American Elephants

Actuaries Are Responsible For Long Run Cost Estimates. by The Elephant's Child
April 23, 2010, 9:53 pm
Filed under: Health Care, Law, Taxes | Tags: , ,

You need to sit down.  There is news, and you may find it shocking.

ObamaCare will cost more than they claimed.

A new report by the actuaries from the Centers for Medicare and Medicaid Services at Health & Human Services concludes that rather than cutting costs, the Affordable Care Act will increase medical spending by at least one percent over ten years — a figure that could get bigger — because the government  is unlikely to follow through on the proposed Medicare cuts that would push 15 percent of hospitals into the red, and result in service cuts for seniors.

Bet you never expected that, did you?

Some of the cost control measures in the bill, could help reduce the rate of cost increases, but “during 2010 – 2019, these effects would be outweighed by the increased costs associated with the expansions of health insurance coverage.  Also the longer-term viability of the Medicare ..reductions is doubtful.”

The report also notes that cuts in Medicare Advantage will drive as many as half of seniors out of their plans and into more traditional, and more insolvent, Medicare plans while boosting their out-of-pocket costs.  And a new long-term care insurance program buried in the bill — whose premiums were among those items wrongly double-counted as deficit-reducing, faces a “very serious risk” of insolvency.

HHS Secretary Sebelius said:  “The Affordable Care Act will improve the health care system for all Americans, and we will continue our work to quickly and carefully implement the new law.”

So there you go.  File this under media report.

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