Bending the cost curve down – or not

Matthew Hoy
By Matthew Hoy on April 25, 2010

A modicum of common sense would’ve told you that you can’t save money by offering health care to more people. But President Obama and Democrats in Congress fed the Congressional Budget Office a load of manure and got back their desired lie – we’ll extend the solvency of Medicare, provide insurance to 34 million more Americans and save money.

A truly unbiased media would’ve been all over this – crunching the numbers to see if they were really being told the truth.

Instead, they were by and large stenographers – reporting uncritically the preferred narrative.

Well, now that we can know what’s in the bill – it having been passed and all – we find out that we were brazenly lied to.

But the analysis also found that the law falls short of the president's twin goal of controlling runaway costs, raising projected spending by about 1 percent over 10 years. That increase could get bigger, since Medicare cuts in the law may be unrealistic and unsustainable, the report warned.

It's a worrisome assessment for Democrats.

In particular, concerns about Medicare could become a major political liability in the midterm elections. The report projected that Medicare cuts could drive about 15 percent of hospitals and other institutional providers into the red, "possibly jeopardizing access" to care for seniors.

I warned you about not mistaking “health insurance” for actual “health care.” Congratulations, you’ll have coverage, but if 15 percent of hospitals, clinics and doctors disappear, good luck getting that MRI that your new insurance covers.

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