Harbingers of the Obamacare spending blowout
E. Thomas McClanahanThe structure of Obamacare was based on a plan adopted earlier in Massachusetts by then-Gov. Mitt Romney, and the fiscal agonies of that state may be providing the rest of the country a preview of what to expect when Obamacare is fully implemented.
Thanks in large part to the state’s rising health care costs, Gov. Deval Patrick is seeking an increase in the state income tax, as well as higher business taxes, fuel taxes, turnpike tolls and car taxes.
The Wall Street Journal editorial page argues that health care spending has crowded out spending for essentials like education, transportation and public safety. Health spending was about a quarter of the state budget six years ago. Now it’s over 40 percent. The state has already imposed price controls and a spending cap.
As for Obamacare, already there are clear signs that things aren’t working out quite as planned. People remember that the idea was sold as a way to “bend the cost curve down,” but costs aren’t cooperating much. In many states, health insurance premiums are rising rapidly.
Obamacare was also supposed to encourage innovations that would lower costs, one of which was digital health records. But The New York Times reported recently on a Rand study that found the conversion to digital, so far, has failed to reap the anticipated savings, once estimated at $81 billion a year.
As the story noted, “…evidence of significant savings is scant, and there is increasing concern that electronic records have actually added to costs by making it easier to bill more for some services.”
The real spending deluge is likely to come when (if) the state exchanges begin operating and start doling out subsidies for policies. Estimates for how many people will leave employer-provided insurance and migrate to the exchanges are all over the map. If the actual number is much higher than expected, costs will skyrocket — as will costs to the Treasury.
George Hunsucker
Northland
3 months, 3 weeks agoAny employer who keeps health insurance as a benefit needs a class in economics… It will be much better to terminate her/his plan and pay the fine. Why would any sane businessperson pay thousands for private coverage with the exchanges in existence……
Randall Anson
3 months, 3 weeks agoMr. Hunsucker- I am very much in favor of the Affordable Health Care Act and I am a loyal Democrat. Employers should not be depended on for health care for employees and families. That task makes our employers less competitive and is a huge distraction. Health care is not equivalent to other goods and services in the free market. No other goods or services involve betting your life. Insurance companies cannot be trusted as we all know. The rational solution is to provide health care for all without regard to status of health or pre-existing conditions provided for all through public support or in the alternative on a self-pay basis to cull the herd. Of course, the providers would scream about their loss of revenue, not the patients who would have moved on.
George Hunsucker
Northland
3 months, 3 weeks agoYou are going to see the “benefits” of no employer provided healthcare… I just do not want to see you bitching about zero care next year Randall….
Kent Mueller
3 months, 3 weeks agoRandall, please give quality evidence (and not anecdotal) that insurance companies cannot be trusts. As with anything, with a health policy, you get what you pay for. Know the fine print.
Your solution is to provide healthcare for all, no matter what. Who will pay for that? You want to take healthcare away from employers to make them more competitive. But who will be paying the taxes to make up the difference and the expanded cost of insuring more? Oh, yeah. But that will make us even less competitive. You, see? The money to pay for what you want just isn’t there with out significant increases in premiums and/or taxes. And what are you talking about when you say the providers will scream about their loss in revenue? Does that mean that you want the government to dictate pricing? ohhh myyyy Goddddd.
George Hunsucker
Northland
3 months, 3 weeks agoKent, I suspect Randall wants single-payer… The nirvana to the libs….
Kent Mueller
3 months, 3 weeks agoRandall, any response? Any support for the statements you made?
Kent Mueller
3 months, 3 weeks agoCrickets
George Hunsucker
Northland
3 months, 3 weeks agoAre Randall and YT related I wonder???????