Working Families Just Can’t Afford ObamaCare

ObamaCare is Increasing Healthcare Costs, Hiking Premiums for Families and Exploding the Deficit

• A recent study shows ObamaCare is driving up healthcare costs, undercutting one of the Democrats’ main promises about ObamaCare: that it would bend the cost curve down.
• These rising costs are being reflected in higher premiums for working families and their employers, many of whom are opting to drop coverage for their workers.
• ObamaCare’s cost growth is also adding to the deficit, deflating Nancy Pelosi’s infamous promise that ObamaCare wouldn’t “add one dime to the deficit.”

A recent study shows ObamaCare is driving up healthcare costs, undercutting one of the Democrats’ main promises about ObamaCare: that it would bend the cost curve down:

HEALTHCARE COSTS TO RISE 7.4% AS OBAMACARE TAKES FULL EFFECT: “In 2014, health spending growth is expected to accelerate to 7.4 percent as the major coverage expansions from the Affordable Care Act begin.” (Sean P. Keehan, Gigi A Kuckler, et al, “National Health Expenditure Projections: Modest Annual Growth Until Coverage Expands and Economic Growth Accelerates,” Health Affairs, July 2012)

OBAMACARE TO INCREASE HEALTHCARE COSTS BY $478 BILLION THROUGH 2021: “For 2011 through 2021, national health spending is projected to grow at an average rate of 5.7 percent annually, which would be 0.9 percentage point faster than the expected annual increase in the gross domestic product (GDP) during this period. During this period, the Affordable Care Act is projected… to add about $478 billion in cumulative health spending.” (Sean P. Keehan, Gigi A Kuckler, et al, “National Health Expenditure Projections: Modest Annual Growth Until Coverage Expands and Economic Growth Accelerates,” Health Affairs, July 2012)

BROKEN PROMISE: “And everybody who’s looked at it says that every single good idea to bend the cost curve and start actually reducing health care costs are in this bill.” (Remarks By President To House Democratic Congress, States News Service, 3/20/2010)

PRESIDENT OBAMA: “Finally, my proposal would bring down the cost of health care for millions — families, businesses, and the federal government.” (“Remarks by the President on Health Care Reform,” The White House, 3/3/2010)

These rising costs are being reflected in higher premiums for working families and their employers, many of whom are opting to drop coverage for their workers:

BROKEN OBAMA PROMISE: “THIS LAW WILL LOWER PREMIUMS.” (“Remarks by the President at the Families USA Health Action Conference,” The White House, 1/28/2011)

BROKEN PROMISE: OBAMACARE WOULD LOWER COSTS AND FAMILIES WOULD SAVE $2,500/YEAR ON PREMIUMS: OBAMA: “Coupled with comprehensive reform, this could result in our nation saving over $2 trillion over the next 10 years, and that could save families $2,500 in the coming years — $2,500 per family.” (“Statement by the President After Meeting With House Democratic Leadership,” The White House, 5/13/2009)

OBAMACARE TO INCREASE PRIVATE INSURANCE PREMIUMS BY 4.1% IN 2014: “In 2014, growth in private health insurance premiums is expected to accelerate to 7.9 percent, or 4.1 percentage points higher than in the absence of health reform.” Sean P. Keehan, Gigi A Kuckler, et al, “National Health Expenditure Projections: Modest Annual Growth Until Coverage Expands and Economic Growth Accelerates,” Health Affairs, July 2012)

FAMILY HEALTH INSURANCE PREMIUMS ROSE 9% IN 2011, WITH OBAMACARE PLAYING A ROLE: (Julie Appleby, “Cost of Employer Insurance Plans Surge in 2011,” Kaiser Health News, 9/27/2011)

EMPLOYEES’ SHARE OF PREMIUM COSTS HAS ALREADY INCREASED 9.3% FROM 2011 TO 2012, $235 PER PERSON: “Employees’ share of premium costs increased 9.3% between 2011 and 2012, with the dollar burden rising from $2,529 to $2,764.” (“Performance in an Era of Uncertainty,” Towers Watson/National Business Group on Health Employer Survey on Purchasing Value in Healthcare, March 2012)

BY A MARGIN OF 8 TO 1, EMPLOYERS EXPECT OBAMACARE TO INCREASE COSTS: “By a margin of 8 to 1, those who believe Health Care Reform will trigger a cost increase outnumber those who believe Health Care Reform will create savings. Yet the survey responses reflect that few employers have started to reframe employee expectations relative to Health Care Reform.” (“The Health Care Reform Survey: 2011-2012,” Willis, March 2012)

20 MILLION WORKERS COULD LOSE THEIR EMPLOYER-SPONSORED INSURANCE: “A new report from the Congressional Budget Office hands critics of the health reform law a great new talking point: Under a worst-case scenario, the law could lead to 20 million people losing their employer-sponsored insurance in 2019.” (J. Lester Feder, “CBO: ACA Could Jeopardize Workplace Coverage,” Politico, 3/15/2012)

MCKINSEY STUDY: 30% OF EMPLOYERS SAY THEY “DEFINITELY” PLAN TO DROP EMPLOYEE COVERAGE: “Our survey found, however, that 45 to 50 percent of employers say they will definitely or probably pursue alternatives to [employer-sponsored insurance] in the years after 2014. Those alternatives include dropping coverage, offering it through a defined-contribution model, or in effect offering it only to certain employees. More than 30 percent of employers overall, and 28 percent of large ones, say they will definitely or probably drop coverage after 2014.” (John Tozzi, “Health Reform Won’t Dismantle Employer Coverage, Report Says,” Bloomberg Businessweek, 10/21/2011)

THREE-FOURTHS OF COMPANIES CONSIDERING DROPPING HEALTH COVERAGE FOR EMPLOYEES: “Only 23% of companies are confident that they will offer health benefits in 10 years, down from 73% in 2007 and 57% in 2009.” (“Performance in an Era of Uncertainty,” Towers Watson/National Business Group on Health Employer Survey on Purchasing Value in Healthcare, March 2012)

ObamaCare’s cost growth is also adding to the deficit, deflating Nancy Pelosi’s infamous promise that ObamaCare wouldn’t “add one dime to the deficit”:

PROMISE BROKEN: OBAMACARE WOULD REDUCE THE DEFICIT: PELOSI: ” ‘The bill is fiscally sound, will not add one dime to the deficit,’ Pelosi proclaimed.” (Chris Good, “Pelosi: Health Care Bill Reduces Deficit, Spends More Than Senate Bill,” The Atlantic, 10/29/2009)

MEDICARE TRUSTEE: OBAMACARE TO ADD AT LEAST $340 BILLION TO THE DEFICIT: (Lori Montgomery, “Health-care Law Will Add $340 Billion to Deficit, New Study Finds,” The Washington Post, 4/9/2012)

OBAMACARE TO COST $1.76 TRILLION OVER THE NEXT 10 YEARS: (Phillip Klein, “CBO: ObamaCare to Cost $1.76 Trillion Over 10 Years,” The Washington Examiner, 3/13/2012)

CBO: HEALTHCARE COSTS ARE RISING AND RISING FASTER: “Specifically, if current laws remained in place, spending on the major federal health care programs alone would grow from more than 5 percent of GDP today to almost 10 percent in 2037 and would continue to increase thereafter.” (“The 2012 Long-Term Budget Outlook,” Congressional Budget Office, 6/5/2012)

PER-CAPITA HEALTHCARE SPENDING GROWING 1.6% FASTER THAN GDP: (Press Release, “Rising Costs Could Double Federal Health Care Spending and Push Debt to 200 Percent of GDP by 2037,” House Energy and Commerce Committee, 6/5/2012)

DRIVEN IN LARGE PART BY RISING HEALTHCARE COSTS, THE DEBT IS SET TO DOUBLE THE SIZE OF THE ECONOMY:  (Erik Wasson, “CBO Warns of Grim Long-Term Debt Outlook,” The Hill, 6/5/2012)