Carolyn Y. Johnson: U.S. Will Spend $2.6 Trillion Less On Health Care Than Expected Before Obamacare, Study Projects
A new study predicts that the federal forecast of national health care spending under President Obama’s signature health law was a big overestimate — by $2.6 trillion over a five-year period. Looking forward, the study’s authors also point to recent evidence that a 2014 uptick in health spending that had seemed to signal a return to higher growth may have been temporary. If slower growth persists, they argue that it will become harder to argue that it is just the economy and not the cost containment policies enabled by the Affordable Care Act that are tempering spending. Hempstead said it’s becoming increasingly plausible that the federal policies included in the Affordable Care Act —
and its ripple effects as programs implemented within Medicare influence the private market — are having a tempering effect. Hempstead thinks that some of the policies that came with health reform have contributed. For example, she pointed to a policy that was intended to cut hospital readmissions by introducing financial penalties for hospitals with excessive readmissions. Being readmitted to the hospital isn’t good for patients or for payers — a report by the Agency for Healthcare Research and Quality found that 3.3 million adult hospital readmissions racked up $41.3 billion in hospital costs in 2011. Hospital readmission rates fell after the Affordable Care Act was implemented, both for conditions targeted by policy and those that weren’t.
U.S.will spend $2.6 trillion less on health care than expected before Obamacare, study projects -The Washington Post washingtonpost.com/news/wonk/wp/2…—
Robert holgate (@415holgate) August 09, 2016