I know, I know — it doesn’t usually take me until late in the afternoon to find one of these for you. But this one is a biggie and, if you’ll pardon the expression, worth the wait. On the other hand, is it really news when government promises to save you money on overhead costs, but then radically increases your overhead costs?
Well, that’s the latest report on ♡bamaCare!!!’s latest unintended consequence.
The administrative costs for healthcare plans are expected to explode by more than a quarter of a trillion dollars over the next decade, according to a new study published by the Health Affairs blog.
The $270 billion in new costs, for both private insurance companies and government programs, will be “over and above what would have been expected had the law not been enacted,” one of the authors, David Himmelstein, wrote Wednesday.
Those costs will be particularly high this year, when overhead is expected to make up 45 percent of all federal spending related to the Affordable Care Act. By 2022, that ratio will decrease to about 20 percent of federal spending related to the law.
The study is based on data from both the government’s National Health Expenditure Projections and the Congressional Budget Office. Both authors are members of Physicians for a National Health Program, which advocates for a single-payer system.
“This number – 22.5 percent of all new spending going into overheard – is shocking even to me, to be honest. It’s almost one out of every four dollars is just going to bureaucracy,” the study’s other author, Steffie Woolhandler, said Wednesday.
That money — that quarter of a trillion dollars — comes right out of our pockets, and into Washington’s gaping maw. Just to administer a law most Americans wish had never been enacted.
That Means It’s Working™
Bending the growth curve of health care spending: In keeping with President Obama’s pledge that reform must fix our health care system without adding to the deficit, the Affordable Care Act reduces the deficit, saving more than $200 billion over 10 years and more than $1 trillion in the second decade. The law reduces health care costs by rewarding doctors, hospitals and other providers that deliver high quality care, making investments to fund research into what works, and cracking down on waste, fraud, and abuse.
I think we know where the real waste, fraud, and abuse are.