Nothing to see here: Obamacare to cost $50K per person covered

posted at 1:21 pm on January 27, 2015 by Jazz Shaw

Buried deep inside the latest CBO budget outlook report there is some shocking (by which I mean not shocking to anyone who has been paying attention) information on the effects of ObamaCare. You can forget about all the promises that were made by the administration and their Democrat allies during the debate… they were lying clearly inaccurate in their estimates. So how bad is it? The Daily Mail came out with the first report.

It will cost the federal government – taxpayers, that is – $50,000 for every person who gets health insurance under the Obamacare law, the Congressional Budget Office revealed on Monday.

The number comes from figures buried in a 15-page section of the nonpartisan organization’s new ten-year budget outlook.

The best-case scenario described by the CBO would result in ‘between 24 million and 27 million’ fewer Americans being uninsured in 2025, compared to the year before the Affordable Care Act took effect.

Pulling that off will cost Uncle Sam about $1.35 trillion – or $50,000 per head.

If you want to read the report yourself, it’s tucked away back in Appendix B of the document. (.pdf format) The total bill over ten years is closing in on the two trillion mark, and the various taxes and fees imposed under Obamacare are only going to make up for $643B of it. So I guess we really did have to pass the bill to find out what was in it.

At this point it is worth asking if maybe the entire fight could have been avoided without crafting such an elaborate system. Assume for arguments’ sake that the Democrats were going to win on the general subject of having some form of massive government program for health insurance. Assume further that the insurance industry was going to agree to go along with some new government mandates about having to cover pre-existing conditions and older children living at home, etc. in exchange for an assurance that they would have a bunch of new customers paying them. At that point, the bill could have been chopped down to about ten pages in length.

The plan is covering 27 million people with estimates of that growing by 25% over the next decade. A mid-range quality health care plan through most employers – including the employer contribution – can be had for roughly $5,400 per year. That works out to a little less than 150 billion dollars to just buy all of those people a health plan under the old system and the insurers would have been thrilled. The crippled, complicated government web site could have been stripped down to just ask how much you make each year and, based on that, issue you a voucher for a health insurance plan from a company that covers your area. We wouldn’t have liked it, but it would have come in at one heck of a cheaper rate and the debate would be over.

Rather than an exit question, we’ll just close with an observation. You were lied to. Again.


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Comments

The ugly truth of socialism.

otlset on January 27, 2015 at 1:24 PM

I see less and less reason to believe that this wasn’t merely a vehicle to help push the nation to bankruptcy.

Ricard on January 27, 2015 at 1:26 PM

What are you talking about? obamacare is FREE!

And they’ll never get to 27 million covered.

HumpBot Salvation on January 27, 2015 at 1:26 PM

Ned the Sitzpinkler doesn’t care. All the popular girls in study hall say 0bama’s so dreamy!

CurtZHP on January 27, 2015 at 1:26 PM

You can’t push the WHOLE county toward single payer if you just outright covered 27 million people out of the taxpayers pocket.

You have to make the whole country suffer to the point that anything would look better then the garbled mess that Obamacare is.

Wise up Jazz :)

Walter L. Newton on January 27, 2015 at 1:27 PM

The regime should just fly around in Air Force One and drop bags of money out of the door. Just as effective and way more interesting.

Kuffar on January 27, 2015 at 1:28 PM

Lying to us is standard operating procedure for this guy and his folks. All libs love the lies until the bills come to their door.

warmairfan on January 27, 2015 at 1:29 PM

Jazz has obviously never been to free community college, so he doesn’t understand new math.

corona79 on January 27, 2015 at 1:29 PM

It’s not about revenues, it is about fairness.

Social Justice has no price tag.

Brian1972 on January 27, 2015 at 1:30 PM

This will just make Obama’s approval ratings even better!

/NedPepper

MattTrey on January 27, 2015 at 1:30 PM

I’m running out to Fairplay Colorado this afternoon (I hate driving that far in mid-afternoon). I’m going to be interviewing a nurse practitioner who has a good handle on how the ACA is squeezing out rural health options.

I don’t mean that there are other options, I mean the options are becoming smaller and smaller. It’s sort of a follow up to a number of other healthcare related article I wrote over the last 14 months.

If you think things are tough in the suburban areas, try finding a primary care doctor or a clinic with in one hour of anywhere in Park County Colorado.

Walter L. Newton on January 27, 2015 at 1:31 PM

Just print more monopoly money.

ConstantineXI on January 27, 2015 at 1:31 PM

When premiums decline y’all are going to be pissed!
libfreeordie on May 7, 2014 at 10:18 AM

Schadenfreude on January 27, 2015 at 1:31 PM

This is no surprise to conservatives. The MSM will bury this story.

cat_owner on January 27, 2015 at 1:31 PM

Obamacare to cost $50K per person covered

WHAT??? Where are the magic medical unicorns???? They work for free, don’t they?

landlines on January 27, 2015 at 1:33 PM

If they didn’t make it so complicated, then you would have figured out that the less money you have, and the more dependent on government you are, the easier it is to control the sheeple.

rightside on January 27, 2015 at 1:34 PM

I am reminded of a frequent statement by Staff Sergeant Turman, my Senior Drill Instructor (Parris Island 1970):

No screaming $hit, Private!!

Lord Whorfin on January 27, 2015 at 1:36 PM

Savings!

Abelard on January 27, 2015 at 1:37 PM

$50,000 per slacker!?!
That figure looks like a Zero-care deductible for some.

StubbornGreenBurros on January 27, 2015 at 1:37 PM

At this point it is worth asking if maybe the entire fight could have been avoided without crafting such an elaborate system.

We are, once again, forgetting the real intent of the ACA legislation. It’s not written to ‘fix’ the challenges in the US healthcare industry. It’s not even intended to ‘solve’ the problem of people who are uninsured or don’t want to pay for health insurance.

The ACA was all about expanding the power and control of the Federal Government via the seizure of 1/6th of the national economy. The secondary goal was to massively expand wealth redistribution within the country.

Finally, the ACA and healthcare was never ever intended to be successful. The real goal was / is single payer. The votes weren’t available even with the Democrat majorities in 2009 – so the plan was to create an EpicClusterFark with an intended implosion – and to argue afterwards the only remaining viable option (since we can’t go back) is single payer. And when we talk about single payer, let’s not forget the results of the government running a single payer program already – the VA system. How well is that working out?

Athos on January 27, 2015 at 1:38 PM

I hate Obamacare as much as the next guy, and am going to re-read this and links, but… if the cost is about $150billion/year, then over the 10-year CBO range (up to 2025) wouldn’t the cost be… $1.5trillion to simply by them all a $5400/year plan? Or… $50k-ish per person for 10 years, as is indicated in the initial part of the post?

Maybe I’m missing something.

Midas on January 27, 2015 at 1:39 PM

So, it would have been cheaper and less disruptive to go with McCain’s tax credit idea? You don’t say…

Count to 10 on January 27, 2015 at 1:41 PM

It’s hard to believe these politicians will let this thing go forward untouched, but they have done nothing to change it thus far, and I don’t expect even Republicans to change it.

rickv404 on January 27, 2015 at 1:41 PM

The total bill over ten years is closing in on the two trillion mark, and the various taxes and fees imposed under Obamacare are only going to make up for $643B of it.

So, the real bill is actually $1.99 Trillion over that ten year window. The question I have is, what if they get less than what they are expecting in the short/long term to cover the subsidies? Nothing says that they will even have ‘Cadillac’ plans in the future if people can get just about the same for less.

Here is where the $643B comes from:

An offsetting amount of $643 billion in net receipts from penalty payments, additional revenues resulting from the excise tax on certain high-premium insurance plans, and the effects on income and payroll tax revenues and associated outlays arising from projected changes in coverage offered through employers.

I also thought the penalty payments were for coverage of those who opted to pay the penalty in lieu of getting coverage. How can they use that to pay for subsidies AND coverage of those who didn’t get it? I don’t see how they can. Or are the hospitals going to have to bit the bullet and take a loss on those people as well as those who fell through the cracks and weren’t covered by Ocare?

Employers will change their coverage in order to save the most money for themselves, and their employees. I don’t see too much revenue coming from that group. I think that their offset will dwindle down to next to nothing pretty quickly.

Patriot Vet on January 27, 2015 at 1:42 PM

‘Obamacare will not add ONE DIME to the deficit!’

– President Obama

‘Instead, it will add 13.5 TRILLION DIMES to the deficit.’

– Congressional Budget Office

Resist We Much on January 27, 2015 at 1:43 PM

Yeah, but do you have any idea what a a sleeve of Titleists cost?

fogw on January 27, 2015 at 1:45 PM

Since it is obviously more clear that we were lied to by this administration, can the SCOTUS reverse their decision – in particular Chief Justice Roberts? Whay say ye’?

Cherokee on January 27, 2015 at 1:46 PM

So, it’s kind of annoying to have things reported inconsistently in one year or ten year increments. It comes down to $5000 a year.

Count to 10 on January 27, 2015 at 1:47 PM

As I recall, giving oleo pie a voucher was McCain’s idea that Obama said would not work.

Techster64 on January 27, 2015 at 1:50 PM

At this point it is worth asking if maybe the entire fight could have been avoided without crafting such an elaborate system.

At this point?!!?! That was ALWAYS the question.

The only reason it is suddenly MORE valid than ever is because the only thing any Democrat can say in support of the law is… but, but… There are 10 million less uninsured.

Yeah, sure. But you sure as HELL didn’t have to pass that monstrosity to get insurance for 10 million people. I dare say there were an infinite ways to achieve that goal that would have been far less costly and damaging to the health care industry than what WAS done.

deadrody on January 27, 2015 at 1:53 PM

I hate Obamacare as much as the next guy, and am going to re-read this and links, but… if the cost is about $150billion/year, then over the 10-year CBO range (up to 2025) wouldn’t the cost be… $1.5trillion to simply by them all a $5400/year plan? Or… $50k-ish per person for 10 years, as is indicated in the initial part of the post?

Maybe I’m missing something.

Midas on January 27, 2015 at 1:39 PM

I read it the same way.. Jazz’s solution ends up costing a bit more than the $1.35 trillion estimated for OCare.

preallocated on January 27, 2015 at 1:54 PM

We laugh but this will be Reason #1 why the left will insist we must go to single payer now because nationalizing healthcare will make it cheaper!!11!!!

gwelf on January 27, 2015 at 1:57 PM

Gruber was right…

Pelosi Schmelosi on January 27, 2015 at 1:58 PM

it would have been cheaper to just pay for private insurance plans on the open market

gerrym51 on January 27, 2015 at 1:59 PM

Google “obamacare to cost $50,000 per person covered” and you can see how little coverage this is receiving.

bw222 on January 27, 2015 at 2:00 PM

Shovel ready.

CW on January 27, 2015 at 2:01 PM

The current egregious taxes and penalties will cover about 1/3 of this cost, and the pigs will need to come up with another $1.4 trillion or so in the next ten years just to keep solvent…and that’s without any unforeseen circumstances arising to push costs higher.

HAHAHAHAHAHAHAHAHA *cough cough*

We’re about to start burning, find yourself a friend out in the rurals and see about renting a room from them because you might need it.

Bishop on January 27, 2015 at 2:01 PM

How about we just give everyone $100,000 and get the government out of everything except what the Constitution requires? People would vote for that. It would destroy the Democrat Party overnight.

Buddahpundit on January 27, 2015 at 2:02 PM

Most people wouldn’t even notice.

Schadenfreude on January 27, 2015 at 2:02 PM

This will just make Obama’s approval ratings even better!

/NedPepper

MattTrey on January 27, 2015 at 1:30 PM

Poor Ned, obama is back underwater with Rasmussen,

Poll Date Approve Disapprove Spread
RCP Average 1/7 – 1/26 45.4 49.3 -3.9

Rasmussen 1/24 – 1/26 47 51 -4

HumpBot Salvation on January 27, 2015 at 2:03 PM

You were lied to. Again.

Go figure.

At the same time, the low-info voters are more interested in deflated footballs.

GarandFan on January 27, 2015 at 2:03 PM

This will just make Obama’s approval ratings even better!

/NedPepper

MattTrey on January 27, 2015 at 1:30 PM

—————

Google “obamacare to cost $50,000 per person covered” and you can see how little coverage this is receiving.

bw222 on January 27, 2015 at 2:00 PM
———

The MSM is still too strong and America’s too lazy.

CW on January 27, 2015 at 2:04 PM

Doctor tells Patient he has only 6 months to live.

Patient says he can’t pay bill by then.

Doctor gives him 6 more months.

:)

Senator Philip Bluster on January 27, 2015 at 2:05 PM

From the CBO report…

The 31 million people projected to be uninsured in 2025
represent roughly one out of every nine residents under
age 65 (see Figure B-1). In that year, about 30 percent of
those uninsured people are expected to be unauthorized
immigrants and thus ineligible for exchange subsidies or
for most Medicaid benefits; about 10 percent will be
ineligible for Medicaid because they live in a state that
will not have chosen to expand coverage; about 15 per-
cent to 20 percent will be eligible for Medicaid but will
choose not to enroll; and the remaining 40 percent to
45 percent will not purchase insurance to which they
have access through an employer, through an exchange,
or directly from an insurer.

The projected gains in insurance coverage relative to what
would have occurred in the absence of the ACA are the
net result of several changes in the extent and types of
coverage. In 2018 and later years, between 24 million and
25 million people are projected to have coverage through
the exchanges, and 14 million to 16 million more, on
net, are projected to have coverage through Medicaid and
CHIP than would have had it in the absence of the ACA.
Partly offsetting those increases, however, are projected
net decreases of 9 million to 10 million in the number of
people with employment-based coverage and 4 million to
5 million in the number of people with coverage in the
nongroup market outside the exchanges.

https://www.cbo.gov/sites/default/files/cbofiles/attachments/49892-breakout-AppendixB.pdf

Tip of the iceberg…we’ll be getting soaked even more for those “unauthorized” immigrants, likely as a result of Republicans…

Nothing to see here indeed…

Pelosi Schmelosi on January 27, 2015 at 2:05 PM

Humpbot… Not that Ned would ever post those results.

CW on January 27, 2015 at 2:09 PM

WHAT??? Where are the magic medical unicorns???? They work for free, don’t they?

landlines on January 27, 2015 at 1:33 PM

They come later. In the ACA they are called the medical workforce. They will be workers who have had their education subsidized by the government and in turn they will work in suburban and rural clinics, clinics built by the government and paid for by the taxpayers.

Read the whole ACA some time and all your questions will be answered. I did.

Walter L. Newton on January 27, 2015 at 2:13 PM

So, tell me again how we supported sweeping elections in 2010, 2012 and 2014 electing more Republicans over Democrats to do what?

DDay on January 27, 2015 at 2:13 PM

And in the ensuing years, more policies will become ‘high’premium’ plans due to the nature of Ocare. [CBO Report p. 3]

In addition, CBO and JCT expect that premiums for health insurance will tend to increase more rapidly than the threshold for determining liability for the high-premium excise tax, so the tax will affect an increasing share of coverage offered through employers and thus generate rising revenues.

And then employers will either drop coverage, or you will start getting soaked. A lose-lose situation.

Patriot Vet on January 27, 2015 at 2:14 PM

Most of us here realized from the start that ObamaCare wasn’t / isn’t about health care at all.

The promise of “affordable coverage for everyone” was just a Trojan Horse offered to the unthinking and easily deluded “folks”.

Instead, ObamaCare was always about expanding the size of government and its power and control over the American people and the economy.

Evaluated in that light, it has actually been and will continue to be, unfortunately, phenomenally successful…

climbnjump on January 27, 2015 at 2:14 PM

And then employers will either drop coverage, or you will start getting soaked. A lose-lose situation.

Patriot Vet on January 27, 2015 at 2:14 PM

…or end up on Medicaid…

Pelosi Schmelosi on January 27, 2015 at 2:17 PM

They will never cover 27 million…

sorrowen on January 27, 2015 at 2:18 PM

…or end up on Medicaid…

Pelosi Schmelosi on January 27, 2015 at 2:17 PM

Single payer. Mission accomplished.

Walter L. Newton on January 27, 2015 at 2:18 PM

Single payer. Mission accomplished.

Walter L. Newton on January 27, 2015 at 2:18 PM

Same chit…

Pelosi Schmelosi on January 27, 2015 at 2:20 PM

$50,000 each?

No.Way.

$200,000 each or more.

You know I’m right.

jukin3 on January 27, 2015 at 2:21 PM

Seriously? Shoving $2 TRILLION Federal dollars at the uninsured problem for almost 10 years and we still have more uninsured than we started out with four years ago when we started this mess?

From the report:

From 2016 through 2025, the annual number of uninsured is expected to decrease to between 29 and 31 million…..

Johnnyreb on January 27, 2015 at 2:24 PM

Need some more good news..??

Testimony
The Budget and Economic Outlook:
2015 to 2025
Douglas W. Elmendorf
Director
Before the
Committee on the Budget
U.S. House of Representatives
January 27, 2015
https://www.cbo.gov/sites/default/files/cbofiles/attachments/49906-Outlook_Testimony_House.pdf

Pelosi Schmelosi on January 27, 2015 at 2:28 PM

I can’t follow the math of this thing, but I’m not a politician, but it seems to me that if they claim it will take ten years to get to 27 million insured, they still are short 13 million who remain uninsured.

They ruined our health system for this??

Vouchers!

PattyJ on January 27, 2015 at 2:35 PM

Pelosi Schmelosi on January 27, 2015 at 2:05 PM

Getting the calls yet, I am, got another about half hour ago.

“We need to stay 56 million strong and make sure we keep the GOP in office, can we start you with a $200 donation?”

Poor guy, volunteered for the day or paid a pittance to spout the GOP line, and I gave him hell for it while he dutifully clung to the script. Told him I was sorry at the end but whatever.

Bishop on January 27, 2015 at 2:38 PM

Bishop on January 27, 2015 at 2:38 PM

I get emails Bish…don’t answer the phone anymore…

Pelosi Schmelosi on January 27, 2015 at 2:44 PM

The CBO and the Joint Committee on Taxation, a group of members from both houses of Congress, prepared Monday’s report on the overall direction of the federal budget.

They estimated that ‘the net costs of the coverage provisions of the ACA [Affordable Care Act] will rise sharply as the effects of the act phase in from 2015 through 2017.’

Those costs will ‘rise steadily through 2022′ before leveling off for three years, the groups’ economists determined. But even at that point, the Obamacare program will cost the governemnt ‘about $145 billion’ each year.

That number doesn’t include the insurance premiums and out-of-pocket health care costs paid by Americans – only the government’s role in implementing the law and paying for its guarantees.

And the law will still leave ‘between 29 million and 31 million’ nonelderly Americans without medical insurance, says the CBO.

Resist We Much on January 27, 2015 at 2:55 PM

That $50k per person does not include premiums or deductibles paid for by people who acquire Ohnocare.
Last year I paid $8k in premiums and health care costs. My insurance paid $1k in coverage. Much more free stuff and I’ll be bankrupt.

bobthm3 on January 27, 2015 at 2:57 PM

Boner and Turtle say it is not a hill to die on. they say give us a majority in Senate. ok, now they have majority, but now they say they need 60. give them 60, and they will say they need 67 to override a veto. give them 67 and they will say they need the white house to avoid a political fight

These gutless cronies and phonies are just stringing everyone along for the RINO ride.

Senator Philip Bluster on January 27, 2015 at 2:57 PM

There must be a pony in here somewhere.

PushTheButtonMax on January 27, 2015 at 2:57 PM

FREE HEALTHCARE FOR ALL ON DEMAND AND WITHOUT APOLOGY NOW IS A HUMAN RIGHT!

Or something.

Star Bird on January 27, 2015 at 3:03 PM

About 50K for someone’s opportunity to buy an $8000 policy sounds about right. “Close, for government work.”

It cost $24K to give you $4,000 off your new mini vehicle in Cash for Clunkers.

That works out to about $6000 in cost for every $1000 in benefit. And we know that government workers are paid better than the rest, and this does not even include their lifetime pension.

Fleuries on January 27, 2015 at 3:17 PM

I read it the same way.. Jazz’s solution ends up costing a bit more than the $1.35 trillion estimated for OCare.

preallocated on January 27, 2015 at 1:54 PM

I think what Jazz is saying is that Obamacare will cost $5K per person per year and, on top of that, the person will have to pay all or part of their premiums.

Had we spent just a little more at $5,400 per, they would’ve gotten a policy totally paid up.

Occams Stubble on January 27, 2015 at 3:36 PM

There’s other news in the CBO report…as noted by James Pethokoukis…

These are the good times. Enjoy them because things are unlikely to get much better. In fact, they are likely to get worse. For instance: CBO expects the US economy to grow at 3% this year and next, and at 2.5% in 2017. That’s a definite upturn in post-recession performance, though still below the postwar average of 3.4%.

But then deceleration: “For 2020 through 2025, CBO projects that real GDP will grow by an average of 2.2 percent per year—a rate that matches the agency’s estimate of the potential growth of the economy in those years.”

Re the deficits the dishonest on the left are celebrating over Obama’s ‘halving’ of the deficit number (after running it up first)…

Although the deficits in CBO’s baseline projections remain roughly stable as a percentage of GDP through 2018, they rise after that. The deficit in 2025 is projected to be $1.1 trillion, or 4.0 percent of GDP, and cumulative deficits over the 2016–2025 period are projected to total $7.6 trillion. CBO expects that federal debt held by the public will amount to 74 percent of GDP at the end of this fiscal year—more than twice what it was at the end of 2007 and higher than in any year since 1950 (see figure below). By 2025, in CBO’s baseline projections, federal debt rises to nearly 79 percent of GDP.

Unless there’s some real fundamental change from the trajectory that Obama has attempted to lock us on, this (now) is as good as it will get over the next decade…and that’s if the CBO is accurate in it’s projections. (Yes, that will turn the current nearly $18T national debt into a $25-28T national debt in 10 years…)

Athos on January 27, 2015 at 3:45 PM

So unless it’s recouping that 50K in taxes, it’s definitely not “budget neutral” which means that as it should have been passed with budget reconciliation rules package, it should have an automatic sunset in it, should it cease to be budget neutral.

Axeman on January 27, 2015 at 3:51 PM

And a Peckerhead-less thread….

itsspideyman on January 27, 2015 at 4:10 PM

It will cost the federal government – taxpayers, that is – $50,000 for every person who gets health insurance under the Obamacare law, the Congressional Budget Office revealed on Monday.

And by a strange coincidence, that’s around the same amount each Citizen owes for the national debt according to the PTB.

Actually, more like $56,000 and change, so this actually sounds like a deal!

Dr. ZhivBlago on January 27, 2015 at 4:33 PM

Shhhhh…..we don’t talk about obamacare around here anymore. everdiso on July 22, 2014 at 1:27 PM

Akzed on January 27, 2015 at 4:39 PM

But these Obamacare posts are about whistling past the graveyard, by next Novemeber Democrats will be openly running on the ACA. Mark my words. libfreeordie on December 20, 2013 at 10:14 AM

Akzed on January 27, 2015 at 4:40 PM

Wow, look at how the trolls defended obama’care’ and its glory.

Schadenfreude on January 27, 2015 at 5:11 PM

This is what #winning looks like!

pain train on January 27, 2015 at 5:29 PM

And a Peckerhead-less thread….

itsspideyman on January 27, 2015 at 4:10 PM

It’s a lot of work moving the goal posts.

Axeman on January 27, 2015 at 6:39 PM

Nothing to see here: Obamacare to cost $50K per person covered

Well of course it’s not saving money now!

But just you wait until everybody is forced onto Obamacare, and they can start doing some serious cutting of expenses. Not only will you start seeing savings in Obamacare, but Obamacare cuts will simultaneously cut spending on VA benefits, Medicare, and Social Security checks. *

And not just on the medical costs, either.

(You might not want to think too much about how.)

Excluding important Democrat-voting er, subjugated victim classes, of course.

There Goes the Neighborhood on January 27, 2015 at 10:16 PM

Jeb Bush agrees mistakes were made, but says the ACA is an “act of love.” Because good intentions.

saltlick on March 25, 2015 at 3:39 PM