Shock News!!! Obamacare More Than Double Original Cost Estimates!!!

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From Townhall…..

President Obama’s health care law was projected to spend $898 billion over ten years when it was passed. That price tag largely masked the true ten-year cost because of the delayed implementation of the law, and the CBO revised its cost estimate in 2013 to show that the law will spend $1.85 trillion in the next ten years.

But, that’s a conservative estimate.  Here’s one of the problems that exemplifies Obama’s idiocy.  It’s the pre-existing clause……

One of Obamacare’s provisions, the Pre-Existing Condition Insurance Plan, has nearly run out of its $5 billion budget, and HHS Secretary Sebelius has proposed that the states that run the administration of the program find a way to pay for it themselves.

The root of the problem is that the federal health care law capped spending on the program at $5 billion, and the money is running out because the beneficiaries turned out to be costlier to care for than expected. Advanced heart disease and cancer are common diagnoses for the group.

Obama did not ask for any additional funding for the program in his latest budget, and a Republican bid to keep the program going by tapping other funds in the health care law failed to win support in the House last week.

State officials say one likely consequence of the money crunch will be a cost shift to people in the program, resulting in sudden increases in premiums and copayments. Many might just drop out, said Keough.

No doubt.  Whodda thunk it?  This is caused by the left’s fundamental lack of understanding of anything which concerns money.  They simply have no grasp of the concept.  Insurance companies didn’t refuse to cover pre-existing diseases because they were a bunch of mean-spirited people.  They didn’t cover them because they couldn’t afford them.  So the federal government steps in and says they’ll mandate they get covered and make funds available for this.  Guess what?  It turns out the insurance industry knew more about insurance than the federal government.  Shocking, I know. 

Obamacare is already out of money and its most onerous provisions have yet to be implemented.  Think about this.  On the pre-existing clause, alone.  We’re only half way through the fiscal year and they’ve burned through the allotted $5 billion.  Meaning, that in this relative minor implementation, it will cost us more than $100 billion over the ten-year period of time.  And that assumes a relatively static cost of such.  We know, because we’re living longer, the cost of R&D, inflation, population expansion, regulatory costs, both present and future, administration, etc….. that this cost will increase significantly over this period of time.  And, again, we’ve just barely gotten started on implementing Obamacare.  Next year promises to be a horrible debacle. 

Zero and Sebelius are now insisting that the states pick up the tab on these costs overruns.  Which would be a great plan if the states could, you know, actually afford such. 

All of this was entirely predictable.  And it was predicted.  Things of this nature are the results of when people try to effect changes to things they know nothing about.  Because of their unfathomable ignorance, there is no possibility that they’d get anything right.  They keep getting things utterly wrong but, are incapable of learning because they don’t like the answers given by people who know. 

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24 Responses to Shock News!!! Obamacare More Than Double Original Cost Estimates!!!

  1. Latitude says:

    you know…..it doesn’t hurt near as much when I pull my hair out one at a time

  2. leftinbrooklyn says:

    Surely Obamacare exceeds the legal limit of unicorns and must be classified as assault legislation.

  3. PhilJourdan says:

    Your article is factually flawed, but I think it is due to a confusion of terminology. The cost of Obamacare has been costed out by the CBO at over $2.7t over the next 10 years. However, about $1t is offset by tax increases. Taxes born mostly (over 75%) by the middle class (it has already hit us very hard).

    Also, while I do have a degree in Economics, I have a minor in Mathematics (I almost got a double degree, but decided that earning a living was important). So I roomed and socialized with mostly math majors. The smartest ones became actuarialists. This is a very advanced area that is used by all Insurance companies to not only set premium prices, but also to alert them to both fraud and changing demographics. SO yes, many of my friends are actuarialists. And since they are the real cream of the crop in intelligence (a good one commanded a 6 figure salary out of college – 30 years ago!), they tend not to be in government (those are failed ones who cannot pull down the real bucks).

    So it is not surprising that both the CBO (which are accountants – the lower end of the Mathematics intelligence field) and Obama staffers are all of a sudden “surprised” that the cost is ballooning. Insurance companies, if you remember, were threatened when they started telling us that the cost estimates were garbage. Since they had nothing to gain (the democrats were in the pocket of the drug companies), they figured to just do an “I told you so”. Now they can.

    Last I heard, only 27 states had set up the exchanges and signed up for Obamacare. So pushing the cost of pre-existing conditions down to the other 25 is impossible. There is no mechanism for it.

    I will end with this analogy (for Tony and popeye – even though they will never grasp the simplicity and truth of it). Forcing insurance companies to cover pre-existing conditions is like forcing bookies to cover bets made on games after they are over. It is a sucker bet. The player already knows the score, and is simply making a 100% bet.

    • suyts says:

      They won’t understand that. Well, Tony might. But, betting is a good analogy for what insurance companies do, and, you’re right, many people entirely lost sight of this and what the function of an insurance company is. They bet. Insurance companies can’t exist unless they win more bets than the lose.

      • cdquarles says:

        Plus, the state regulations *REQUIRE* the actuaries confirm the soundness and stability of the pricing and investing models and *REQUIRE* the insurance companies to reprice their products accordingly, with the approval of the same state regulatory bodies.

        Now about the Dems being in the pharma’s pockets, I think you are wrong Phil. The pharmas are in the Dems’ pockets because they know what the Dems can do to them if they don’t go along with the program. And, then again, it could be both.

        • cdquarles says:

          Oh yeah, I regret having a double minor in French and Biology. It should have been French and Math. Oh well

        • philjourdan says:

          Someone has to do the icky stuff! I flunked dissection. 😉

          Fortunately, I could divide well.

        • philjourdan says:

          “it could be both” – yes, who benefits the most? I suspect that you are closer to the truth, and Pharma will be thrown under the bus before too long – as the democrats find a new darling to milk.

      • PhilJourdan says:

        Insurance companies are merely legal bookies. They make the odds even, and win on the vigorish.

        • suyts says:

          Yes, the same way bookies make money is the same way insurance companies make money. But, this was, is, and always will be the way insurance companies make money. Stop that and there is no insurance companies. But, that always was the goal.

  4. ThePhDScientist says:

    No actually your conservative post is all smoke and mirrors – a gross oversimplification of the CBO report (not surprising given it came from a conservative rag website). Interesting they don’t mention the CBO still predicts Obamacare lowers deficits – just a little.

    http://www.cbo.gov/publication/44008

    • suyts says:

      LOL, sure, I could reduce the deficit too if I extracted nearly $ 2 trillion from the people. That’s not are real big trick. Later, when they realize that once again they underestimated the cost, they’ll still claim a slight deficit reduction. It won’t come near the cost, but, hey, that’s something to hang your hat on.

  5. philjourdan says:

    The costs were backloaded (6 years in the first 10) while the revenues were front loaded (10 years of the first 10 years). We are in the 4th year. So yes, since the costs have not fully hit yet, it would have an impact THIS year. However, once all the costs kick in (not till 2018), the deficits mushroom.

    There is an easy way to remedy the situation. Repeal it now. That way we pay for the loss of revenue in 6 months.

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