Contrary to the loud and unceasing claims of its politically and ideologically motivated opponents, the Patient Protection and Affordable Care Act, a/k/a “Obamacare”, is working as Democrats promised.
Opponents of Obamacare claim it has failed to achieve, and is in fact dangerously undermining, its two main goals of reducing healthcare inflation and increasing healthcare participation. These claims are not just marginally incorrect, but are 180 degrees from the truth. A quick review shows that facts and experience have vindicated President Obama and Democrats.
False Claim #1: Obamacare will cause skyrocketing healthcare costs.
Reality: Precisely the opposite has occurred. The law contains a slew of programs to reduce the rate of healthcare inflation, which had been rising steadily for decades when the law passed. Unlike, the insurance exchanges and Medicaid and CHIP expansion provisions, which just kicked in last fall, implementation of the cost containment provisions started years ago. Lo and behold, as operation of those programs progressed, the rate of healthcare inflation began to decline. Though some analysts in part credit other factors, most healthcare economists credit Obamacare for most of the reduction.
Corollary to False Claim #1: Opponents of the law seized on the May 1, 2014, GDP report, which indicated a 10% spike in aggregate healthcare costs in early 2014.
Reality: Contrary to the propaganda peddlers’ spin, the recent spike in aggregate healthcare costs was projected since well before the law passed, and does not reflect an increase in healthcare inflation, but rather reflects 15.8 million newly insured citizens (8M through exchanges, 4.8M through Medicaid/CHIP, 3M young adults on parents’ plans) who are accessing needed healthcare services they previously couldn’t afford. Greater numbers of people accessing healthcare at lower cost per person is Obamacare’s end goal; all evidence to date indicates it is fulfilling that goal.
False Claim #2: No one will, can, or should, sign up for insurance, and the Obamacare exchanges will implode in a cost spiral.
Reality: Early website glitches (which opponents breathlessly hyped) were corrected, enrollment activity accelerated, especially in the final weeks, and enrollment projections were comfortably exceeded. To Governor Dannel Malloy’s credit, Connecticut’s exchange website is a model platform that is being marketed to other states.
Opponents also insisted that only the old and sick would enroll in the exchanges, forcing insurers to dramatically increase prices next year. In fact, 34% of enrollees are under age 35, with 28% between ages 18 and 34 — a favorable demographic mix that ensures continued affordability.
Corollary to False Claim #2: New enrollees aren’t paying their premiums.
Reality: This claim is nonsense. House GOP leaders recently claimed that 2.5M enrollees hadn’t paid their premiums by April 15. While that number is probably accurate, the claim leaves out the fact that about that number either hadn’t received invoices or didn’t have payments due as of April 15.
Critics claim Obamacare will not be a victory for Democrats; they’re right, it is a victory for America.
—-
The Ridgefield Democratic Town Committee supplies this column.