Study: Obamacare Savings To Skyrocket

CAP is out with a new analysis of long-term Federal budget savings generated by the Affordable Care Act, and the numbers are even better than CBO originally predicted.

Much better, in fact — an additional savings of $190 billion over the first decade of implementation, resulting in total savings over pre-ACA expenditures of $300 billion. The reason?

Simple. Premiums under the Act, thus far, are coming in substantially lower than projected. The savings to insurance consumers is the first area of benefit; the savings to government is secondary, but crucial.

Interestingly, most of the additional cost savings is driven by the very thing that Democrats assumed — wrongly, as it turned out — would make the ACA palatable to conservatives: market competition in pricing.

It’s not rocket science, but even in the early days of kludgy websites and political recriminations, insurance companies are holding steady to the tiller. They know where their bread is buttered, and there’s a lot of butter in 7 million more customers — 2.5 million of whom are expected to be young, healthy and only occasionally needful of material claims.

Socialism at work, ladies and gentlemen.

By: rhb

Rob is a NYC-based Internet entrepreneur. He's also a businessman and job creator (wait: doesn't demand create jobs?) who understands the sense, and the eventual predominance, of the progressive agenda.