CBO Scores Obamacare over 10 Years of Revenue and 9 Years of Implementation and finds it about Twice as Costly

Posted by PITHOCRATES - March 18th, 2012

Week in Review

The news just keep getting worse.  Obamacare is twice as costly.  It will destroy the private health insurance industry. Prolong the Great Recession.  And reduce the quality of our health care.  There’s just nothing good that we can say about it.  Other than, perhaps, it will make President Obama a one-term president.  Like Jimmy Carter.  Who also wreaked  economic destruction on the nation.  Making way for the new president to repeal Obamacare.  And save the nation from this most tragic fate (see ObamaCare: If Possible, The News Is Getting Worse by Grace-Marie Turner posted 3/14/2012 on Forbes).

To mark the law’s two-year anniversary, the House of Representatives is planning a vote to repeal one of the law’s most unpopular provisions — the Independent Payment Advisory Board (IPAB), which many seniors fear will become Medicare’s rationing board…

ObamaCare will cost $1.76 trillion over a decade, according to a new projection released Tuesday by the Congressional Budget Office, rather than the $940 billion forecast when it was signed into law.

The new 10-year projections cover nine years of ObamaCare’s implementation (2013-2022). Original estimates counted only six years of implementation — a budget gimmick to obscure the true cost of the law. At this rate, the conservative estimates of ObamaCare’s cost will be $2 trillion over 10 years, not the $1 trillion that President Obama promised…

Sen. Mike Enzi (R-WY) released a statement saying that the CBO’s estimate also shows that the new health law will dramatically increase Medicaid spending and result in 4 million fewer people getting health insurance through their jobs. So much for being able to keep the coverage you have now “no matter what,” as the president promised.

There will be rationing.  This despite the $2 trillion price tag for the program.  Which when you compare 10 years of revenue to 10 years of implementation the price shoots up from $1 trillion to somewhere closer to $2 trillion.  Which adjusts their previous estimate up 100%.  Talk about a large margin for error.  Which really begs the question do you want the same people who were off 100% in their cost estimates running one-sixth of the U.S. economy?  Or be in charge of rationing life-saving health care services?  And if that wasn’t bad enough (and don’t you think it should be?) it will also end private health insurance like you have now.  Meaning that if you like the plan you have, tough.  You’re going to lose it.

An AP-GfK poll taken early this month shows that only about a third of Americans (35 percent) support the health care law, while nearly half (47 percent) oppose it. That’s about the same split as when it passed.

Opposition remains strongest among seniors, many of whom object to Medicare cuts that were used to help finance coverage for younger uninsured people…

A new study of employers conducted by Willis Human Capital Practice found that employers expect higher health costs for both employers and employees as a result of ObamaCare, and many expect to shift employees into taxpayer-paid coverage once the option is available. That shift would certainly exacerbate the exploding costs of the law.

Last year, health costs rose 9 percent for employers, triple the rate of the year before ObamaCare’s provisions began to be implemented. Employers expect costs to only go higher…

Uncertainty about the future of the health sector is also drying up investor capital — and threatening tomorrow’s medical innovations. The share of venture dollars flowing to seed and early-stage investments in biotechnology and medical devices has plummeted since 2007, when investors pumped $3.6 billion into 332 deals in which a price was disclosed, according to data compiled for Kaiser Health News by FactSet Research Systems. Overall venture investing declined by nearly one-third as the economic recession set in.

Obamacare is unpopular.  It will gut Medicare.  Kill the private health insurance industry.  And when it does all those people covered under plans they got at work will be dumped into Obamacare.  Absolutely exploding costs.  And forcing more rationing to spread limited resources over more patients.

The economy is mired in recession.  The Great Recession lingers on.  With unemployment at 14.9% (the more realistic U-6 rate that counts everyone who can’t find full time work as opposed to the U-3 rate that doesn’t count everyone who can’t find full-time employment).  And because of the costs of Obamacare employers aren’t hiring.  So the economy isn’t going to improve anytime soon.

With the fall in medical investment you can add in a further decline in quality to the high costs and rationing of health care.  While the economy sinks further into recession.  Unless the next president repeals Obamacare.  Or the Supreme Court strikes it down first.  For if we don’t repeal it the country may never recover from the economic fallout that Obamacare wreaks.

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