Obamacare Might Have Enrolled Only 2.3 Million; Spent $73 Billion to Save Less than $6 Billion in Uncompensated Care
Things change fast in Obamacare. Just yesterday, I discussed evidence that Obamacare had enrolled only 6 million people in subsidized, private plans on exchanges. Having read the U.S. Department of Health & Human Services’ (HHS’) latest report, it looks like the figure is only 2.3 million: “Based on an estimated 10.3 million decrease in the total number of uninsured and an estimated 8 million increase in the number covered by Medicaid, ASPE estimates that hospital uncompensated care costs will be $5.7 billion lower in 2014 than they otherwise would have been.” The difference between 10.3 million and 8 million is only 2.3 million, and that is quite a comedown from HHS’ May estimate that 8.1 million people “selected” private coverage in exchanges.
If we were asked to give a one-sentence justification for Obamacare’s increased federal spending on Medicaid or tax credits for private health insurance, it would go something like this: “People with health insurance will get timely primary care, and that will relieve the pressure on hospitals’ emergency departments.” This feel-good statement has been rolled out countless of times by advocates of so-called universal coverage. Empirically, it falls flat: Emergency departments are jammed with both Medicaid dependents and (somewhat less so) privately insured patients.
However, it does benefit hospitals, which can monetize more of their ED care, which was previously uncompensated. Let’s accept that $5.7 billion estimated drop in uncompensated care costs. How much did it cost taxpayers to buy that reduction?
The answer comes from Bloomberg Government’s Peter Gosselin: We’ve spent $73 billion on Obamacare so far. Gosselin has added up all the spending on health IT, grants, contracts, and subsidies, as shown in the chart below.
Spending $73 billion for a return of $5.7 billion. Obamacare is an amazing waste of money.