More evidence Obamacare is a nightmare for taxpayers

In October, the Obama administration acknowledged that the portion of Obamacare that contributed the most deficit “reduction” — the CLASS Act, which created a new long-term care entitlement and allegedly was going to reduce deficits by $86 billion between 2012 and 2021 — was unworkable. The House this month voted to repeal the law, while the White House seeks a way to fix it. But the clear bottom line was that more than two-thirds of the $124 billion in promised deficit “savings” during these 10 years was unlikely ever to materialize.

Now, President Obama’s new budget finishes off the always-ludicrous notion that he could create a new, $1 trillion-a-decade entitlement and somehow reduce deficits. Avik Roy reports at Forbes:

The White House’s fiscal year 2013 budget adds $111 billion in exchange spending between 2014 and 2021, with even more spending to come in future years. … In 2021 alone, the difference between the two budgets is almost $20 billion, implying that exchange spending will be up by over $200 billion in the decade following 2021.

For the math-challenged: Subtracting $86 billion and $111 billion from an alleged deficit reduction of $124 billion equals a deficit increase of $73 billion. And this is the best-case scenario, as Roy goes on to explain:

If businesses do what the new health law clearly incentivizes them to do, exchange spending could be up by over $2 trillion in the decade following 2021.

The incentive to which Roy refers is the fact that Obamacare makes it relatively cheaper for employers to dump their health coverage, pay a fine and let employees use federal subsidies to buy health insurance in the federally mandated exchanges.

The costs for the most reckless piece of federal law in at least a generation only continue to rise, just as all of us who opposed Obamacare predicted. And the forecasts are only going to get worse with each passing year, if only because we are now burning through the years when Obamacare front-loaded new tax revenues before really adding new spending; that was another of the budgetary ruses Democrats used to create the fiction that Obamacare was fiscally responsible.

It is increasingly clear that taking the law completely off the books is the only way to avoid a true fiscal catastrophe.

– By Kyle Wingfield

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296 comments Add your comment

ByteMe

March 5th, 2012
5:59 am

We’re DOOOOMED!!!!!

:lol:

Of course, Romneycare would have been better, if only we had done that instead. ;)

Ayn Rant

March 5th, 2012
6:18 am

There are many useful features of the Affordable Health Care Act, but one glaring deficiency: the failure to provide a public option similiar to Medicare, which removes the useless premium-stripping insurance companies from the front of the health care process to the back.

The Romney plan and “insurance exchanges” are legislative ploys to prolong the role of the insurance companies as middlemen bewteen the patients and the health care providers.

Lil' Barry Bailout (Unexpectedly Revised Downward)

March 5th, 2012
6:26 am

Ayn Rant: The Obozo plan and “insurance exchanges” are Democrat ploys to prolong the big-government liberals illusion that the free market is guiding health care spending decisions, while in fact all coverage requirements and pricing are determined by the federal government. The Obozo plan is one big Marxist camel’s nose under the free market tent.
———————–

Fixed.

ByteMe

March 5th, 2012
6:31 am

The Obozo plan and “insurance exchanges” are Democrat ploys to prolong the big-government

L’il Barry once again ignores historical facts to push his ridiculous viewpoint. That’s ok, we understand you well at this point.

Lil' Barry Bailout (Unexpectedly Revised Downward)

March 5th, 2012
6:35 am

There’s not much “history” on the Obozo plan yet, just the ugly present reality. Your Idiot Klown Obozo lied about the costs and so-called “deficit reduction” his health care power grab were going to produce.

As with so many government programs, the costs are certain to be higher than estimated, and the benefits lower and slower in coming. Meanwhile, Obozo’s statement that “if you like your plan, you can keep your plan” is also proved to be a lie, since the government decides what a health care plan must cover and how much it shall cost. The plans a huge majority of Americans liked no longer exist.

Obozo: Liar. Marxist.

Lil' Barry Bailout (Unexpectedly Revised Downward)

March 5th, 2012
6:40 am

With any luck at all, the Supreme Court will make all this academic. These latest revelations about the early failures of various parts of Obozocare won’t help big government make their case.

jconservative

March 5th, 2012
6:40 am

“…the always-ludicrous notion that he could create a new, $1 trillion-a-decade entitlement and somehow reduce deficits.”

This is also a nice description of the Bush Medicare Part D drug plan.

Ronnie Raygun

March 5th, 2012
6:49 am

If you really want to see something that balloons the National Debt, take a look at Romney or Santorum’s proposed budgets. More tax cuts and borrowing that go us into this budgetary mess in the first place.

DeborahinAthens

March 5th, 2012
7:02 am

After the politicians ripped the plan apart and cobbled a Frankenstein monster that in no way resembles the oroginal health care plan just seems to go over the heads of the brain challenged. We need a single payer healthcare plan with mandatory participation. Even Newt Gingrinch in on of his lucid moments proposed mandatory health insurance. For those of you that can’t understand how insurance works…the bigger the pool of lives that are insured, the lower the insurance costs. That’s why group health care is more affordable. If everyone was forced to buy healthcare insurance, then we would not have such a high percentage of uninsureds showing up at emergency rooms for treatment (which is the most expensive care available) . Eventually the costs of healthcare would fall. The Repugs keep repeating over and over that we have the best healthcare in the world…that is BS and everyone knows it. We have millions of people that cannot get access to life saving surgeries, or proper preventative care. Millions of people lose everything they have because they can’t afford to pay for healthcare and are hit with a disease or are in an accident. The docs and hospitals will take care of you til the health insurance runs out. If you work your whole life and have health insurance, then get Parkinson’s or Alzheimer’s, you couldn’t have even gotten health insurance before Obamacare kicked in. Now you can’t be turned down if you leave work because of an illness.

Road Scholar

March 5th, 2012
7:04 am

A bigger “nightmare for the taxpayer” is electing the current crop of Repub candidates. Based on Newts $2.50 a gal gas, and Romney’s 20% tax cut, and Santorums.. well just everything..these guys are pandering to the masses. Someone posted this the other day:

http://www.youtube.com/watch?v=ZoDlFJtaYvU

We need straight talkers; right now President Obama is my pick.

Becky

March 5th, 2012
7:13 am

The sky is falling, the sky is falling.

ByteMe

March 5th, 2012
7:14 am

There’s not much “history” on the Obozo plan yet, just the ugly present reality. Your Idiot Klown Obozo

Sure there is. Look at Massachusetts, which has basically the same plan in place and has been for several years and it works for them. The Heritage Foundation — that bastion of Conservative thought — decided 15 years ago that the individual mandate was the right way to go. You just hate reality that conflicts with your viewpoint and need to name-call to make yourself feel better. We ALL totally understand you.

Lil' Barry Bailout (Unexpectedly Revised Downward)

March 5th, 2012
7:16 am

Perhaps you’d care to comment on the facts Kyle has presented for your consideration.

Didn’t think so.

Becky

March 5th, 2012
7:17 am

I’m wondering how much Kyle paid out of his pocket for the recent delivery of his child. Perhaps he has insurance through his job? But what if he was laid off and had no insurance. What then Kyle? It is always easy to moan about the cost of universal health care when you are already covered but what would happen if you were laid off? Could you afford $1000/month premiums with no job?

Lil' Barry Bailout (Unexpectedly Revised Downward)

March 5th, 2012
7:19 am

“deficit reduction of $124 billion [versus] a deficit increase of $73 billion”
—————————-

Comment?

Lil' Barry Bailout (Unexpectedly Revised Downward)

March 5th, 2012
7:20 am

We already had health insurance for those who couldn’t afford it. It’s called Medicaid.

Next.

ByteMe

March 5th, 2012
7:23 am

We already had health insurance for those who couldn’t afford it. It’s called Medicaid.

And where do you think the funding is coming from for providing health insurance to lots more uninsured people when the mandates kick in in 2014?

Medicaid.

Next.

Lil' Barry Bailout (Unexpectedly Revised Downward)

March 5th, 2012
7:25 am

That’s just it–the federal government is expanding Medicaid to cover a bunch of folks who aren’t poor. Part of the goal is to get more and more able-bodied working age people addicted to government handouts. These folks should be, and could be, purchasing their own health insurance.

Handout Nation: Obozo’s desired endgame.

Next.

Lil' Barry Bailout (Unexpectedly Revised Downward)

March 5th, 2012
7:26 am

Comment on Kyle’s post, ByteMe. Your deflection is telling.

Road Scholar

March 5th, 2012
7:27 am

ByteMe: “And where do you think …”

Please remember who you are responding to!

ByteMe

March 5th, 2012
7:29 am

Comment on Kyle’s post, ByteMe.

I already have. Several times. You just failed to notice.

Part of the goal is to get more and more able-bodied working age people addicted to government handouts.

Your paranoia is showing. Put some clothes on.

SMH

March 5th, 2012
7:30 am

It’s funny how half the people complaining about Obamacare doesnt even have health insurance. You should be glad someone is trying to help your ignorant a@@! Stop hating him because he is better than the clowns you all have on your ticket.

Lil' Barry Bailout (Unexpectedly Revised Downward)

March 5th, 2012
7:31 am

No, ByteMe, you’ve not commented on Kyle’s post. You’re too busy trying to find other things to distract attention from the ugly truth. You have nothing.

man behind the curtain

March 5th, 2012
7:31 am

Here’s a fact. “Socialist” countries, like France, which earn some of the highest rating for quality and access to healthcare, and cover all of their citizens universally, spend a fraction of what the US spends per capita on healthcare. We all should know by now where we rank according to the WHO criteria.

Lil' Barry Bailout (Unexpectedly Revised Downward)

March 5th, 2012
7:33 am

man behind the curtain: I have nothing, either. Can’t comment on Kyle’s post.
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Fixed.

ByteMe

March 5th, 2012
7:35 am

No, ByteMe, you’ve not commented on Kyle’s post

Of course, I did. First post on the page. You just decided that it was snark instead of a logically thought-out response to Kyle’s cherry-picking of facts to support the outcome he decided two years ago.

man behind the curtain

March 5th, 2012
7:36 am

“deficit reduction of $124 billion [versus] a deficit increase of $73 billion”

Sounds like a pretty good deal if it gets us closedr to universal coverage.

Lil' Barry Bailout (Unexpectedly Revised Downward)

March 5th, 2012
7:36 am

Where’s the deficit reduction Obozo promised?

Lil' Barry Bailout (Unexpectedly Revised Downward)

March 5th, 2012
7:37 am

Try reading the post, man. We’re getting a deficit increase. We were promised a defict reduction.

Oopsies.

man behind the curtain

March 5th, 2012
7:41 am

And the Iraq war was gonna cost us 50 billion.

Oopsies.

ByteMe

March 5th, 2012
7:42 am

We were promised a defict reduction.

And we were promised that the cost of the Iraq war would be borne through the oil that Iraq would pay us with.

It didn’t come true. I’m SHOCKED! :roll:

A $73 billion (over 10 years) deficit is pocket change in a multi-trillion-dollar enterprise as big as the government. It’s a rounding error. We’re DOOOOOOMED!!!!

Road Scholar

March 5th, 2012
7:50 am

And the Iraqis would welcome us with open arms! Where was the love?

Finn McCool

March 5th, 2012
7:52 am

taking the law completely off the books

Never going to happen. Get used to it and learn to work WITH it.

JohnnyReb

March 5th, 2012
7:56 am

I’m sure Obama will fix this with money from his “stash.” Obama Obama

Really?

March 5th, 2012
8:05 am

and the Iraq war will pay for itself with the oil we will get from it–Dubya

oopsies

Becky

March 5th, 2012
8:07 am

Don’t let facts get in the way of your vitriol.

Brosephus

March 5th, 2012
8:10 am

The incentive to which Roy refers is the fact that Obamacare makes it relatively cheaper for employers to dump their health coverage, pay a fine and let employees use federal subsidies to buy health insurance in the federally mandated exchanges.

Sounds like a double giveaway to business, if you ask me. Insurance companies see a boost in profits because of an unlimited and neverending supply of customers. Other businesses see a boost in profits because the “penalty” would obviously be less than the amount used to pay for insurance costs. Seems like the ACA is a backdoor attempt at boosting the economy, and people say Obama’s anti-business. :)

David D

March 5th, 2012
8:16 am

This blog is blatantly untrue.

ByteMe

March 5th, 2012
8:18 am

Seems like the ACA is a backdoor attempt at boosting the economy, and people say Obama’s anti-business

Permanently separating health care responsibilities from business is pro-business. But Republicans were just fine with the status quo, even if the majority of Americans were not. Remember that this November.

JohnnyReb

March 5th, 2012
8:18 am

America has become too soft. With no military draft, young men with no mentor never find their way. Women are too busy proving their independence. Special interest groups have their desires above that of common good. In a different time, an administration who forced through a bill like Obamacare, and now want to trample religious freedom under the lies of denying women access to birth control, would have been met with a swift slap to put them back in line. But now, with half the country on the dole and so many people simply in it for themselves, they stupidly vote for a man who wants to undo our greatness in the name of spreading the wealth.

Becky

March 5th, 2012
8:25 am

jreb-I’ll wager you have a confederate flag on the front of your beater truck.

Edward

March 5th, 2012
8:26 am

I guess Kyle really does admire Newt, he twists and spins lies with almost the same dexterity.

Tall

March 5th, 2012
8:30 am

…” Millions of people lose everything they have because they can’t afford to pay for healthcare and are hit with a disease or are in an accident….

Millions of people? Really? The entire nation will be bankrupted trying to pay for this thing.

carlosgvv

March 5th, 2012
8:34 am

Predatory Capitalism was it’s most greed-ridden height in the late 1800s when laissez-faire(meaning to let alone) was our Government’s policy towards Business. Ever since this ended Business has been trying mightly to bring this back to reality. They finally realized to way to succeed in this was to own the political parties. They now totally own the Republicans. Obamacare will benefit the people and cost Business some of their obsene profits. So, Republicans do what their corporate masters tell them and oppose Obamacare anyway they can. They do this by deceptions, distortions and outright lies. They also count on their “useful idiots” as shown by some of the posts here. Money talks and their greed knows no bounds. If they succeed in owning the Democrats also, our financial lives will be even more miserable than now.

Chip

March 5th, 2012
8:36 am

At this point… anyone who actually believes ObamaCare is about anyone’s health is a self-deluding fool… or at best just hopelessly naive.

Becky

March 5th, 2012
8:40 am

Well Chip-please enlighten us naive souls.

Will

March 5th, 2012
8:42 am

As a well connected republican newspaper writer, I have a question for you.

All the republican politicans running for president faithfully promise to “repeal Obamacare”. I think the thrice divorce, self-confessed adulterer has promised to do this before he leaves the inaugaration podium, right after he stops the limo to buy some of his $2.50 gas on the way back to White House. The key here is that they are “promising” to do this, not promising to “try” to do this.

Here is my question – how will they do this without congressional approval and how will they get the 48-50 democrat senators to cut off debate and allow a vote on this repeal?

When the dust settles from the November election, Congress will be even more partisan, especially in the Senate where 3-5 of the remaining moderates are most likely to lose and 1-2 of what can be called republican moderate seats will also be vacated.

I suspect that the 48-50 democrat senators will be in a permanent “payback” mode when the new republican president comes aboard. Congress will continue to be the “no” branch of government, regardless of who sits in the executive chair next January.

So……do you think the republican politicians running for president do not know this or do you think they do know this and are simply promising to do something that they cannot deliver only to get more votes and hope that their voters will accept their “don’t blame me, I tried” excuse?

Me too.

bluecoat

March 5th, 2012
8:55 am

If You can fight 2 wars.Furnish part D supplement without any money.I do not see why Obama care can’t do the same.You just continue the trickle down trait.Let the next generation/administration do the paying.At some point in time China will stop furnishing the money,the dollar becomes worthless.(Mission Accomplished)

Typical Liberal Blogger

March 5th, 2012
8:57 am

Obamacare good hmmmkay! I don’t have a clue what it will cost me monthly, but it’s good hmmkay! It’s gonna be just as good as Social Security and the post office hmmkay.

jj

March 5th, 2012
9:01 am

I work for a privately held company and our premiums went up $850,000 just to cover the “up to 25 year old” portion of the new health care legislation. More savings brought to you by the government.