PPACA Cost Estimates Soar
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Posted on Monday, Jun 25, 2012
One of the most troubling aspects of the Patient Protection and Affordable Care Act (PPACA), also called “Obamacare,” is the rising cost estimates. By a very narrow margin, Congress passed a law using inaccurate cost estimates:
The “original” cost estimate: $940 billion over 10 years
The “new” cost estimate: $1.76 trillion over 10 years, according to the non-partisan Congressional Budget Office (CBO)
With this new figure, the CBO also estimates that health insurance costs to small businesses will increase, not decrease as promised. If small businesses across the country have higher costs, they’ll have fewer dollars to invest in jobs and new growth.
In general, there is also a cloudy picture of what is factored into estimates of health care reform costs. The original forecast, for instance, included Medicare cuts—which haven’t been made. If these cuts are made, they may be applied to the Medicare Hospital Insurance trust fund—not to health care reform.
The CBO also acknowledged that its earlier estimates failed to include billions for new administrative costs of the IRS and the Department of Health and Human Services.
For American citizens—and Members of Congress—to make informed decisions, dependable costs estimates are essential. Today, we have a stalled health reform policy, and we don’t know what it’s going to cost if it moves forward.
We need sensible, market-driven health care that does not undermine our nation’s economy. And to measure the impact on the economy, we need reliable cost estimates—not back-of-the-envelope calculations.
Stay tuned for more updates, and be sure to follow the discussion on Facebook and Twitter.