Stanley Feld M.D.,FACP,MACE
The fact that the Obama administration believes that Americans are stupid as expressed by Jonathan Gruber is an insult on its own. The fact that the Obama administration persists in treating us as if we are stupid simply compounds the insult.
In the run up to the February 15th ending of the 2015 www.healthcare.gov enrollment period and the new Republican congress’ upcoming vote to repeal Obamacare, the Obama administration is trying to convince Americans that Obamacare is working and is good for all Americans.
The public knows better by now. The middle class is feeling the economic pain Obamacare has created. They sense President Obama telling another lie.
Recent headlines have been
Affordable Care Act will Cost 20% Less Than Initial Projections, CBO Says
Right-Wing Media Won't Tell You That The CBO's New Obamacare Cost Estimates Are Lower Than Expected
President Obama’s deception implies Obamacare is cost effective. All the CBO is saying is the numbers given to it, this time, by the Obama administration show the cost of Obamacare will be 20% lower than the CBO original estimate in 2011.
The additional new taxes for Obamacare were initiated in 2011 based on those CBO estimates.
One important reason for the 20% decrease in cost from the original estimate in 2010 is that fewer people have chosen to enroll in www.healthcare.gov in 2014.
Since fewer people enrolled there is a $51 billion of savings in federal subsidies for fewer enrollees in health insurance exchanges.
This represents a failure of Obamacare not a success as claimed by the Obama Administration.
The government estimates a total 10.7 million will enroll by February 15,2015. On February 2,2015 there were 7.53 million qualified enrollees. The original estimate in 2010 was 17.5 million. The first 2015 estimate enrollment in 2014 was reduced 3 months ago to 13 million. The enrollment figure was modified.
The taxes the middle class have been forced to pay for Obamacare were not modified.
The real numbers are totally confusing because the government documentation is very difficult to follow. CMS modifies the numbers constantly with corrections. The modifications serve to keep Americans stupid and confused.
The Obama administration is now spinning the significance of the CBO report to its political advantage.
The online Daily Mail of Britain published this online story. The headline does not exactly reflect potential consequences of the Facts.
"Obamacare program costs $50,000 in taxpayer money for every American who gets health insurance, says bombshell budget report."
- · Government will spend $1.993 TRILLION over a decade and take in $643 BILLION in new taxes, penalties and fees related to Obamacare
- · The $1.35 trillion net cost will result in 'between 24 million and 27 million' fewer Americans being uninsured – a $50,000 price tag per person at best
- · The law will still leave 'between 29 million and 31 million' nonelderly Americans without medical insurance
- Numbers assume Obamacare insurance exchange enrollment will double between now and 2025 "
Buried in a 15-page section of the nonpartisan organization's new ten-year budget outlook were numbers to calculate the cost of Obamacare legislation to add patients to the insurance role. “The $1.35 trillion net cost will result in 'between 24 million and 27 million' fewer Americans being uninsured – a $50,000 price tag per person at best.”
It is impossible to judge whether these estimated figures are correct because estimates are mostly wrong.
What we do know is Obamacare is not doing well from everyone’s except President Obama’s point of view. The spin is keeping all Americans who are seeking the truth confused. Americans want a solution to the deterioration of the healthcare system.
Another reason for the reduction in Obamacare healthcare spending could come from the reduction in reimbursement to physicians.
Insurance companies have not suffered the same reimbursement insult because the government has subsidized the healthcare insurance industry and provides a guaranteed profit that is not included in the CBO estimate.
A third reason for the reduction in spending could be explained in part by the growth of consumer-driven health plans and the Great Recession.
A fourth reason for the 20% reduction could be that the insurance products on the health insurance exchanges have high deductibles. It takes a while before the patients reach their deductibles and the government starts spending money on reimbursement. Patients can also be staying away from receiving appropriate medical care because they cannot afford the deductible.
The CBO report projects that 75 percent of enrollees will receive subsidies in 2015. However, 87 percent received subsidies in 2014. This is wishful thinking on the part of those who provided the data for the CBO to evaluate to believe the subsidy percentage will decrease. The CBO projected a further decrease in subsidy to 71% in 2025.
The health insurance exchange experience so far suggests there is adverse patient selection. It can be assumed that there will be an increase in healthcare risk and an increase subsidy percentage in the future.
However, I do not think anyone can draw any conclusions from the CBO’s report.
I do believe that Obamacare is President Obama's push to a single party payer healthcare system because of the structure of its market driven elements are destined to fail.
Government will then take over telling us what medical care we can or cannot have.
”We are fast approaching the stage of ultimate inversion: the stage where the government is free to do anything it pleases, while the citizens may act only by permission.” - Ayn Rand
The CBO report of a 20% reduction is spending as a result of Obamacare is meaningless. It is being used by President Obama to confuse the public for political reasons.
The opinions expressed in the blog “Repairing The Healthcare System” are, mine and mine alone
Please have a friend subscribe
Comments