Posted on 04/23/2010 3:50:20 AM PDT by Man50D
President Barack Obama's health care overhaul law is getting a mixed verdict in the first comprehensive look by neutral experts: More Americans will be covered, but costs are also going up.
Economic experts at the Health and Human Services Department concluded in a report issued Thursday that the health care remake will achieve Obama's aim of expanding health insurance -- adding 34 million to the coverage rolls.
But the analysis also found that the law falls short of the president's twin goal of controlling runaway costs, raising projected spending by about 1 percent over 10 years. That increase could get bigger, since Medicare cuts in the law may be unrealistic and unsustainable, the report warned.
It's a worrisome assessment for Democrats.
In particular, concerns about Medicare could become a major political liability in the midterm elections. The report projected that Medicare cuts could drive about 15 percent of hospitals and other institutional providers into the red, "possibly jeopardizing access" to care for seniors.
The report from Medicare's Office of the Actuary carried a disclaimer saying it does not represent the official position of the Obama administration. White House officials have repeatedly complained that such analyses have been too pessimistic and lowball the law's potential to achieve savings.
The report acknowledged that some of the cost-control measures in the bill -- Medicare cuts, a tax on high-cost insurance and a commission to seek ongoing Medicare savings -- could help reduce the rate of cost increases beyond 2020. But it held out little hope for progress in the first decade.
"During 2010-2019, however, these effects would be outweighed by the increased costs associated with the expansions of health insurance coverage," wrote Richard S. Foster, Medicare's chief actuary. "Also, the longer-term viability of the Medicare ... reductions is doubtful." Foster's office is responsible for long-range costs estimates.
Republicans said the findings validate their concerns about Obama's 10-year, nearly $1 trillion plan to remake the nation's health care system.
"A trillion dollars gets spent, and it's no surprise -- health care costs are going to go up," said Rep. Dave Camp, R-Mich., a leading Republican on health care issues. Camp added that he's concerned the Medicare cuts will undermine care for seniors.
In a statement, HHS Secretary Kathleen Sebelius sought to highlight some positive findings for seniors. For example, the report concluded that Medicare monthly premiums would be lower than otherwise expected, due to the spending reductions.
"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," the statement said.
Passed by a divided Congress after a year of bitter partisan debate, the law would create new health insurance markets for individuals and small businesses. Starting in 2014, most Americans would be required to carry health insurance except in cases of financial hardship. Tax credits would help many middle-class households pay their premiums, while Medicaid would pick up more low-income people. Insurers would be required to accept all applicants, regardless of their health.
The U.S. spends $2.5 trillion a year on health care, far more per person than any other developed nation, and for results that aren't clearly better when compared to more frugal countries. At the outset of the health care debate last year, Obama held out the hope that by bending the cost curve down, the U.S. could cover all its citizens for about what the nation would spend absent any changes.
The report found that the president's law missed the mark, although not by much. The overhaul will increase national health care spending by $311 billion from 2010-2019, or nine-tenths of 1 percent. To put that in perspective, total health care spending during the decade is estimated to surpass $35 trillion.
Administration officials argue the increase is a bargain price for guaranteeing coverage to 95 percent of Americans. They also point out that the law will decrease the federal deficit by $143 billion over the 10-year period.
The report's most sober assessments concerned Medicare.
In addition to flagging provider cuts as potentially unsustainable, the report projected that reductions in payments to private Medicare Advantage plans would trigger an exodus from the popular alternative. Enrollment would plummet by about 50 percent. Seniors leaving the private plans would still have health insurance under traditional Medicare, but many might face higher out-of-pocket costs.
In another flashing yellow light, the report warned that a new voluntary long-term care insurance program created under the law faces "a very serious risk" of insolvency.
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHHAHAAHAH SNORT
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA SNORT HAHAHAHAHAHA....
No seriously was there ANYONE who DIDN’T know this was going to be the case?
not even 1 month into it and it is being said that is will cost more then excepted...must be trying to get the public (John Q Stupid) to except the fact and get over it before election time
bump
This is no surprise to Obama. He knew it all along. He lied over and over during the passing of this bill.
Democrats knew it also, anyone with half a brain knew it.
Replace the Lying Democrats in 2010 and starve this bill to death by cutting off any and all funds related to it.
Yes, and whatever increased costs they admit to now, will be much worse in reality.
The current occupant of the White House. And he’ll never believe it, even after he’s been consigned to the rubber room.
Do I smell another “Joe Wilson Award” coming on?
The kenayn lied again... for the 10,098,765,659,887,057,456th time today!
LLS
This will be spun as a positive. One percent increase over 10 years? Give me a break! I’ll be surprised if it’s less than 1000 percent.
And another Obama Democrat scamming Medicare and Medicaid.
Investigators Raid N.Y. Senate Official’s Office, Seeking Evidence In Medicare, Medicaid Fraud Lawsuit
Topics: Medicare, Medicaid, Quality
Apr 22, 2010
The New York Times: “Federal and state investigators raided the Bronx offices of the Soundview HealthCare Network early Wednesday, seeking records as part of a joint investigation into the business and political activities of the Senate majority leader, Pedro Espada, Jr. More than a dozen agents from the Federal Bureau of Investigation and the Internal Revenue Service, joined by investigators from the office of Attorney General Andrew M. Cuomo, arrived at Soundview’s offices on White Plains Road shortly before 7 a.m., when the first employees arrived to open the doors for the day. The raid came one day after Mr. Cuomo filed a broad civil lawsuit against Mr. Espada, a Bronx Democrat, and 19 other current and former Soundview officials, accusing them of ‘looting’ at least $14 million from the nonprofit organization to pay for Mr. Espada’s personal and campaign expenses.”
“Mr. Cuomo’s civil suit accused Mr. Espada of siphoning Soundview funds — much of it Medicare and Medicaid funding from the state and federal governments — to pay for restaurant meals, legal fees and campaign expenses, including $100,000 worth of mailings to voters” (Confessore and Rashbaum, 4/21).
http://www.kaiserhealthnews.org/Daily-Reports/2010/April/22/Fraud.aspx
Did they get a threatening letter from Barney Frank yet?
* It is not about health care. It is about power and control. If costs go up and foster more dependency on government programs, so much the better. *
Dang straight. Oops, the evil was deeper than we thought - must implement a VAT. Ooops, nasty rich folks started hiding their money - must give more exemptions for the poor and raise on the rich. Ooops ...
Present this to an 0bama supporter,
they’ll glaze over,
and say something inane like
“I’m sure they’ll be able to handle it”
This was the response I got when I walked a lib
down the logical path of shortages and rationing.
Has anyone come by a link to the report?
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