Bending the cost curve - up

It's not about health care reform; it's about politics and saving the Obama presidency.

The White House and Congress have placed a lot of emphasis on how Obamacare will put pressure on the cost curve, and bend it downwards. In fact, this is the main selling point of reform. We are told that the bill may not be perfect (???) but at least it will reduce the increase in health care costs over time.

Well, it's time to call "Bull" on that. Obama's own Centers for Medicare & Medicaid Services, or CMS hs given the lie to that empty boast.

Joseph Rago in the Wall Street Journal Political Diary (via America in the World ):

This week, the Office of the Actuary at the Centers for Medicare & Medicaid Services, or CMS, released a cost estimate for the House health bill. Its projections mostly track those issued by the Congressional Budget Office, but CMS does ask some questions that CBO so far hasn't pursued. The results aren't pretty.CMS estimates the House bill would add 2.1 percentage points to the (already high) annual growth rate of national health spending. In 2019, when the second decade of ObamaCare would kick in, the bill would add 2.7 points to the growth rate.

CMS also observes that the "game changers" President Obama and especially budget chief Peter Orszag used to promote, like comparative effectiveness research and more wellness programs, are actually nonchangers. They'll save a pitiful $2.1 billion over a decade -- about 0.002% of the $1.042 trillion in new spending authorized by the House bill.

Even the good news isn't so good. CMS says spending growth would be even higher except that so many more people will receive their care from government, allowing Washington to economize through "sizable discounts imposed on providers," which is one way of putting it. (Another way of putting it: Expect long lines and shabbier treatment as fewer doctors are willing to treat government-insured patients.)

The White House has apparently told Congress to ignore this report since when all the bills in the House come together, things will be different.

The WSJ quotes one staffer,"Isn't that a bit like saying don't worry about the ingredients of a cigarette because once we roll them all together it will be healthy for you?"

Obamacare will radically increase the cost of health care in America according to the White House's own actuarials. Apparently, there are no limits to the lies that Congress will accept - just as long as reform is passed and Obama's presidency saved.

 

Hat Tip: Ed Lasky

 

 

 

It's not about health care reform; it's about politics and saving the Obama presidency.

The White House and Congress have placed a lot of emphasis on how Obamacare will put pressure on the cost curve, and bend it downwards. In fact, this is the main selling point of reform. We are told that the bill may not be perfect (???) but at least it will reduce the increase in health care costs over time.

Well, it's time to call "Bull" on that. Obama's own Centers for Medicare & Medicaid Services, or CMS hs given the lie to that empty boast.

Joseph Rago in the Wall Street Journal Political Diary (via America in the World ):

This week, the Office of the Actuary at the Centers for Medicare & Medicaid Services, or CMS, released a cost estimate for the House health bill. Its projections mostly track those issued by the Congressional Budget Office, but CMS does ask some questions that CBO so far hasn't pursued. The results aren't pretty.

CMS estimates the House bill would add 2.1 percentage points to the (already high) annual growth rate of national health spending. In 2019, when the second decade of ObamaCare would kick in, the bill would add 2.7 points to the growth rate.

CMS also observes that the "game changers" President Obama and especially budget chief Peter Orszag used to promote, like comparative effectiveness research and more wellness programs, are actually nonchangers. They'll save a pitiful $2.1 billion over a decade -- about 0.002% of the $1.042 trillion in new spending authorized by the House bill.

Even the good news isn't so good. CMS says spending growth would be even higher except that so many more people will receive their care from government, allowing Washington to economize through "sizable discounts imposed on providers," which is one way of putting it. (Another way of putting it: Expect long lines and shabbier treatment as fewer doctors are willing to treat government-insured patients.)

The White House has apparently told Congress to ignore this report since when all the bills in the House come together, things will be different.

The WSJ quotes one staffer,"Isn't that a bit like saying don't worry about the ingredients of a cigarette because once we roll them all together it will be healthy for you?"

Obamacare will radically increase the cost of health care in America according to the White House's own actuarials. Apparently, there are no limits to the lies that Congress will accept - just as long as reform is passed and Obama's presidency saved.

 

Hat Tip: Ed Lasky