The Congressional Budget Office (CBO) has revised its previous estimate of Obamacare and many of the new assessments do not agree with the promises made by the Obama administration. The Obamacare bill was rushed through Congress and, as Nancy Pelosi arrogantly stated, we are only able to see what is in it now, after its passage.
According to the CBO, the overall net cost of Obamacare has been reduced by $48 billion through the year 2021. It is a given that this estimated cost reduction will be repeated by the mainstream media as proof of Obamacare success. However, the CBO also said that the overall federal budget deficit will increase by $92 billion for the year 2012. That deficit increase is salt in our current economic wound.
Much of the long-term cost reduction comes from projected Obamacare penalties and higher taxable income due to increased employee compensation. The increased compensation is due to employers dropping health insurance coverage in favor of higher pay, something that was predicted but denied by the administration. It is turning out that you will not be able to keep the insurance that you have as Obama promised.
The CBO also lowered by 4 million its estimate of people obtaining insurance from employers or Obamacare insurance exchanges. Medicaid costs will increase as most of those people will end up needing Medicaid coverage. This will, of course, curtail any Medicaid cost reductions that were on a few wish lists.
Many Obamacare provisions do not go into effect until 2014, but the considerable downside is becoming increasingly evident. Also evident is the fact that many of Obama’s promises were baseless and made in haste in order to get this bill rammed through Congress.
Many of the ill effects coming to fruition were predicted but ignored by Obama and the partisan mainstream media. They are fast becoming a reality and can no longer be ignored. They should be remembered by all in November.
David J. Hentosh