Affordable Health Care Act Results in Costs Rising Faster Than US Inflation Rate

When Barack Obama, Harry Reid and Nancy Pelosi tried to brainwash the American people into thinking that they needed the Affordable Care Act, they promised that it would drive health care costs down and make it more affordable for everyone.

In a new report released by the Health Care Cost Institute, the cost to employers for their employee health coverage increased by 3.3% in 2010.  The inflation rate for the US for 2010 was only 1.5%, less than half the rate of increase of health care.

The Health Care Cost Institute researchers managed to gather data from three of the four largest health insurers by enrollment numbers (Humana Inc, United Health and Aetna).  They were also able to gather data from one of the largest nonprofit providers (Kaiser Permanente).  To their knowledge, this comprised the largest set of private insurance data every compiled for such research purposes.

Their research revealed that the price of prescriptions increased by 3%, admission cost for inpatient services increased by 5.1% and the cost of outpatient treatments rose by a whopping 10%.  While costs across the board were rising at more than double the national inflation rate, the number of people enrolled in health care programs decreased by 1%.

Partially to blame for the decrease in enrollment is credited to the increased cost to employers and employees.  While the cost to insurers increased by 2.6%, the cost to employers jumped to 7.1%.  Many employers were forced to charge their employees more for their share of the coverage.  In addition, the coverage offered to employees was less than in years past and many deductible rates were jacked up by thousands of dollars.  Consequently, a growing number of employees refused to pay more for less coverage.

Figures for 2011 are not yet fully available but there are indications that the trend of higher costs for health care continued last year.  Additionally, it appears that the number of employees opting out of work provided health coverage has increased as many say they can no longer afford to pay the higher rates.

It seems that the only ones that have benefitted from Obamacare are the doctors, hospitals, health care providers and the federal government.  Basically, everyone has benefitted except the American people who are being force to pay more for less or do without all together.

They really need to rename Obamacare as the Unaffordable Care Act.

 


  • http://pulse.yahoo.com/_NLORN6B3ZNGCAJTFHWWFUUEY4Q jong

    Of course if Obamacare is not rejected by the Supreme Court or gotten rid of by the next House and Senate and President healthcare costs will go through the roof to the point that insurance companies will not be able to cover it and stay in business. Of course then Obama takes the place of the insurance companies and tells us how much to pay and what kind of treatment we will be allowed. And because most of the funding for healthcare comes from insurance companies Obama will have taken over defacto all the hospitals. Of course Obama will then decided to cut costs literally throwing grandma over the cliff because old people are of no use to the state. Ask any one from eastern Europe they will tell you what we are in for.

  • hongryhawg

    Let's pray the SCOTUS justices are paying attention to this and are not being coerced and/or threatened by this administration like so many judges have been already.

  • Doodlebug

    Seems to me that this is exactly what we were trying to tell them before obummercare came to be law. You know when they were doing everything in secret, behind closed doors and they had to pass it so we could find out what is in it, remember??? I hope the SC doesn't allow it to stand or grandma really will go over the cliff and so will everyone else.

  • Ed Knows

    My Insurance went up 10% from last year on a policy that has a $7,164(12 mo) Premium and i still have a $6000 Deductible! But I for sure don't want to be on the Government Health Care Plan.

  • danclamage

    Gotta compare apples to apples. Medical care costs have always outstripped inflation. Since Obamacare began its implementation, has the rate been bent up or down?

  • Marine101

    You think you have problems? I'm retred military with the injuries that come with it. My guaranteed health care from the Feds is going up in co-pays and most doctors and hospitals won't even take it in the first place. They sure loved me while I held back the wolves but now that I need my benefits it's "see ya". This country is really starting to suck.

  • Tim Austin

    Doctors have lost money from the changes in health care. Physician reimbursement from Medicare is scheduled to be reduced 30% January 1st. Medicaid reimbursement was cut 10% earlier this year in our state. As a private practice physician and employer we've seen our cost for health insurance skyrocket over the last few years. Doctors and hospitals will continue to lose along with our patients. Only the government will benefit from this law.

    • Lorry

      Has the government been in charge of the insurance companies all these years... I assume you treat other than Medicare? If so, who or what entity accounted for the low pay to doctors and high insurance costs. You know insurance companies negotiate very low rates with doctors and then contest as much as possible that is submitted. Not to mention slow pay. That private capitalistic insurance paid for by me and all your patients. Bet Medicare payment for procedurs is not less than my Aetna has negotiated. Please be honest with yourself. You should know.

  • Marvinas2

    You also have to look at what Obamacare is scheduled to do to us AFTER the 2012 elections - reasons why they wouldn't tell us in advance what was in the bill. In 2013 Obama's HEALTH CARE plan adds 3.8% sales tax on all REAL ESTATE sales - what does health care have to do with real estate? Over the course of 2012, 2013, and 2014 the medicare deduction from your monthly Social Security payments is scheduled to increase from around $96/mo. to around $240/mo. And we already know that the HEALTH CARE plan mandated that the government take over all STUDENT LOANS! This "health care" law goes WAY BEYOND anything to do with health care. And none of it takes effect until after the 2012 elections. Are they stupid or shrewd or what?

    • Pope

      Site a source for the Medicare increase for 2014. I can't find anywhere so you should know. I pay 99 + drug supplement t. Nowhere does it show that will rise to 240. Should be any easy thing to prove if you are right.

      • Marvinas2

        Pope - you're right - I can't find anywhere in the PPACA where it states those numbers. The only real information I can find is that "Medicare beneficiaries are required to pay one fourth of the cost of running Medicare". The publishers of Fact-Check, an arm of Obama's Annenberg Foundation, say that it's unlikely that it'll get that high. So I guess it's a matter of looking at track records and deciding who you want to believe. ("We'll be out of Afghanistan in a year!" "I will reduce the deficit by 50% during my first term!" etc.)

    • Donna

      My husband and I are both on Medicare paying (each)$99.00 a month and his supplement policy just went up from $180.00 to $270.00 begining this June 1st. Since they shoved Obama Care down our throats it started going up, $140.00- $160.00 - $180.00 and more $270.oo. Thought he said this was going to save people moneyLOL. Fogot one important thing, "When Obummers mouth is moving he is lying"!!!!!

      • Marvinas2

        My supplemental policy premium did the same.

    • DixieAngel_76

      There are also provisions hidden deep within it that change regulations in regards to buying and selling gold. Sound creepy yet?

      • Marvinas2

        I think Obama's entire agenda is buried in the "Health Care" bill.

  • DocHank

    I only wish my reimbursements went up half as fast as the premium I pay for my employees insurance (today I found out that it is 12% for our plan year starting July 1, similar to each of the last few years - and that is without any adverse claims). Instead, we are lucky if we can get a token cost of living increase (2% May 1 from the same insurance company). So, while I can't say where the money is going, I can assure you that it is not going to physicians, despite what Giacomo said above. (Wasn't Giacomo the name of the clown in some Italian opera?)

  • Horace

    There are very very few parts of Affordable Health Care implemented in 2010. The major one was making insurance companies cover children with Pre existing conditions (horror), lifting lifetime limits and requiring insurance to cover up to 26. More really horrible things. So ye old insurance companies really really can't tie any large increase to AHA. Really. Show the statistics that tie any increase to those provisions. Insurance companies have been raising rates every year for a very long time and at the same time excluding any adult with Pre existing conditions. Employers have paid more as have employees.n this will not cease should AHA be revoked for whatever reason. With a larger insurance pool, cost WILL DECREASE. Of course food patriots who have insurance can't be having the Commie government tell them what to do. I hope all your kids have insurance. Most people on this blog have military or Medicare + A supplement. Not so for people who don't work for companies who provide Heath insurance. There are a lot of those and you can't always get insurance if you can't afford or have Pre existing condition. So be against AHA but not for cost increases for 2010 or 2012 or 2013 for that matter. Do the math.

    • http://twitter.com/niteowlmom3 Nite Owl Mom

      Um, you honestly don't think being forced to cover pre-existing conditions raises costs? It does. It also creates a disincentive for healthy people to carry insurance ... why buy insurance now, when you can just buy it after you get sick -- or injured???? And oh, btw, because of Obamacare, insurance co's have to REBATE back anything over a certain percentage of their reimbursement costs, leaving them less able to plan against future losses. In other words, they are already being micro-managed! In other words, they have less control over RISK, which is the primary purpose of an insurance company. Just look at how WELL the gov't has run Medicare (completely unsustainable) and that's what our private health insurance industry will be like in no time, meaning they will be bankrupt in short order. Well done!

    • DixieAngel_76

      How about being against it because;
      1- The government makes a colossal mess of everything it tinkers with(USPS is just one example).
      2- It takes away personal freedom of choice for consumers.
      3- The medical industry is best run by medical professionals, not government bean counters.
      Those are just a few, I'm sure most people can add to the list.

      • CARLjr

        1. You would rather send all your mail through FedEx or UPS? The post office still makes a profit and has every year. Their problem is with a congressional mandate to prepay retirement benefits. If the post office goes under, be prepared for your letter to go from 33 cents to $12 overnight. Privatization!
        2. Do you mean the choice of being uninsured? The choice to deny both control? You can still buy insurance through dozens of providers.
        3. The medical insurance industry are not medical professionals - they are bean counters also. They have a history of denying legitimite claims. Being a private for-profit business means every dollar they pay out comes off the bottom line. Denying claims is good for shareholders, bad for patients and doctors.

        It's easy to complain. I haven't heard any ideas coming out of the GOP camp. 30 years of runaway medical expenses have harmed this country in a way that we may never recover from. Both sides would rather see the other side lose so bad that none of us will win.

        • DixieAngel_76

          Yes, CARLjr, it may be hard to believe, but I would most definitely send all of my mail through FedEx or UPS, because since these companies have to actually *compete* for customers or go bankrupt, they've learned something that hasn't ever quite caught on at the local USPS- it's called customer service! They know my time is as important to me as theirs is to them, consequently I don't stand in lines that move slower than a glacier! They also know that if they hire people who have bad attitudes and give rude service they won't get too many repeat customers, what does USPS care? They've got a captive audience. And as far as sending snail mail letters? Why bother when we have e-mail, texting and faxes? Why should I mail something that takes days to get to it's destination when I can get it there in a instant? I pay all my bills online anyway, and print out my own reciepts and bank statements. As to your claim that USPS is making a profit every year, then you'd better go back and re-check your facts, because they're not, and having to pre-pay retirement benefits is exactly what private companies must do, so why shouldn't they? Why should the taxpayers be on the hook for it?
          As to the question about uninsurance and choice, yes if someone chooses not to be insured that is their right according to the Constitution, whether you see it that way or not. There is nothing in the Constitution that gives lawmakers or anyone else the authority to compel me to buy insurance, or anything else, for that matter. I don't how you read it into my post, but who said ANYTHING about denying anyone birth control?! I most certainly didn't, and I would definitely rather see someone use proper contraception than to wait for conception then get an abortion.
          Lastly, if you think I was talking about the insurance industry when I said "medical professionals" then your intellectual well is about as deep as a saucer. I MEANT doctors, nurses, therapists, etc, and only a complete moron wouldn't get that. The insurance industry itself has done about as much damage to the medical profession as have the government and the attorneys. Medical care is supposed to be between a patient and their provider, where they work together to devise the best routine of care for that patient. It should be always individualized as no two patients are alike, but it's not. People are now treated according to clinical pathways with expected and alloted treatments and within strict time frames. Patients are put out of hospitals before they have been sufficiently healed, and often sent home needing care that there is no one to provide. Doctors are paid only pennies on the dollar as it is for treating medi-cal, medi-care patients and they are talking about achieving "savings" by cutting that even more. If you think it's hard for people on government aid to get treatment now, wait until these cuts become reality. The reality, by the way, is that nothing in life is free. If doctors and hospitals have their prices artificially set by government or insurance company mandates, then the logical conclusion is that there will have to be cuts made elsewhere to make up for the losses, and if you guessed that those cuts will be in patient care and staff cutbacks then, BINGO! We have a winner! The bottom line is that people can't afford to work for free, and doctors are no different than you, neither are nurses, or anyone else. We have bills we must pay, malpractice insurance we have to buy, and somehow the buildings have to be leased, and the light bills must be payed, not to mention the massive cost of the medications, and I've just barely scratched the surface here. Set down and think about all of the differernt things that hospitals and clinics must do to care for the sick and injured and you will see that the cost of getting medical care is already enormous. If something is not done, and soon, we will see healthcare rationing whether Obama Care is repealed or not. We can not afford to stick our heads in the sand for even another few years, and I'm sorry to burst your bubble, but "more of the same" is simply not going to do the trick this time. We have kicked the can down the road for some 40-50 years and we are finally at the end of that road. It is time for innovation, and the privated sector has the best track record for that, the government has nothing to offer but "one size fits all" and "more of the same". If you can set there and say you haven't heard any ideas from the GOP in 30 years then all I can say is you have not been listening. You claim "both sides would rather see the other side lose so bad that none of us will win" but you are also dead wrong on that claim as well. It's just that conservatives realize there is no magic money tree to pay for all of the things that the liberals think everyone should just be entitled to simply by virtue of their having been born. I could go on for pages and pages explaining the why of my opinions to you, but I can tell it would be like butting my head repeatedly into a brick wall, as you have already made up your mind to disagree with anyone who doesn't see things your way, and to hell with any facts.

        • CARLjr

          You are the one with the closed mind. You contradict your own arguments and call me names.
          You say "the government" screwed up the postal service, then admit it was technology that cut into their business. Maybe by allowing people to e-file their tax returns is what you meant. I'm sorry you had a bad experience waiting in line at your local office, but the USPS has been an institution in this country since the pony express and I for one would hate to see it go. Either way, it is a poor example of how "the government makes a colossal mess of everything"

          What happens when the uninsured get hospitalized? This is one of the major problems in the medical field today. You talk about doctors being paid pennies on the dollar, what about when it's nothing? Do you simply turn them away? Sorry, you are too poor to be in an automobile accident, or have cancer, or immunize your baby. All those things cost money and you don't have any. Prices have gone so high that people who are poor wait until it is so bad they HAVE to go to the emergency room, instead of proper care. This is a MAJOR problem, and one that needs to be solved. Maybe mandatory coverage isn't the answer, but it is at least an attempt to solve a real problem.

          We agree that people are not getting proper healthcare today because of skyrocketing costs and both private insurance and government insurance (Medicare, Medicaid, military)

        • CARLjr

          Now it is a dance. The doctors know the whole bill will not be paid so they artificially inflate it. The insurance companies know this and have a certain amount they "write off" on each bill. It is different depending on your insurance / level / ability to pay. The same treatment doesn't cost the same for everyone, it is run through a labyrinth of red tape, overcharging, and concessions. Sometimes it is cheaper to pay the entire amount rather than pay just the "patient responsibilty" with insurance - but that may not be an option depending on the doctor. The sliding scale/medical billing/insurance code nonsense has ruined healthcare and made people not trust their doctor.

          Something needs to be done. You may not like Obama, but the immediate naysaying of the entire concept without trying to make changes is what has earned the GOP the moniker of "the party of NO". Getting the two parties in government to work together on a project that will help Americans is out of the question. If any part of this passes and works - they will look good! We can't have that. I am not undr any false notion that it would be different if it were Romneycare they were debating.

          It's all corrupt. Only a saucer deep intellect moron would think otherwise. Wink.

  • CARLjr

    Red Herring. This has been the case for 30 years or more. http://satyagraha.files.wordpress.com/2009/07/inflation-factors-2.jpg

  • Guest

    The Affordable Care Act is the Unaffordable Care Act.

  • williamlsasman

    When you have millions out there getting free service the the others will have to take up the loss made by the unpayers.

    • CARLjr

      if only there were some mandate to require they be covered by health insurance...

  • http://profile.yahoo.com/BX23PSBVNKZBEOCXROD4555EFQ Ken

    The Qbama administration is toast because he has outlived his usefulness. The elite are about to pull the plug on him...

  • http://profile.yahoo.com/BX23PSBVNKZBEOCXROD4555EFQ Ken

    The True Unemployment Rate: 36%
    Workforce participation is the metric that really matters.
    by John Hayward
    02/20/2012

    http://www.humanevents dotcom/article.php?id=49644

  • steve p.

    I'm not sure doctors are that thrilled with this thing, from what I've heard.