April 21, 2011

IBD: Obamacare’s Costs Keep Rising, Media Yawns (Surprise, Surprise)

In a Wednesday evening editorial:

You’d think that when the Congressional Budget Office reported that Obama-Care would cost tens of billions of dollars more than it originally claimed, that would be news. Guess again.

Last month the CBO — Congress’ official budget scorekeeper — updated its forecast for ObamaCare’s price tag. Instead of $931 billion over seven years, the CBO now says it will cost $971 billion to pay for higher Medicaid costs, subsidies, tax credits and the rest — a $40 billion increase.

At the same time, the CBO now says ObamaCare’s new taxes — the penalties for not buying coverage, taxes on high-cost plans, and so on — will be $24 billion higher than it projected last March.

Of course, to Washington, these extra taxes are a good thing since they bring the government’s “net cost” down. But to the rest of us, it looks like the price of ObamaCare just went up by $64 billion.

The media’s response has been a collective yawn. …

… costs are almost certain to be far higher than even the new CBO forecasts suggest, once the reform’s vast and complex network of mandates, subsidies and regulations fully kicks in over the next three years.

… The plan’s high-risk pools, for example, have been a bust. Instead of the 375,000 enrollees the administration expected, just 12,000 signed up.

… Meanwhile, the administration has been forced to hand out more than 1,168 waivers to companies, unions and other groups — covering more than 2.9 million workers — who complained they would have to either hike premiums sharply, or drop coverage altogether.

And ObamaCare is already pushing up the cost of private insurance. Last fall, Hewitt Associates and Mercer both said reform was contributing to premium hikes this year. Even the AARP — an ardent backer of reform — told its own employees that ObamaCare was partly to blame for the rise in its insurance costs.

As usual with IBD, read the whole thing.

No one should be surprised. The surest thing besides death and taxes is that a major government initiative will cost exponentially more than advertised.

Share

1 Comment

  1. [...] IBD: Obamacare’s Costs Keep Rising, Media Yawns (Surprise, Surprise) Last month the CBO — Congress’ official budget scorekeeper — updated its forecast for ObamaCare’s price tag. Instead of $931 billion over seven years, the CBO now says it will cost $971 billion to pay for higher Medicaid costs, subsidies, tax credits and the rest — a $40 billion increase. [...]

    Pingback by Daily Dive-22 April 11 | adeliemanchot — April 22, 2011 @ 2:03 pm

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.