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April 15, 2014

CBO Lowers O’Care Price Tag

As usual, the White House shouts “success”!

Democrats are touting a new Congressional Budget Office report projecting lower than expected ObamaCare insurance rates. Their analysis predicts federal subsidy savings of $165 billion, meaning the total cost now tentatively sits at $1.032 trillion over the next decade. However, The Wall Street Journal explains, “CBO found that individual policies on those marketplaces have narrower networks of doctors and lower reimbursement rates for health-care providers than is typical of employer-sponsored health plans.” In other words, insurers modified their plans to generate lower costs, but you get fewer options and subpar service in return. The Journal adds, “The office said the average size of a federal subsidy for each enrollee getting one in 2015 will be $4,250, rather than $5,330. In 2024, that will increase to $7,170, instead of $8,370, according to the new projections.” Press Secretary Jay Carney praised the report as “welcome news,” adding that CBO’s analysis “demonstrates the Affordable Care Act is working.” Really? We recall that, lawmakers’ budget gimmicks notwithstanding, ObamaCare was originally promised to cost under $1 trillion. This one step “forward” is still several steps backward. And as Mitch McConnell’s deputy chief Don Stewart observes, “Costs and premiums are still going up” over the long run. Meanwhile, the hurricane rages on.

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