Obamacare is more than just a new entitlement. Charles Blahous of economic policy think tank Economics 21 writes about just how large of an impact that its provisions will have on the economy in the future. Spending on Obamacare’s coverage expansion is immediately a massive entitlement expansion, and will only get worse.
Blahaus contrasts Obamacare with our other major entitlement programs and finds that ACA spends more than all but Medicare, and does so much faster:
After these initial rollouts, Social Security, Medicare and Medicaid costs grew far faster than originally envisioned, sometimes due to subsequent legislation, sometimes due to unanticipated healthcare cost growth. It wouldn’t be surprising for either factor to affect the ACA, which would be even more problematic for reasons given below.
When new enrollment figures were released last week, the national discussion focused on whether the ACA is fulfilling its coverage expansion goals. The largely unwritten and more important story, however, is that the ACA is rapidly becoming a colossal fiscal disaster as enrollment proceeds heedless of the concurrent collapse of the law’s financing structure.
With the Obamacare rollout largely solidified and Republicans likely unable to make any major dent in the legislation until after the 2016 election – and everything might hinge on a win there – this will continue to be a drain on the federal budget, and just one more massive health entitlement.
If the rosy economic and long term health projections don’t pan out, spending on coverage expansion is going to look much worse.