ObamaCare will cost more than expected, study suggests

ObamaCare, or the Patient Protection and Affordable Care Act, is a bad idea, according to a recent study carried out by researchers at Stanford University.

The report indicates that ObamaCare could cost much more than previous estimates. According to the study, employers may choose to drop worker health coverage once ObamaCare kicks in. That’s because the employer may find it more affordable to let employees obtain their own health insurance through the Affordable Care Act’s insurance exchanges, which places households with an income that falls anywhere between 133 and 400 percent of the federal poverty line in a group that may be benefited by publicly funded subsidies.

Once the number of people depending on publicly funded subsidies for health coverage goes up, the law becomes more costly to maintain.

The study also determined that about 37 million people could end up benefitting once the law is implemented, since employers would then give workers cash instead of paying for their health care coverage. By switching, employees could save by simply obtaining help from the government to get subsidized coverage, which is guaranteed by the exchanges.

While some households could benefit from that system, the law could be more costly to sustain, causing the Affordable Care Act to cost about $132 billion more than what was expected.

According to the study, an even greater number of employees could benefit from being dropped by their employers if premiums rise unexpectedly, which would add 2.25 million of people to the list of individuals receiving subsidized health coverage. Over 2 million people added to this list would increase the overall cost of the law by $6.7 billion.

That’s right: ObamaCare is everything but affordable.

The analysis, primarily published in the journal Health Affairs, offered an important piece of advice to lawmakers responsible for the implementation of the bill. According to researchers, policymakers “should plan for the possibility that the exchange subsidies may end up costing the federal government much more than currently projected.”

While this research shows that many Americans would find it more financially rewarding to take advantage of the subsidy structure, which would ultimately increase the burden on taxpayers, this isn’t the first time someone warned lawmakers of this possible outcome. James Capretta, a budget official who worked for the Bush Administration, warned that ObamaCare’s state-based exchanges could become a financial burden to the government since the labor market will likely adjust in order to take advantage of the subsidies back in 2010.


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