the report predicts that:
ObamaCare will increase health care costs and spending:
Once the ObamaCare Exchanges and Medicaid expansion take effect in 2014, private health insurance premium growth will increase 108 percent faster than what would have occurred prior to ObamaCare. From 2015-2021, growth in private health insurance premiums will increase 5.9 percent annually; and
In 2014, “national health spending is projected to rise to 7.4 percent,” 39.6 percent faster than what would have occurred without ObamaCare.
From 2015 to 2021, “health spending is projected to grow at an average rate of 6.2 percent annually.”
Under ObamaCare workers lose the health insurance they have and like:
Obama Administration officials have “an expectation that some large employers of low-wage workers will discontinue coverage.”
Since ObamaCare became law, the report found that costs are increasing for individuals and families:
National health expenditures increased by $100 billion;
The rate of growth in out-of-pocket health care costs for American’s increased 33 percent;
The annual Medicare spending growth rate increased 44 percent and will continue to increase, highlighting the need for real Medicare reform; and
Despite the fact that the use of generics continues to increase and their prices continue to fall, due to President Obama and Senate Democrats’ “backroom deal” with big brand name pharmaceutical companies, prescription drug spending growth has skyrocketed. Since ObamaCare became law, the rate of prescription drug spending has increased 225 percent.
As though the increased costs weren’t enough, the report exposes a harsh reality - had it not been for a sluggish economy, things would be even worse. The actuaries stated that, “Nonetheless, economic, income, and job growth in 2011 was modest and less than what normally might be expected during an economic recovery.” It is clear from this report that ObamaCare must be repealed and replaced with reforms that actually reduce the cost of health insurance for all Americans.