ObamaCare: The Savings That Aren't

Welcome to ObamaCare Monday. Today, all articles (barring important breaking news) will focus in one way or another on ObamaCare.

Last week, HHS director Kathleen Sebelius released a report showing that ObamCare is "already working," and that health insurance premiums will be reduced by 2014. For those that care to read her report, you may find it here:
http://www.healthcare.gov/center/reports/premiums01282011a.pdf

Let's look at the contents of this report. HHS claims that in 2014, health insurance premiums will be lower. This is incorrect. Premiums will be just as high as today, if not higher. But because the subsidies will be in effect at that time, specific families will pay less. Make no mistake, the full premium will still be paid, only the lion's share will be paid by all of us NOT receiving subsidies. That's right, the rest will be paid with our tax dollars.

It's interesting to note that the "reduced costs" tend to match the subsidy amounts that will be offered by our government.

HHS Directer Sebelius can't seem to distinguish between health insurance premium rate reductions and government subsidies... and that's a pretty large failing.


The problem here is that premiums will NOT become more affordable, costs will NOT decrease. The only thing that will change is who picks up the tab. This is NOT a reduction in health insurance premiums, not by any stretch of the imagination. But the government is so desperate to show some good effects that they're willing to lie to us all in order to make us believe the flash behind the hype.

If anything, this report indicates that government spending on health care will INCREASE in 2014 as they begin paying health insurance subsidies. If some consumers will be paying less for insurance, due entirely to government subsidies, government itself will have to spend quite a bit more in order to make things work.

Ladies and gentlemen, the cost of insurance is based in large part upon how much that health care COSTS. Keep in mind that there is a real-world cost for every medical test and procedure, and the cost of insurance reflects that real-world cost. Subsidizing health insurance premiums does absolutely NOTHING to reduce the cost of receiving those health care services.

So take this "report" with a rather large grain of salt, and understand the reality that ObamaCare will unleash upon us all.