I am an Ultra-Conservative, Alpha-Male, True Authentic Leader, Type "C" Personality, who is very active in my community; whether it is donating time, clothes or money for Project Concern or going to Common Council meetings and voicing my opinions. As a blogger, I intend to provide a different viewpoint "The way I see it!" on various world, national and local issues with a few helpful tips & tidbits sprinkled in.
Recession, Not Obamacare, To Thank for Lower 2013 Health Costs
Health care costs have indeed decreased in the past several years. After several years of moderate income growth and stagnant insurance coverage, actuaries at the Centers for Medicare & Medicaid Services, or CMS, estimated that private health insurance spending growth held constant at 3.8 percent in both 2011 and 2012, growth equivalent to half of pre-recession levels. In 2013, growth is also projected to come in at 3.8 percent. But there is no sign that the Affordable Care Act was responsible for drop in health care-related costs.
Rather, the economic recession has been cited as the culprit, which seems reasonable given that costs are expected to jump 6.1 percent in 2014, the year the law’s individual insurance mandate is implemented. A report published in the journal Health Affairs, CMS actuaries provided evidence that the slowdown in spending is not related to Obamacare. “It certainly adds one more piece to the puzzle for those who say ’hey wait a second, this isn’t the final word on how to reform American health care,’” American Enterprise Institute policy analyst James Capretta, who worked in the administration of former President George W. Bush, said in an interview with Bloomberg.
“Improving economic conditions, combined with the coverage expansions in the Affordable Care Act and the aging of the population, drive faster projected growth in health spending in 2014 and beyond,” stated the report in its opening paragraph. In just the first year the exchanges are open, national health care spending is projected to grow 1.6 percentage points faster than would be expected in the absence of Obamacare.