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Health Insurance Law Will Increase Costs

Image: anolobb under CC 3.0

Contrary to some initial estimates, a Medicare actuary predicts that health insurance reform will actually end up increasing the cost of health care in the United States!

On the positive side, there are measures to control the cost of Medicare by cutting provider payments and a tax on employer-sponsored high-cost health insurance plans that encourages more affordable options. Unfortunately, those are outweighed by the expansion of coverage and accompanying subsidies. According to Richard S. Foster, spending will increase by 0.9% ($311 billion) by 2019 than it otherwise would have without healthcare reform.

Some may believe that the relatively small increase is worth it in order to insure up to 30 more Americans, especially for progressives who consider affordable health insurance a human right. However, the findings go against the Obama administration’s promises that costs would eventually decrease.

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