Government-run health-care programs have a track record of costing more than advertised.
So how much is ObamaCare going to cost? There’s the promises and estimates that were made to push the bill through Congress and then there’s the actual cost. Reason.com takes a look and offers this:
Here are three examples to think about as the health care reform law gears up for its second year of sign-ups.
1. Massachusetts Commonwealth Care. This is the plan supported by Gov. Mitt Romney that provided the very model for Obamacare. It guaranteed universal coverage and subsidized insurance premiums for low-income residents. Initial cost estimates came in at $472 million while actual costs were closer to $628 million for an error ratio of 1.2:1.
2. Medicare. In 1967, Congress estimated that the nation’s single-payer system for the elderly, Medicare, would cost $12 billion in 1990. The actual price tag was $110 billion, for an error ratio on 9.17:1.
3. Medicaid DSH program. Medicaid pays for health insurance for the poor (its expansion represents the main way Obamacare in enrolling new beneficiaries). The “disproportionate share hospital program” (DSH) gives money to facilities that serve a large number of poor patients. In 1987, Congress figured DSH payments would be less than $1 billion in 1991. Instead, they totaled $17 billion, creating an error ratio of 17:1.
Perhaps it’s time to look for health care solutions instead of empty promises.
