I have written many posts about the fact that Obamacare will do nothing to lower health spending in this country as Obama claims it will. But, I have received several comments from readers saying that I’ve only used studies from insurance companies in support of my posts. So, let’s use a government study.
On November 13, the Office of the Actuary for Medicare and Medicaid (OACT) issued a report on the effects of the House version of Obamacare. Beginning at page 9 of the OACT memorandum we learn that other than the proposed $500 billion slash to Medicare,
For fiscal years 2010 through 2019 we estimate a relatively small reduction in non-Medicare health care Federal expenditures of $2.1 billion…
What a great return…we spend $900 billion and save a whopping $2.1 billion.
And, where will those savings come from you ask. Preventative medicine, right? Well, no.
While it is possible that savings can be achieved for many people by diagnosing diseases in early stages and promoting lifestyle and behavioral changes that reduce the risk for serious and costly illnesses, additional costs are incurred as a result of increased screenings, preventative care and extended years of life.
OK, so that doesn’t work. But, how about comparative effectiveness you ask? (That’s the “one size fits all approach to medical care. Someone, not you or your doctor, decides what is “best” for you, and that is the treatment you get, like it or not.) Here is what the OACT says (at page 10):
Small savings [i.e., the $2.1 billion] could be achieved through the wide availability of non-binding research, while substantial savings could be generated by a comparative effectiveness board with authority over payment and coverage.
I think that’s the part where the government mandates that women under 50 don’t need a mammogram. Or decides, why waste money on people over 70? Or, for that matter, why waste money on a premature baby?
Under Obamacare, we will spend somewhere around $130 billion dollars per year beginning in 2013 (when Obamacare takes effect), and save about $210 million per year, exclusive of the Draconian cuts to Medicare. How long do you think it will be before we have that “comparative effectiveness board with authority over payment and coverage”?