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O-Care Subsidies Will Push Costs Up By More Than 50%

From the Los Angeles Times:

Obamacare subsidies push cost of health law above projections

By Noam N. Levey | June 17, 2014

WASHINGTON – The large subsidies for health insurance that helped fuel the successful drive to sign up some 8 million Americans for coverage under the Affordable Care Act may push the cost of the law considerably above current projections, a new federal report indicates…

You don’t say.

That assistance helped lower premiums for consumers who bought health coverage on the federal marketplaces by 76% on average, according to the new report from the Department of Health and Human Services

While the generous subsidies helped consumers, they also risk inflating the new health law’s price tag in its first year.

The report suggests that the federal government is on track to spend at least $11 billion on subsidies for consumers who bought health plans on marketplaces run by the federal government… If these state [exchange] consumers received roughly comparable government assistance for their insurance premiums, the total cost of subsidies could top $16.5 billion this year.

That would be far higher than projections this spring from the nonpartisan Congressional Budget Office that the 2014 subsidies would cost the federal government $10 billion…

Imagine them being so badly mistaken in their projections. How does it happen, time and again?

The Congressional Budget Office estimated in April that the annual cost of subsidies will rise to $23 billion next year and $95 billion in 2024, although the budget office continued to project that all the law’s costs will be offset by additional revenue it raises and by cuts in other federal healthcare spending.

Right. Just like the way Medicare costs have been offset over the years.

This article was posted by Steve Gilbert on Wednesday, June 18th, 2014. Comments are currently closed.

2 Responses to “O-Care Subsidies Will Push Costs Up By More Than 50%”

  1. canary

    “That assistance helped lower premiums for consumers who bought health coverage on the federal marketplaces by 76% on average, according to the new report from the Department of Health and Human Services…”

    B.S. As in less coverage.

    I hear nothing but nightmares on the insured that did not switch to Obamacare and it’s no doubt the plan to force to
    singlepayer insurance.

    I had a supplemental insurance that I could not get on the internet. Called the number and they a message first told
    that they are paperless. Making different calls, I call a person that told me to call a different number. It took great convincing that the number she gave me was her own number.

    Eventually, I was told I was taken out of the system long ago, because indeed I never used it. So, I told them I wanted a refund for the years they took the premium out of my checking account, and only then they found me as easy as pie. I can not get them to my ID number back in the system.

    I’ll just keep at it and say I want my money back.

    I’ve heard everyone on Blue Shield is paying double premium.

  2. I love how they say “more than 50%”, but they don’t say how MUCH more than 50%. 300% is still more than 50%. 500% is still more than 50%. I’ve heard stories from friends who have had their premiums double. And this law still isn’t running on all cylinders. Just wait for 2016.

    And is the HHS taking into account the new humanitarian crisis at the border, and all the free healthcare we’re going to provide for the entire population of South America over the next 10 years? Is the HHS taking into account the new outbreaks of every disease these poor poor (future of America) unaccompanied children are going to cause for the rest of us. No, I didn’t think so. $24 billion isn’t going to begin to pay the bill for this one folks. Thanks Obama. You have single handedly moved America into the third world. But at least the oceans have stopped rising.




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