Obamacare Will Increase Health Spending By $7,450 For A Typical Family of Four.

Obamacare Will Increase Health Spending By $7,450 For A Typical Family of Four

Chris ConoverChris Conover, Contributor
WASHINGTON, DC - MARCH 26:  Ron Kirby holds a ...Ron Kirby holds a sign while marching in protest of the Patient Protection and Affordable Care Act in front of the U.S. Supreme Court on March 26, 2012 in Washington, DC. (Image credit: Getty Images North America via @daylife)

It was one of candidate Obama’s most vivid and concrete campaign promises. Forget about high minded (some might say high sounding) but gauzy promises of hope and change. This candidate solemnly pledged on June 5, 2008: “In an Obama administration, we’ll lower premiums by up to $2,500 for a typical family per year….. We’ll do it by the end of my first term as President of the United States.”  Unfortunately, the experts working for Medicare’s actuary have (yet again[1]) reported that in its first 10 years, Obamacare will boost health spending by “roughly $621 billion” above the amounts Americans would have spent without this misguided law.

What this means for a typical family of four

$621 billion is a pretty eye-glazing number. Most readers will find it easier to think about how this number translates to a typical American family—the very family candidate Obama promised would see $2,500 in annual savings as far as the eye could see. So I have taken the latest year-by-year projections, divided by the projected population and multiplied the result by 4.


Simplistic? Maybe, but so too was the President’s campaign promise. And this approach allows us to see just how badly that promise fell short of the mark. Between 2014 and 2022, the increase in national health spending (which the Medicare actuaries specifically attribute to the law) amounts to $7,450 per family of 4.

Let us hope this family hasn’t already spent or borrowed the $22,500 in savings they might have expected over this same period had they taken candidate Obama’s promise at face value. In truth, no well-informed American ever should have believed this absurd promise. At the time, Factcheck.org charitably deemed this claim as “overly optimistic, misleading and, to some extent, contradicted by one of his own advisers.”  The Washington Post less charitably awarded it Two Pinocchios (“Significant omissions or exaggerations”). Yet rather than learn from his mistakes, President Obama on July 16, 2012 essentially doubled-down on his promise, assuring small business owners “your premiums will go down.” He made this assertion notwithstanding the fact that in three separate reports between April 2010 and June 2012, the Medicare actuaries had demonstrated that the ACA would increase health spending. To its credit, the Washington Post dutifully awarded the 2012 claim Three Pinocchios (“Significant factual error and/or obvious contradictions.”)

The past is not prologue: The burden increases ten-fold in 2014

As it turns out, the average family of 4 has only had to face a relatively modest burden from Obamacare over the past four years—a little over $125. Unfortunately, this year’s average burden ($66) will be 10 times as large in 2014 when Obamacare kicks in for earnest. And it will rise for two years after that, after which it hit a steady-state level of just under $800 a year. Of course, all these figures are in nominal dollars. In terms of today’s purchasing power, this annual amount will rise steadily.

But what happened to the spending slowdown?

Some readers may recall that a few months ago, there were widespread reports of a slow-down in health spending. Not surprisingly, the White House has been quick to claim credit for the slowdown in health spending documented in the health spending projections report, arguing that it “is good for families, jobs and the budget.”

On this blog, Avik Roy pointed out that a) since passage of Obamacare, U.S. health spending actually had risen faster than in OECD countries, whereas prior to the law, the opposite was true. Moreover, to the degree that U.S. health spending was slowing down relative to its own recent past, greater cost-sharing was likely to be the principal explanation. Medicare’s actuarial experts confirm that the lion’s share of the slowdown in health spending could be chalked up to slow growth in the economy and greater cost-sharing. As AEI scholar Jim Capretta pithily puts it:

An important takeaway from these new projections is that the CMS Office of the Actuary finds no evidence to link the 2010 health care law to the recent slowdown in health care cost escalation. Indeed, the authors of the projections make it clear that the slowdown is not out of line with the historical link between health spending growth and economic conditions (emphasis added).

Obamacare poison

In the interests of fair and honest reporting, perhaps it is time the mainstream media begin using “Affordable” Care Act whenever reference is made to this terribly misguided law. Anyone obviously is welcome to quarrel with the Medicare actuary about their numbers. I myself am hard-put to challenge their central conclusion: Obamacare will not save Americans one penny now or in the future. Perhaps the next time voters encounter a politician making such grandiose claims, they will learn to watch their wallet. Until then, let’s spare strapped Americans from having to find $657 in spare change between their couch cushions next year. Let’s delay this law for a year so that policymakers have time to fix the poorly designed Rube Goldberg device known as Obamacare. For a nation with the most complicated and expensive health system on the planet, making it even more complicated and even more expensive never was a good idea.


[1] The Medicare actuary first issued a report carefully estimating the cost impact of Obamacare on April 22, 2010. Its annual national health expenditure projections reports for 2010, 2011 and 2012 all have contained tabulations showing that Obamacare will increase health spending over the next 10 years compared to a counterfactual scenario in which the law was never enacted.

One thought on “Obamacare Will Increase Health Spending By $7,450 For A Typical Family of Four.


    ” FACTSHEET: Obamacare Will Kill You · How Obama Got The Mustache
    October 24, 2013 • 10:58AM

    The United States was suffering from a crisis in health care when President Barack Obama came into office. As a result of the deindustrialization of the U.S. economy, the privatization of health care into profit-making ventures, and deregulation, both the health care system and the health of the American population was rapidly deteriorating.
    Obama’s health care program, however, has made the situation much worse. If allowed to continue, it will turn the U.S. government into the enforcer of a worse-than-Hitler genocide machine.
    Download PDF


    1) ” TONY BLAIR T4 HEALTH CARE. In Britain, on April 1, 1999, the first initiative was taken by the Tony Blair government (1997-2007) in the name of health care “reform,” to institute an updated version of the Hitler T4 program: the National Institute for Health and Clinical Excellence (NICE) was formed, to dictate what treatments would, and would not, be given to designated groups of patients in the British National Health Services (NHS), which had served the nation since the 1940s.
    Blair’s health adviser to set up NICE, Simon Stevens, then moved to takedown the NHS system, by privatizing key functions, in particular through the private insurer UnitedHealth Group UK, which Stevens joined.
    The record shows how the death rate has climbed for whole classes of Britons, especially the elderly and cancer patients, as a result of both NICE barring treatments, and the NHS being dismantled. For example, as of 10 years after NICE went into effect, only 40 to 48% of British men diagnosed with cancer survived, and 48 to 54% of British women; in stark contrast to Sweden, for example, where 60% of men and 61% of women survived after a cancer diagnosis.
    A particular program to speed up death was put into effect called the Liverpool Care Pathway for the Dying Patient (LCP). According to extensive exposes in the British press, over the 2000s, participating NHS hospitals were offered financial inducements to put patients deemed as at the end-of-life, on the LPC list, under which all treatment is discontinued, and even water and hygiene removed. The LCP started originally for cancer patients in Liverpool in the 1990s, with royal patronage; by 2012, it involved 178 NHS hospitals throughout Britain, and involved patients with any illness. On average, 130,000 persons a year were put under LCP, under the claim of saving medical resources, which as of 2012, had rewarded hospitals with at least $40 millions. An estimated 60,000 on LPC died yearly, without having given their consent to discontinue care. After storms of protest, the U.K. government in July 2013, ordered the LCP to be phased out over the next 12 months. ” http://larouchepac.com/files/20131022-obamacare-health-factsheet_0.pdf

    THE FAMILY OF TONY BLAIR HAS FRIENDSHIPS WITH THE FAMILY OF JACOB ROTHSCHILD. https://en.wikipedia.org/wiki/Jacob_Rothschild,_4th_Baron_Rothschild
    “Tony Blair. Illegitimate Son Of Jacob Rothschild….Evidence”
    TONY BLAIR IS ALSO A FRIEND OF EVELYN DE ROTHSCHILD AND OF HIS WIFE . https://en.wikipedia.org/wiki/Evelyn_Robert_de_Rothschild
    http://landdestroyer.blogspot.de/2012/05/protester-calls-tony-blair-war-criminal.html http://www.thisismoney.co.uk/money/celebritymoney/article-2167655/Former-PM-Tony-Blair-alleged-earned-80million-2007.html

    2) ” Sir Donald M. Berwick, knighted by Queen Elizabeth, for his work on NICE and “reforming” the British National Health Service, to cut out excessive lives, was given a recess appointment by Obama on July 7, 2010, to be Administrator of the Centers for Medicare and Medicaid Services (CMS). As such, he was responsible for initiating T4 policies in programs affecting 49 million older Americans in Medicare, and 48 million poor, disabled and dependent, in Medicaid. He stayed in office as long as his recess-appointment tenure would allow, leaving in December 2011, to avoid the scrutiny that would ensue in the Senate from a proper nomination to CMS head.
    While in office, he moved to strike certain cancer drugs from approved Medicare reimbursement; to set up ways to financial penalize hospitals for “over-treating” patients; and limit physicians by financial penalties and pushing top-down “evidence-based” medical practice dictates. He was followed in office by Marilyn Tavenner, a technocrat for Obamacare, with a pedigree as top executive at HCA, the mega for-profit hospital chain, benefitting from the takedown of the traditional community hospital system. ” http://larouchepac.com/files/20131022-obamacare-health-factsheet_0.pdf

    ” Lord Jacob Rothschild, the behind-the-scenes controller of the Inter-Alpha Group, was a partner at Rothschild at the time he set up the Inter-Alpha Group in 1971, using its resources and then leaving in 1980 to continue his special mission, which includes advising the genocidal British Crown and managing the funds of Prince Charles’ Duchy of Cornwall, to finance his kooky, “green” schemes.”
    ” Prince Charles already played polo with Evelyn de Rothschild in his student years and later set up the Interfaith consultations with him. ”
    Evelyn de Rothschild ” In 1989, he was knighted by Queen Elizabeth II,[2] for whom he serves as a financial adviser. ” https://en.wikipedia.org/wiki/Evelyn_Robert_de_Rothschild
    But the Royal Bank of Scotland, that is a bank controlled by the British Royal Family, is also connected with the Edmond De Rothschild.
    http://www.mirror.co.uk/news/uk-news/prince-charles-dumps-rbs-boss-372885 http://www.linkedin.com/pub/laura-scolan/a/ba1/7b7 http://www.linkedin.com/pub/mark-phillips/4/5b9/772
    ( https://en.wikipedia.org/wiki/Ariane_de_Rothschild ) http://www.lejdd.fr/Economie/Images/Les-plus-grosses-fortunes-de-France/Benjamin-de-Rothschild-206941
    THE SAME obama IS A PUPPET OF THE BRITISH ROYAL FAMILY. http://www.bbc.co.uk/news/uk-13489879

    3) ” It is no surprise that the winners in the Obamacare game are from Wall Street’s big insurers. This is inherent in the fascist (corporatist) nature of the plan, which unites the health insurance cartels with the government, in a drive to cut back health care for the “useless eaters” in the population.
    Robert Lenzner of Forbes reported Oct. 1 that the “value of the S&P health insurance index gained 43%” this year alone. CIGNA is up 63%; Wellpoint 47%; and United Healthcare 28%. Since the passage of Obamacare in 2010, the stock values of these big firms have risen 200-300%!
    United Healthcare, the largest insurer, with about 70 million insured, reported last summer that they had a particularly strong past year, with net income of $5.1 billion, up by 11% from the previous year; similarly for the others — even before the bonanza to result from the corporatist plan to force every American to buy their inflated products, beginning on October 1.
    United Healthcare, it should be recalled, has as a top executive Simon Stevens, who was Tony Blair’s health policy advisor and the architect of NICE (National Institute for Health and Clinical Excellence) in 1999, the “reform” of the British National Health Service which imposed triage and genocide on the British people through selective denial of cancer drugs, surgeries, kidney dialysis, and other treatments. This was the model for the IPAB (Independent Payment Advisory Board), which is now the law of the land under Obamacare. Genocide can be profitable. ” http://larouchepac.com/node/28409
    ( Obamacare Genocide in Action: What is Already Underway http://larouchepac.com/node/28608 )

    “UnitedHealth Group Incorporated is a diversified managed health care company headquartered in Minnetonka, Minnesota, U.S. It is No. 17 on Fortune magazines top 500 companies in the United States.[5] UnitedHealth Group offers a spectrum of products and services through two operating businesses: UnitedHealthcare and Optum. Through its family of subsidiaries and divisions, UnitedHealth Group serves approximately 70 million individuals nationwide. ” https://en.wikipedia.org/wiki/UnitedHealth_Group
    ” Abigail Pierrepont (Abby) Johnson[4] (born December 19, 1961) is an American businesswoman. Johnson is President of Fidelity Investments Personal and Workplace Investing. Fidelity was founded by her grandfather Edward C. Johnson II and her father Edward C. (Ned) Johnson III is its current CEO. As of March 2013 The Johnson family owns a 49% stake in the company.[3]
    She had a brief stint as a consultant at Booz Allen & Hamilton from 1985–86, completed an MBA at Harvard, and joined Fidelity Investments ”
    Arthur Johnson, an Independent Trustee of Fidelity, is also a director of Booz Allen & Hamilton. http://www.boozallen.com/media-center/press-releases/48399320/49502902
    BOOZ ALLEN & HAMILTON IS LINKED WITH CARLYLE, BLACKSTONE AND DEUTSCHE BANK. http://transmissionsmedia.com/the-911-illusion-part-ii-deutsche-bank-blackstone/
    “In 2008 Carlyle Group bought a majority stake in Booz Allen for $2.54 billion.”
    ” Carlyle is the 11th largest defense contractor in the US. It is 20%-owned by Mellon Bank (http://www.dkosopedia.com/wiki/Mellon_family) and is controlled by the powerful Blackstone Group (seeOverthrow of the American Republic), which dined cheaply on the carcasses of looted S&L’s at auctions held by Bush Sr.’s Resolution Trust Corporation. ”
    http://www.almartinraw.com/uri1.html http://transmissionsmedia.com/the-911-illusion-part-ii-deutsche-bank-blackstone/
    ” Henry Kissinger’s good friend Lord JACOB ROTHSCHILD sat on Bioport owner Blackstone’s International Advisory Board. (See Corexit Linked to the Blackstone Group and Lord Jacob Rothschild) ”
    http://transmissionsmedia.com/the-911-illusion-part-ii-deutsche-bank-blackstone/ http://beforeitsnews.com/gulf-oil-spill/2010/06/corexit-linked-to-the-blackstone-group-and-lord-jacob-rothschild-76363.html
    ” Blackstone was founded in 1985 as a mergers and acquisitions boutique by Peter G. Peterson and Stephen A. Schwarzman, who had previously worked together at Lehman Brothers, Kuhn, Loeb Inc. ”
    Peter G. Peterson ” is founding Chairman of the Peterson Institute for International Economics ” https://en.wikipedia.org/wiki/Peter_George_Peterson http://larouchepac.com/node/28610
    Lynn Forester de Rothschild, the wife of EVELYN DE ROTHSCHILD, is a director of the Peterson Institute for International Economics. http://www.petersoninstitute.org/institute/board.cfm
    Blackstone is also related with the LCF EDMOND DE ROTHSCHILD, for example, through the person of Daniel Costa Lindo that is a M&A Analyst at Blackstone and was Private Equity Analyst at LCF Edmond de Rothschild. http://www.linkedin.com/pub/daniel-costa-lindo/32/255/543 https://en.wikipedia.org/wiki/Benjamin_de_Rothschild https://en.wikipedia.org/wiki/Ariane_de_Rothschild
    http://finance.yahoo.com/q/mh?s=CI http://finance.yahoo.com/q/mh?s=WLP

    ” Pennsylvania Doctor Releases Statement Against “Murderous Obamacare”
    October 24, 2013 • 11:57AM

    Statement released by Mark Shelley, M.D., D.A.B.F.P. 1 Willow St., Port Allegany PA
    For more information: (267)218-5655 stevekomm@gmail.com


    As a physician and an American, I feel compelled at this time of peril, to address the changes that I see in the process of the actual delivery of health care to the American people.
    From my perspective as a general practitioner of medicine, and from my concern as a citizen for my fellow man, I must speak out to explain the dangers that I see in the implementation of American health care today, as exemplified by Obamacare.
    What I see being done today is chillingly consistent with the findings and warnings of Dr. Leo Alexander, the chief consultant to the U.S. prosecutors at the Nuremberg War crimes Tribunal after World War II. In his famous article entitled, “Medical Science Under Dictatorship,” that was published in the New England Journal of Medicine on July 14, 1949, Dr. Alexander made clear what happens to medicine when it, “becomes subordinated to the guiding philosophy of a dictatorship.”

    That dictatorship today is money.

    Medicine and economics are joined at the hip. But, in real economics, economic considerations, and monetary considerations are not identical. The problem today, is that monetary considerations take priority over all else. The fact that health care is considered synonymous with acquisition of health insurance today, is indicative of this monetary/health care problem.
    Nor is this a government versus private sector problem. Nor is it a Republican versus Democratic Party question. We just suffered a 16-day government shutdown, that almost precipitated financial Armegeddon, courtesy of President Obama, and the Democratic and Republican Party leadership.
    At the same time, USA Today of Oct. 22 reported that the top ten CEOs of the United States made $5.7 billion last year, even as we are at the verge of a financial blow-out, that will dwarf the one of 2008-2009. This is financial madness.
    Are we to dismantle our health care system, based upon the recommendations of these mismanagers and people whose programs for theft would make Jesse James blush?
    To remedy this crisis, we must undertake three important initiatives:

    1. SEPARATE THE PURPOSE AND PRINCIPLE OF MEDICINE FROM A DISEASED ECONOMIC SYSTEM. Restore the essence of the Hippocratic Oath as the philosophical center of the medical professions. The practice of medicine is meant to serve the development of people, not Wall Street financial conglomerates, and “population reduction” agendas.

    As Hippocrates said, “It is the duty of the physician, not only to do that which immediately belongs to him, but likewise to secure the cooperation of the sick, of those who are in attendance, and of all the external agents.”

    2. RESTORE THE GLASS-STEAGALL ACT OF 1933. The same Wall Street debt bubble which is crushing the Federal government is crushing the medical profession, as well as the rest of the economy. The only way to liberate ourselves from its destructive effects, is to restore the Glass-Steagall Act of 1933. Its repeal in 1999 opened the door to the growth of the biggest financial bubble in history. We must separate commercial banking from investment banking, and let Wall Street sink under the weight of its own bad investments.

    No more bailouts, or bail-ins, for Wall Street.

    3. IMPEACH PRESIDENT OBAMA. He has repeatedly demonstrated that he is incapable of performing the job for which we hired him. Multiple legal authorities have already assembled articles for impeachment. This man has failed you, and will allow you to die, with his inept and undeniably lethal policies that masquerade as “health care reform.”

    It is time for the American people and their medical community to wake up, before it is too late.
    See Dr. Shelley’s presentation :“The Commoditization of the U.S. Health-care System” at the Schiller Institute “New Paradigm” conference in New York. ” http://larouchepac.com/node/28640

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s