Back in 2009, when President Obama took advantage of Democrat control of the House and Senate and pushed through so-called healthcare reform, he assured the American people that the plan would be paid for and wouldn’t add to future deficits. There were many people, especially those like myself who are familiar with health care costs and how health insurance works, were quite skeptical. The plan did nothing to address rising healthcare costs. Instead, it was nothing more than the opportunity Democrats had been waiting for get health insurers to change their rules for coverage and to get government-subsidized health insurance in the hands of Americans. But to quote a popular line from “Thomas and Friends,” one of my toddler’s favorite shows, “then there was trouble.”
First, the administration can’t even get their act together regarding the mandate in the plan. The White House said it isn’t a tax, but someone from within the administration testified on Capital Hill that it is. Then, the CLASS act, which was a plan to tackle long term care, came under fire. And for good reason–one of the accounting gimmicks used to make CLASS work was to make people pay premiums for the plan for years before the plan actually came into play. Congress voted to remove it from Obamacare.
But the ultimate slight-of-hand used in getting the bill passed was to convince people the reform act would not add to future deficits, and in turn, to the national debt. President Obama assured us that the plan would cost about $900 billion, and that the cost would be offset by money taken from Medicare savings and from revenue grabbed from insurers, medical device makers, etc. Like Theo Huxtable in the episode of “The Cosby Show” when Bill tried to tell him it’s expensive to live on his own, President Obama deflected criticism by saying “noooo problem!” What wasn’t apparent to average americans is that the cost projection used included years during which the plan would barely be implemented.
Now, the CBO has released projections on how much Obamacare will actually cost over the next 10 years, when fully in place. The cost? $1.76 trillion over the next decade. And that number is expected to increase to $2 trillion next year.
On the one hand, the CBO also predicts that the government will increase revenue from taxes and penalties over those years so that *may* offset the additional costs. But most people realize that while cost estimates typically run lower than actual, revenue estimates also tend to run lower, because as new taxes kick in, people tend to change their habits, which leads to lower revenues taken in by the government. People will find ways to avoid paying additional taxes.
What we have here is another government implented program that is going to run over budget and need bailing out at some point in the future. Maybe around that time people will finally realize that government can’t be trusted to be good stewards of our money.
Obamacare to cost $1.76 trillion over 10 years