CBO Says Health Care Costs Are Decreasing

During all the back and forth debate of the initial roll out of the health insurance exchange, whats been lost in the discussion is that there are two major goals of the Affordable Care Act (ACA); one is to expand insurance coverage to the uninsured, and two is to reduce the high cost of providing health care. Now that the initial period for signing up for health insurance on the Exchange is over, the focus of health care reform now turns to taming the high cost of health care and there is some positive news regarding this.

The non-partisan Congressional Budget Office (CBO) announced yesterday that the cost of the insurance expansion under the Affordable Care Act is projected to be $100 billion less than previously forcasted. The report indicates that previous estimates were too high based on new data that shows a persistent slowdown in the growth of health care costs. 

This is good news because as individuals and business pay less for healthcare, this frees up more money that can be spent on other important needs, whether its college education for young adults or increase capitol investment for a business. 

This slowdown in health care spending takes into consideration that 12 million new people now have insurance in 2014 than before because of the ACA. The Report says that "despite the significant costs of insurance expansion, that the Affordable Care Act is projected to reduce health care costs overall." 

This is good news. There is still a lot more work and challenges over the next several years to make the health care sector more efficient and less costly. But like any great undertaking you have to start somewhere and the initial steps of health care reform - of expanding coverage while bending the cost curve - is working. 

To read the article in the New York Times click here



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Health Care for Michigan
To promote health care reform and renewable energy.