Obamacare: The Unaffordable Care Act
If it sounded too good to be true, that’s because it was. Before the Affordable Care Act was signed into law on March 23, 2010, President Obama painted an unreal, impossible picture of how this reform would affect hardworking Americans and job creators. Three years later, the true cost of Obamacare is still becoming known, but it is evident that the losses far outweigh any benefits—now or ever.
Contrary to Obama’s promise that families and individuals would save as much as $2,500 through the Affordable Care Act, premiums have already grown by more than $3,000 just since 2008—more than the projected savings. On average, studies show that premiums nationwide are likely to increase by at least 35 to 40 percent in 2014. Oklahoma, however, is expected to see even greater premium increases of 65 to 100 percent. These inevitable expenses are the direct result of Obamacare mandates requiring that all individuals and families receive a policy, pay the same amount and accept the same coverage, even if anticipated health needs (due to age, condition or preference) are different. This leads to less consumer choice in the purchase of health care—something for which Obama promised protection.
Additionally, according to the Department of Health and Human Services (HHS), plans must be charged a 3.5 percent fee to be sold on Obamacare’s new federal exchange. That fee alone translates to about $180 for individuals and $500 for families.
Along with increasing premiums for the majority of Americans, another financial burden comes in the form of at least 21 new taxes—some of which have already gone into effect. From a president who promised no new taxes for those making less than $250,000 per year, taxpayers will pay an estimated $1.1 trillion to fund Obamacare regardless of their income bracket, according to a March 2013 report from the Joint Committee on Taxation.
The president described a system that was affordable and favorable for job creators, assuring that reform would boost the job market by creating at least four million new jobs. However, employers must accept a new financial burden in providing these expensive health plans to their employees. With uncertainty surrounding how much Obamacare will actually cost, businesses have been forced to resort to hiring freezes and layoffs. At least $52 billion in fees to employers are expected due to inability or failure to comply. According to the Congressional Budget Office (CBO), due to employer inability to provide these plans, the nation is expected to lose, rather than create, 800,000 jobs over the next ten years.
Not only does Obamacare put an extra financial burden on taxpayers and job creators, but it also adds to our national deficit of nearly $17 trillion. Information provided by CBO estimated $940 billion would be required of taxpayers over the first 10 years. This year, CBO revised that number to total at least $1.88 trillion; in 2015, those same CBO projections are expected to be $2.5 trillion. That figure shows that Obamacare could account for nearly 15 percent of our current deficit by 2015.
When he rallied support for overhaul of the health care system before its passage into law, Obama described and promised an America where quality health care would be inexpensive, accessible and beneficial for all. Today Obama’s signature “accomplishment” has only produced broken promises, empty rhetoric and climbing costs to individuals and employers. With skyrocketing premiums, higher taxes and a declining job market, the future looks bleak. Future generations and the current labor force must accept higher taxes and, in the process, helplessly watch our unbelievable debt grow even larger.