Increases in Medical Costs Lowering Due to Obamacare
Posted on January 21, 2015 by admin
As conservatives wait for January 2015 with baited breath, so that they can have yet another swing at repealing the Affordable Care Act, there is one key fact that citizens of the United States must become aware of: Obamacare is working. Already having expanded Medicaid in 28 states (including Washington D.C.) and improving the access to affordable health plans, yet another positive effect of the ACA has come to light. The Affordable Care Act is lowering the annual increases in health-related spending.
A recent announcement by the Centers for Medicare and Medicaid Services indicates that healthcare spending in the United States had increased 3.6 percent in 2013. Bumps in healthcare spending never seem to be good news, but the 3.6 percent increase marks the slowest growth rate in more than 50 years (since 1960). In addition, 2013 was the fifth consecutive year that the increases in healthcare spending were minimal.
When President George W. Bush was in office, the average annual increase in health-related spending was more than two times that.
Beyond simply lowering the annual increases expected in this field, pharmaceutical innovation continues under the Affordable Care Act. The pharmaceutical industry has revealed that 2013 saw more drug launches than any year in the last decade. So even when spending less and insuring more, the Obama administration is allowing the medical industry to push forward.
It would be overstatement to claim that the Affordable Care Act is the sole reason this lowering is taking place, but the recent drop in health insurance premiums from 4 to 2.8 in 2013 shows that Obamacare is playing a significant role in the matter. And the drop in the uninsured rate (from 21 to 13 percent in 2013), which is expected to become even lower with the second open-enrollment period still in full swing, demonstrates that the healthcare law is working just as the president had originally proclaimed.