Wednesday, October 3, 2012

Fact Check: Slowing Cost Growth

The President attempted to take credit for the slowdown in health costs of late, attributing it to Obamacare.  But estimates of national health spending released by the non-partisan Medicare actuary in July suggest otherwise.  The actuary’s report confirmed that – contrary to the President’s assertions – the private sector is NOT doing fine, and that the economic downturn continues to affect the health care sector.  Specifically, health spending in 2011 rose by a comparatively small amount due to the “lingering effects of the recent recession and modest recovery,” as high unemployment and stagnant wages often result in financially strapped individuals putting off elective surgeries and trips to the doctor.  Just as prior studies from the non-partisan actuary have concluded, spending growth was slower than projected NOT because Obamacare worked, but because the Obama “stimulus” didn’t.