Obamacare continues to drive the cost curve up

Quantum Windbag

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May 9, 2010
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If only someone would have pointed this out 4 years ago.

:eusa_whistle:

As public support for ObamaCare slumps into a post-election decline, the Department of Health and Human Services is trying to convince people that they ought to like the law by noting that it’s already given free stuff to a whole bunch of people. An HHS news release this week brags that the “Affordable Care Act extended free preventive care to 71 million Americans with private health insurance” as well as 34 million Medicare Advantage beneficiaries—free benefits the agency says are giving Americans “more value” for their health dollars.
The problem is that the benefits in question are neither “free” nor likely to produce valuable savings. ObamaCare’s rules eliminated individual cost-sharing for a number of preventive services, but, as the administration admitted a few months after the law passed, at the cost of higher insurance premiums on average. It’s like a gym that suddenly makes all the drinks and snacks at its café “free”—but raises the price of membership. It’s not free. You’re just paying in a different way.
It’s not cost-saving as public policy either, despite initial Democratic hopes that it would be. In fact, most evidence shows that it increases health spending. That’s because eliminating cost-sharing increases utilization of preventive services; when there’s no immediate price to pay for using a service, people tend to use more of it. And as the Congressional Budget Office reported back in 2009, “the evidence suggests that for most preventive services, expanded utilization leads to higher, not lower, medical spending overall." In general, the CBO noted, researchers have found that “the added costs of widespread use of preventive services tend to exceed the savings from averted illness.”

ObamaCare's Free Preventive Services Aren't Free - Hit & Run : Reason.com
 
If only someone would have pointed this out 4 years ago.

:eusa_whistle:

As public support for ObamaCare slumps into a post-election decline, the Department of Health and Human Services is trying to convince people that they ought to like the law by noting that it’s already given free stuff to a whole bunch of people. An HHS news release this week brags that the “Affordable Care Act extended free preventive care to 71 million Americans with private health insurance” as well as 34 million Medicare Advantage beneficiaries—free benefits the agency says are giving Americans “more value” for their health dollars.
The problem is that the benefits in question are neither “free” nor likely to produce valuable savings. ObamaCare’s rules eliminated individual cost-sharing for a number of preventive services, but, as the administration admitted a few months after the law passed, at the cost of higher insurance premiums on average. It’s like a gym that suddenly makes all the drinks and snacks at its café “free”—but raises the price of membership. It’s not free. You’re just paying in a different way.
It’s not cost-saving as public policy either, despite initial Democratic hopes that it would be. In fact, most evidence shows that it increases health spending. That’s because eliminating cost-sharing increases utilization of preventive services; when there’s no immediate price to pay for using a service, people tend to use more of it. And as the Congressional Budget Office reported back in 2009, “the evidence suggests that for most preventive services, expanded utilization leads to higher, not lower, medical spending overall." In general, the CBO noted, researchers have found that “the added costs of widespread use of preventive services tend to exceed the savings from averted illness.”

ObamaCare's Free Preventive Services Aren't Free - Hit & Run : Reason.com

Prevention is way cheaper than the cure. The HMO's are the ones who are reaping the benefits. This is not at all surprising since Obamacare is nothing more than the Republican alternative in Hilarycare back in the 1990's that was subsequently enacted as Romneycare.
 
If only someone would have pointed this out 4 years ago.

:eusa_whistle:

As public support for ObamaCare slumps into a post-election decline, the Department of Health and Human Services is trying to convince people that they ought to like the law by noting that it’s already given free stuff to a whole bunch of people. An HHS news release this week brags that the “Affordable Care Act extended free preventive care to 71 million Americans with private health insurance” as well as 34 million Medicare Advantage beneficiaries—free benefits the agency says are giving Americans “more value” for their health dollars.
The problem is that the benefits in question are neither “free” nor likely to produce valuable savings. ObamaCare’s rules eliminated individual cost-sharing for a number of preventive services, but, as the administration admitted a few months after the law passed, at the cost of higher insurance premiums on average. It’s like a gym that suddenly makes all the drinks and snacks at its café “free”—but raises the price of membership. It’s not free. You’re just paying in a different way.
It’s not cost-saving as public policy either, despite initial Democratic hopes that it would be. In fact, most evidence shows that it increases health spending. That’s because eliminating cost-sharing increases utilization of preventive services; when there’s no immediate price to pay for using a service, people tend to use more of it. And as the Congressional Budget Office reported back in 2009, “the evidence suggests that for most preventive services, expanded utilization leads to higher, not lower, medical spending overall." In general, the CBO noted, researchers have found that “the added costs of widespread use of preventive services tend to exceed the savings from averted illness.”
ObamaCare's Free Preventive Services Aren't Free - Hit & Run : Reason.com

Prevention is way cheaper than the cure. The HMO's are the ones who are reaping the benefits. This is not at all surprising since Obamacare is nothing more than the Republican alternative in Hilarycare back in the 1990's that was subsequently enacted as Romneycare.

Not if more people use it than need it.
 

Prevention is way cheaper than the cure. The HMO's are the ones who are reaping the benefits. This is not at all surprising since Obamacare is nothing more than the Republican alternative in Hilarycare back in the 1990's that was subsequently enacted as Romneycare.

Not if more people use it than need it.

Do you only change the oil in your car when it needs to be changed or when it is recommended that it be changed? Which is better for the health and longevity of your vehicle?
 
You dont go to war and then make your weapons. You dont get sick then start taking care of yourself.
 
It isn't that ACA is driving up prices, (they've been rising faster than inflation for 40 years) it's that ACA does nothing to prevent prices from raising.
 

Prevention is way cheaper than the cure. The HMO's are the ones who are reaping the benefits. This is not at all surprising since Obamacare is nothing more than the Republican alternative in Hilarycare back in the 1990's that was subsequently enacted as Romneycare.

Not if more people use it than need it.

What?
 
It isn't that ACA is driving up prices, (they've been rising faster than inflation for 40 years) it's that ACA does nothing to prevent prices from raising.

Mostly agree. Though it does "double-down" on many of the most pressing drivers of health care inflation. I have a hard time seeing how the token efforts at cost containment (which are mostly just targeting overall costs - specifically costs to government - and not attending to rising prices) add up to much. Certainly not enough to counter the inflationary aspects of PPACA.
 
DK,

I don't have the numbers yet to know if ACA does anything to drive down the agreggate cost of HC.

It MIGHT slightly (there might be some economies of scale or admin cost efficiences stemming from it) but it ALONE has no mechanisms in place that I am aware of to keep down the cost of HC.

Basically the cost of HC is still market driven and the market is driving cost up just as it has been for your and my entire lives.
 
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Prevention is way cheaper than the cure. The HMO's are the ones who are reaping the benefits. This is not at all surprising since Obamacare is nothing more than the Republican alternative in Hilarycare back in the 1990's that was subsequently enacted as Romneycare.

Not if more people use it than need it.

Do you only change the oil in your car when it needs to be changed or when it is recommended that it be changed? Which is better for the health and longevity of your vehicle?

Talk to the CBO, that group that you loved when they said that Obamacare would cost less than $1 trillion, they are the ones that argue that it will raise the cost.
 
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Not if more people use it than need it.

Do you only change the oil in your car when it needs to be changed or when it is recommended that it be changed? Which is better for the health and longevity of your vehicle?

Talk to the CBO, that group that you loved when they said that Obamacare would cost less than $1 trillion, they are the ones that argue that it will raise the cost.

Since you raised this topic the onus is on you to provide the link where the CBO is saying that "more people use it than need it" and that this will raise the cost.
 
It isn't that ACA is driving up prices, (they've been rising faster than inflation for 40 years) it's that ACA does nothing to prevent prices from raising.

Keep telling yourself that.

I will until I find evidence to refute it.

If you have any, and I think it's credible, I'll be only to happy to change my mind and laud you for helping me to learn something.

Fair?
 
If only someone would have pointed this out 4 years ago.

:eusa_whistle:

As public support for ObamaCare slumps into a post-election decline, the Department of Health and Human Services is trying to convince people that they ought to like the law by noting that it’s already given free stuff to a whole bunch of people. An HHS news release this week brags that the “Affordable Care Act extended free preventive care to 71 million Americans with private health insurance” as well as 34 million Medicare Advantage beneficiaries—free benefits the agency says are giving Americans “more value” for their health dollars.
The problem is that the benefits in question are neither “free” nor likely to produce valuable savings. ObamaCare’s rules eliminated individual cost-sharing for a number of preventive services, but, as the administration admitted a few months after the law passed, at the cost of higher insurance premiums on average. It’s like a gym that suddenly makes all the drinks and snacks at its café “free”—but raises the price of membership. It’s not free. You’re just paying in a different way.
It’s not cost-saving as public policy either, despite initial Democratic hopes that it would be. In fact, most evidence shows that it increases health spending. That’s because eliminating cost-sharing increases utilization of preventive services; when there’s no immediate price to pay for using a service, people tend to use more of it. And as the Congressional Budget Office reported back in 2009, “the evidence suggests that for most preventive services, expanded utilization leads to higher, not lower, medical spending overall." In general, the CBO noted, researchers have found that “the added costs of widespread use of preventive services tend to exceed the savings from averted illness.”

ObamaCare's Free Preventive Services Aren't Free - Hit & Run : Reason.com


I got news for ya, plenty of Republicans pointed this out. They were proved to be right about the cost going up for all of us.
 
It isn't that ACA is driving up prices, (they've been rising faster than inflation for 40 years) it's that ACA does nothing to prevent prices from raising.

On the other hand, health price inflation hasn't been this low since the last time the cost curve briefly bent (the late '90s).
Health care price inflation in January 2013, at 1.5% year-over-year, was two tenths below December’s reading and the lowest level since 1.3% measured in December 1997. The 12-month moving average at 2.0% in January 2013 is the lowest since 1.9% recorded in December 1998.
 

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