Remember when the President promised that Obamacare would reduce the cost of health insurance? â€śUnder [our] plan, if you like your current health insurance, nothing changes, except your costs will go down by as much as $2,500 per year,â€ť said Obama in 2008. The law, like Romneycare in Massachusetts, would magically eliminate the mythical â€śfree-rider problemâ€ť by massively subsidizing health spending for the lower middle class.
Well, the Office of the Actuary in the Centers for Medicare and Medicaid Services recently put out its annual projections of national health care spending. And, contrary to the President, the actuaries find that Obamacare will dramatically increase the near-term growth rate of health care costs. In 2014, the actuaries find that growth in the net cost of health insurance will increase by nearly 14 percent, compared to 3.5% if PPACA had never passed. The growth rate of private insurance costs will rise to 9.4 percent, from 5.0 percent under prior law: an 88% increase.
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"Medicare Actuary: Obamacare Will Triple the Growth Rate of Net Insurance Costs"