Obamacare will cost at least 200% more
In 2010 the CBO reported that Obama’s landmark and potentially unconstitutional healthcare law would be “deficit neutral.” We were told that insurance costs would go down 10 to 30%.
Now hold on this could be a shock to you. Flash-forward to 2012, no longer deficit neutral the legislation, according to a study to be released by Charles Blahous, will now add $340 billion to the deficit. (I predicted and continue to stand by this, before we arrive at 2019 this legislation should it be held in place will add more than a trillion dollars to the deficit.)
The Obama administration challenges this finding, even falsely asserting that the CBO says Obamacare will lower the deficit, something it has not said since 2010. Let’s look at the CBO’s prediction, but first you should know the CBO’s predictions are notoriously low, normally off by 3 to 11 times the actual amount.
President claims fuzzy math used by Blahous
In 2010 the CBO estimated Obama care would cost taxpayers $900 billion and would save $130 billion by shifting Medicare costs from Medicare to Obamacare. In 2012 the CBO revised its estimated cost to $1.76 trillion, nearly a 200% increase and the bills have not begun to pour in. Now the CBO is saying $575 billion in shifted Medicare costs.
So by any math new or old that would change the savings to a loss. The Blahous study is estimating that loss at $340 billion. Let’s accept the CBO numbers as stated in the Washington Post article and do the math.
$1760b – $900b = $860b (additional cost)
now subtract out the “savings” estimate of $575b:
$860b – $575b = $285 billion added to the deficit.
Where is the deficit reduction Mr. President?
And what about premiums?
Have you noticed your health insurance premiums and/or coverage? It is likely either you’ve had your benefits severely cut or your premiums have doubled like mine.
In 2010 I paid $165 per month in premiums for a family of five. This year I was informed that due to the new healthcare insurance taxes my new premium would go up to $320 per month – more than double. They wrote that I could avoid this by selecting a minimal plan that would maintain my old premium but cover about half what had been covered or I could opt out and choose to pay the penalty when it comes into effect.
Mr. President, you said I could keep my coverage, yeah but to do so I must give up lunches.
We can only pray this law is overturned. But here’s the problem for Republicans; do we simply go back to the way things were? Well, that would be great for me personally, but it wouldn’t fix the problem.
Fixing the problem means finding the root cause. It does not mean putting the government in charge. As I’ve written before the only thing government does effectively is destroy things.
I believe tort and employer-base health insurance are the root causes of high healthcare costs. If individuals had to select their plans and barriers were removed, insurance companies would be forced to compete for a huge and diverse customer base.
Currently insurance companies only have to convince a few select corporate execs to choose them. A kick-back, a well-timed and well-placed lunch meeting and bang – a million dollar policy is written. If individuals chose their own plans this could not happen.
Hey I’m in business and I was a management major in college. I know the argument about attracting top talent through great benefits. The solution here is for companies to offer insurance vouchers or reimbursements to employees.
In the long run everyone would save money and benefits would eventually increase or decrease depending on consumer demand for various insurance products. Wow, imagine letting the market fix the problem.
Unfortunately, many young Americans are socialists and don’t even know it. They can’t wrap their little leftist minds around how that would work. After all, they’ve been taught that companies are evil and government is benevolent.
Too bad that isn’t true. Human nature is flawed and selfish but market forces are composed of millions of individuals who can and do punish bad companies when exposed.
Governments are composed primarily of unelected unionized people whose greatest reward for their service is the power they wield.
Even more so, elected folks crave and abuse their power. Case in point, Nancy Pelosi. There has never been a more arrogant and ignorant usurper of personal freedom than this. Anyone who thinks G.W. Bush was dumb needs to listen to what Pelosi has said. She makes GWB sound like a rocket scientist.
People wake up and realize Obamacare sounds fair but it will curb your freedoms, reduce your choices, drain the economy, raise your taxes, further increase entitlement mentalities, and ultimately bring down the government.
Sound like fear-mongering? Then your not looking at the numbers.