It is true that the CBO projects that over the next ten years Obamacare will reduce the deficit by $109 billion (actually a drop in the bucket considering the debt increases at the rate of over $3 million a minute).
However, before we jump for joy or count on the cash it’s time for a reality check. If that reduction occurs, the savings are coming not from reducing the growth in health care costs or even efficiencies, but rather from your pocket.
In other words, in concept it’s a tax increase. All types of taxes, surcharges and fees are part of the Affordable Care Act, they apply to insurers, employers, drug companies and individuals, flexible spending accounts are limited to $2500, employers are charged fees to subsidize the new exchanges and federal cut backs in payments under Medicare shift costs to the private sector.
In the name of expanded health care coverage and mandated new benefits, you may be ok with all the above, and that’s fine, just remember Federal savings have to come from somewhere… mostly you.
The other question in all these savings assumptions and one noted by the CBO, is whether all the changes designed to lower costs actually work, are implemented, whether they will stay as is during successive Congresses and what will happen beyond the ten years (now eight) for which cost/saving projections are made. In other words, there are many assumptions in that $109 billion number that are unlikely to occur as planned.
Related articles
- CBO: Obamacare still cuts deficit (maddowblog.msnbc.msn.com)
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