Obamacare roundup: cost overruns, lies, and more
Yesterday, at Human Events, John Hayward joins the chorus of I-told-you-sos on the true costs of Obamacare:
The big ObamaCare news this week isn’t really “news” to anyone who was smart enough to see through the President’s obfuscations and fraudulent accounting when ObamaCare was being rammed down our throats. No group has ever been more utterly vindicated than ObamaCare critics, who were right about absolutely everything they said.
One of Obama’s sleaziest tricks was front-loading revenue into ObamaCare, while deferring expenses for as long as possible. This made it look like it would cost a lot less than it actually would. How much less? Oh, about half as much as the true cost… and that’s according to estimates from a government agency known for its extreme caution and static analysis methods.
He’s right. Plenty of people were shouting from the tallest mountaintop, to all who could hear, that the cost projections of Obamacare were a colossal hoax. In fact, it wasn’t even a particularly good hoax, as it was obvious that they were playing easily spotted dirty tricks like double-counting Medicare cuts. In fact, here is Secretary Sebelius being forced to admit as much:
In light of the obvious nature of the fraud, and the loud chorus calling it to the nation’s attention at the time, one wonders upon whom these new revelations from the CBO have an impact. Are there people left who are still undecided on the law? No doubt there are some, so it is important that the news be spread as far and wide as possible.
Just how bad is the cost overrun? Here’s Hayward again:
The Congressional Budget Office does 10-year forecasts, so now that it’s 2012, they’re looking out to 2022, when some of the biggest fiscal damage from ObamaCare reveals itself. What they found is very ugly indeed, as Fox News reports:
In a largely overlooked segment of the CBO’s update to the budget outlook released Tuesday, the independent arm of Congress found that the bill will cost $1.76 trillion between now and 2022.
That only counts the cost of coverage, not implementation costs and other changes.
“The bill spends more than the president promised, it covers fewer people — probably 2 million fewer people — and it taxes more than was expected,” said Sen. Jeff Sessions, R-Ala., ranking member on the Senate Budget Committee.
What if we throw in those implementation costs? Where does that leave us, Senator Sessions?
“The full accounting of the bill is $2.6 trillion. That’s a fair and accurate analysis of what the bill would cost, according to CBO,” Sessions said, noting how the cost dwarfs the fight over the 10-year debt reduction plan debated last year.
“We spent a whole summer fighting over a way to reduce spending by $2.1 trillion and here this bill is going add $2.6 trillion more in spending.”
Obamacare was a colossal lie, and it is a colossal disaster for the economy. It cannot succeed as a program, and it threatens to bring the economy down with it. And yet it is Obama’s signature achievement. The mind reels.
Here is more information on Obamacare’s costs, budget gimmicks, penalties, and more from two different House committees:
CBO Unravels Obamacare Budget Gimmicks:
Cost of coverage increases along with penalties on individuals and job creators
The nonpartisan Congressional Budget Office today released new estimates on the cost of the president’s health care law, revealing a shocking new sticker price of $1.8 trillion.
According to the report, the estimated gross cost of coverage for FY2012-2021 has increased to $1.48 billion, which is “$50 billion higher than last year’s projection.” Some are already trying to present one side of the report and simply highlight a reduced net cost, but a closer look at CBO’s analysis unravels how the Democrats used budget gimmicks to hide the true cost of the health care law. The report continues, “An additional $99 billion in net deficit reduction from penalty payments, the excise tax on high-premium insurance plans, and other effects on tax revenues and outlays—with most of those effects reflecting changes in revenues.” Meaning? The individual mandate penalties and taxes on job creators hid the law’s $50 billion increase in the gross cost of the coverage.
According to CBO, four million fewer Americans will receive employer-based insurance, leading “to an increase in estimated revenues because a larger share of total compensation will take the form of taxable wages and salaries and a smaller share will be in the form of nontaxable health benefits.”
Despite former Speaker Nancy Pelosi’s promise that the health care law would create 4 million jobs, CBO explains one of the reasons for the increase in the cost of coverage is due to the weak economy that continues on the president’s watch. The report explains, “the unemployment rate is higher throughout the projection period than it was in last year’s forecast. CBO also now estimates that wages and salaries will be lower than it previously anticipated. Those changes yield an increase in the projected number of people eligible for Medicaid and CHIP as a result of the ACA.” Since more Americans are unemployed than projected, more people will be forced onto Medicaid. Speaker Pelosi was also right when she said we’d have to pass the bill to find out what was in it.
New ObamaCare Analysis Same as the Old – Still Wrong Prescription for America
Top five facts from non-partisan analysis shows Americans are right to dislike the Democrats’ health care law
House Ways & Means Committee
Today, the nonpartisan Joint Committee on Taxation (JCT) and Congressional Budget Office (CBO) released an updated analysis of the President’s health care law. Below are five facts every American should know about this report:
- Spending jumps to $1.8 trillion – With America already borrowing 40 cents out of every dollar it spends, this massive increase in federal spending is simply unsustainable.
- Four million Americans will lose employer-provided health insurance – In just one year, 2016, CBO now predicts four million more Americans will lose the health insurance they have through the workplace than CBO predicted just last year. This will force these hardworking Americans to purchase government-mandated health insurance in government-run exchanges or pay a penalty.
- Small businesses left to fend for themselves – The analysis shows that the byzantine small business tax credits are overwhelmingly being rejected by small businesses. The new analysis shows $20 billion less will go to these credits, leaving employers to struggle with the high cost of health insurance.
- More employers choose to pay a fine over providing health insurance – Many economists, and even some companies admitted, that it would be cheaper (and thus more profitable) for employers to pay the employer mandate penalty than to provide their workers with health insurance coverage. The new JCT/CBO analysis confirms more and more employers are dumping insurance coverage, largely because of the costly benefit package being mandated by the Obama Administration. In fact, JCT/CBO now predicts businesses will opt to pay an additional $15 billion in penalties instead of providing health insurance coverage to their employees.
- President Obama’s failed economic policies leading to a weaker economy, lower wages & fewer jobs – The JCT/CBO analysis explains that one of the major reasons for adjusting their predictions is due to “changes in the economic outlook.” According to the analysis, “In that forecast, the unemployment rate is higher throughout the projection periods than it was in last year’s forecast. CBO also now estimates that wages and salaries will be lower than previously anticipated.” As a result, more Americans will be forced to enroll in government-run, and taxpayer-financed, health care programs (Medicaid and CHIP).