New Health Care Law – Costs are Going Up and Up and Up!

The ink is barely dry on the new health care law and the Washington Examiner reports on their website that cost estimates are increasing … and not just a little.  According to the article, the cost impact on Virginia will be $1.5B which is almost $400M more than the original cost estimate.  And, that’s just one State!  This added to the recent Congressional Budget Office’s report that there could be $115B more money needed to cover such things as Federal agency administrative costs and community health centers.  Does this surprise anyone?  Let’s talk more about the costs of the new health care law now.

Back in March, I predicted in my blog that the true costs of the health care bill might be 3x or 4x higher than the current estimates.  This was based on the fact that initial Medicaid cost projections were only about 25% of their actual costs.  Well, gradually as people are diving into the new health care law and analyzing its impacts, cost projections are skyrocketing.

Virginia’s higher cost projections, now up to $1.5B, and the CBO’s higher cost projections, suggesting another $115B might be needed to cover important expenses, are both just the tip of the iceberg.  In a recent editorial, The Washington Times suggests that another factor will also add to the costs of health care.  In their view, the elimination of pre-existing condition requirements means more uninsured people will wait until they are sick to pay for health care insurance.  How much will this factor cost?

Also, according to The Heritage Foundation, the Centers for Medicare and Medicaid Services (CMS)  report that under the new health care law, costs will increase $311B.

It’s not surprising that a new government entitlement program will cost more than its original estimate.  But, this takeover of about 18% of the American Economy looks to be particularly expensive.  While some people seem to think that the health care law will cost $1 Trillion, I still believe $3 – $4 Trillion is a more realistic estimate.  Recall Cato Institute’s earlier cost estimate … more than $6 Trillion.

Regardless of how high the cost of the new health care law gets, guess who will ultimately pick up the tab?

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