Costs for ObamaCare Skyrocket

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A funny thing has happened on the way to the implementation of Obamacare, aka the Patient Protection and Affordable Care Act (ACA): it’s become much less affordable. When the law was passed in 2010, the Congressional Budget Office (CBO) estimated it would cost $940 billion over a ten year period. The new estimate? $1.76 trillion.

But it gets even better. A year ago, the CBO estimated that one million workers would no longer get insurance coverage from their employers when the healthcare law was fully implemented. That estimate has now been revised as well. By 2016, the CBO now projects that 4 million fewer people will be getting their healthcare covered by their employer. Furthermore, the overall number of currently uninsured people who would be covered by the new law has been reduced from 32 million to 30 million. And, in an ironic twist, because the law provides many people with partial, rather than comprehensive coverage, the number of non-elderly legal residents forced to obtain supplemental insurance policies will rise from 82 percent in 2012, to 93 percent in 2022.

None of this surprises those who warned that the original cost estimates of the healthcare bill were little more than Enron-like accounting gimmicks. The most egregious of those gimmicks was to delay the full implementation of the law until 2014, while using a combination of tax increases and Medicare cuts beginning with the law’s passage in 2010 to fund it. Since CBO projections are based on ten-year estimates, the original $940 billion price tag reflected ten years of payments for only six years of coverage.

The CBOs new projections cover the years 2013 extending through 2022, when the true cost of the plan can no longer be obscured. And this number only reflects nine years of projections. Americans must wait until next year to get a true ten-year cost estimate, assuming the law survives the Supreme Court or repeal by Republicans should they attain a congressional majority and the White House. Since the cost projection in 2022 currently stands at $265 billion, one can assume that the cost of the plan in 2023 will be at least that high. Add $265 billion to $1.76 trillion and the real cost of the healthcare plan nears $2 trillion over the course of a decade.

Furthermore, these are only big-picture projections. The CBO also projected an increase of $168 billion in Medicaid compared to its projection a year ago, coupled with $97 billion less spent on subsidies for people to purchase insurance on government-run exchanges, and $20 billion less on tax credits to small employers. This represents an overall increase of $51 billion over last year’s CBO estimates. Yet the CBO is still projecting the plan will cost $48 billion less from 2012 to 2021.

Why? Because government expects to collect the $99 billion necessary to reach those savings via a one-two combination of fines and tax hikes. The fines will be imposed on both people who refuse to abide by the individual mandate forcing them to buy coverage, and the aforementioned employers who will drop coverage for their employees. The tax hikes will be imposed on all Americans who pay taxes.

The CBO report also reveals why they felt the adjustments were necessary. Chief among them were a “macroeconomic forecast published in January 2012, which reflects a slower recovery when compared with the forecast published in January 2011,” and  “updated projections of the growth in private health insurance premiums, reflecting slower growth than the previous projections.” The former estimate reflects the reality that the Obama administration’s  Keynesian-inspired economic plan that has consisted of running up more debt more quickly than any administration in our nation’s history is largely a bust.

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  • Marianne_Lee

    Many people would like to know the truth about this. But whatever the truth is, it is still essential that honesty in prioritized. Baby Eagle

  • StephenD

    He foists such a debacle upon us and yet is still virtually even in every poll and may actually get re-elected. I just don't understand the American Electorate. How stupid can we get?!?

    • guest

      Its not how many votes you get, but who counts the votes –Joseph Stalin

      • Cuban Refugee

        "Say one thing, and do another." — Saul Alinsky

        • Chassity

          Shut Up

      • http://www.youtube.com/watch?v=QpgiYe6LToc Roger

        They are consistent.
        http://www.youtube.com/watch?v=9A5dsrHBfyc

        Remember the voting that kept Reid in office? The reports of glitches that the press kept ignoring?

    • Rifleman

      I take polls with a block of salt, they depend on wording, sample, and methodology, and the msm uses them to alter perception and generate momentum.

    • jenifer

      Why? Because government expects to collect the $99 billion necessary to reach those savings via a one-two combination of fines and tax hikes. The fines will be imposed on both people who refuse to abide by the individual mandate forcing them to buy coverage, and the aforementioned employers who will drop coverage for their employees. The tax hikes will be imposed on all Americans who pay taxes.
      good to see such an informative stuff… thanks for posting..
      8 inch tablet

  • davarino

    We must demand that all our mini kings and queens abide by the same laws and decrees foisted on us. Every man woman and child of America must live by the same rules or those rules apply to no one. There is no such thing as exemptions. If you have to allow exemptions from a law then that alone shows the law is flawed, inappropriate, unenforcable, not lawful. This is the most corrupt administration in American history. Relax Mr. Carter, your off the hook. You dont even come close to this bunch of crooks, you were just inept, these guys are criminal.

    • http://www.youtube.com/watch?v=QpgiYe6LToc Roger

      As if they would allow us to say such things….
      (sarcasm)

  • StephenD

    Like the old saying about education; If you think it's expensive now…wait until it's free!

  • Rifleman

    Dp plausible deniability is only plausible if one discounts the video of barney frank saying their law would result in a single payer system, or all the dp politicians and other leftists saying a single payer government-run health care system was their objective, and it would require a transition phase to bring it about.

  • Tanstaafl

    Remember when Miss Nancy said we're going to have to pass Obamacare to "see how good it is"?

  • maria

    Davarino is absolutely right. How could it be that in democratic state the law is not applied to all citizens? Why Goverment and Congress were exempted from "Obamacare"? Then Unions were exempted from the same law. It is obvious corruption. Obama goverment alike dictators regime. He is not a President but more rule as a King. As the first lady said "We are lucky that Media is on our side". B Hussein promissed change and he did it. He destroyed and transformed our country. I came accross at some muslims cite where some of them commented"Thank you Obama for making a good job for us". If he will be reelected, we are done.

  • jojo

    Ummm, the CBO estimate actually says that – when you figure in the new revenue (things like penalties paid) – the health care act actually reduces the deficit. The above figures refer only to the amount of money the government has to outlay, not the revenues it will accrue.

    maybe the law is ultimately bad (though i don't think so), but this article is very dishonest

    • reader

      "Ummm, the CBO estimate actually says that – when you figure in the new revenue (things like penalties paid) – the health care act actually reduces the deficit."

      We've already heard that and Pelosi's line about needing to pass the bill before finding out what's in it. It may be news to jojo, but the majority of the public was against this atrocious legislation when it was shoved down our throat, and even bigger majority is against it now.

  • George Lasker

    //This report also presents estimates through fiscal year 2022, because the baseline projection period now extends through that additional year. The ACA’s provisions related to insurance coverage are now projected to have a net cost of $1,252 billion over the 2012-2022 period; that amount represents a gross cost to the federal government of $1,762 billion, offset in part by $510 billion in receipts and other budgetary effects (primarily revenues from penalties and other sources).//

    In any event, we are still out upward of $1,000,000,000,000 dollars. How anybody can believe that adding a trillion dollars to the deficit is going to decrease the deficit is beyond comprehension. Moreover, we would have to believe that the revenues collected would actually be used to offset the costs, rather than being wasted on profligate spending and dubious foreign wars.

    If they were just honest and said "Yes, this is a heavy investment with a lot of undetermined factors in play, but we should make this investment anyway", perhaps there would have been a sensible political debate on the merits. Instead, Democrats relied on fudging the numbers, misrepresenting the economic incentives, and pretending that the deficit was going to lowered by adding a trillion dollars of debt.

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  • kentatwater

    And here we have this morning's fourth example of "justquitnow's" hero worship of the 0ne. Working your way down in reverse-chronological order, are we?

  • kentatwater

    So, the fact that your sequential choices of reports to pollute all deal with the Anointed One or his family is merely a coincidence?

    Please.

  • kentatwater

    Your responses, filled with left wing talking points and invective, give lie to your claims on research (which no doubt consists of referring to various advocacy sites and the likes of media mutters) and reason (the lack of which is illustrated by your misuse of the word "trolling.")

    But by all means, keep with the Hussein fan club postings. They're funny!

    Last post in response to one of mine? Really? We'll see.

  • kentatwater

    Last post in response to one of mine? Really? We'll see.

    http://frontpagemag.com/2012/03/16/the-problem-wi

    Well, that didn't take long at all. One day.

    Somebody's goat has been gotten.