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Obamacare Promised $2500 Decrease in Cost for Families; Ends up as $3000 Increase

In the second debate with John McCain in 2008, Barack Obama promised, “We’re going to work with your employer to lower the cost of your premiums by up to $2,500 a year.”

It wasn’t just there, though. He reiterated this numerous times on the campaign trail. Freedomworks has a great compilation to emphasize this:

Well, to quote Freddie Mercury, “Another one bites the dust.”

Yes, yet another Obama promise has met its expiration date.

With a hat tip to Joel Pollak at Breitbart, Investors Business Daily, we have a study published by the Kaiser Family Foundation that gives us the facts, and they just don’t measure up. Actually, health insurance rates are going up. Per IBD’s report on the study:

But it turns out that family premiums have increased by more than $3,000 since Obama’s vow, according to the latest annual Kaiser Family Foundation employee health benefits survey.

Premiums for employer-provided family coverage rose $3,065 — 24% — from 2008 to 2012, the Kaiser survey found. Even if you start counting in 2009, premiums have climbed $2,370.

What’s more, premiums climbed faster in Obama’s four years than they did in the previous four under President Bush, the survey data show.

There’s no question about what Obama was promising the country, since he repeated it constantly during his 2008 campaign.

The amount families are now paying in premiums is over $5000 more than Obama promised. The graph from IBD tells the story:

The bad news doesn’t end there, though, as Pollak notes:

Obamacare also does nothing to change the underlying incentives driving the rising costs of health care, and in fact makes them worse by adding mandates and reducing patients’ choices.

Over the next four years, if Obama is re-elected and Obamacare is not repealed, the federal government will have to apply cost controls, resulting in the rationing of health care by bureaucrats and/or hospitals.

That is why the Obama administration placed such a heavy emphasis on the Independent Payments Advisory Board–and why vice presidential candidate Rep. Paul Ryan (R-WI) has spent so much time attacking it.

This should hardly come as surprising news to anyone, though. Conservatives have been saying this for a while. Even Politifact took time away from whitewashing the Obama campaign’s various and sundry other mistakes and falsehoods to rate this one as a “Promise Broken”.

COMMENTS

  • http://jakespeaks.wordpress.com/ Jake

    You’re exactly right about the real cost drivers, mbecker. I probably should have mentioned that.

  • drewblue

    So is Mitt Romney. So was Bush. And to an extent, so was Clinton and every president before him, blue or red. Welcome to politics and America.

  • BA Cyclone

    That’s the scary thing. This law has barely begun implementation — by Democrat design — and still this is happening.

    When this thing really hits, and the customer is even further removed from the price of services PLUS the new cost drivers (benefits people LOVE!) you mention…something wicked this way comes!

  • Repair_Man_Jack

    http://www.thegatewaypundit.com/2012/09/thanks-obamacare-psu-students-faced-with-1236-increase-in-health-care-costs/
    Portland State University just jacked it’s health care costs up by $1,236.

    Before this year, students paid $444 a year, which provided $7,500 in coverage. Students had no other choice. The school decided that coverage was lacking.
    The new policy covers much more–up to $100,000 in benefits with no deductible–but it costs $1,680 a year in premiums

  • msemper

    what good employer would rather pay penalty and risk losing their workers to another company bc they are cheap. and if they do they are bad business ppl. face it we all know the health care in this country is broken. the key to lowering the cost of health care is preventive care. however u need to have coverage to see a doctor time to time for check ups.

    think of it like your car; you get oil changes every few months and pay $40. just imagine if you dont change your our oil for a yr. the $160 you save for not changing you oil will cost you $2500 for a new engine

  • streiff

    it you want to post here in the future, use English not gibberish. “ppl” may be what the cool tweens send in text messages, it is not how comments are posted. If that is too big a burden you don’t belong here.

    No worker is going to quit their job in the current job market because their employer dumped them into a government run exchange. It isn’t going to happen. And given the choice between paying a fine (or tax) that is a fraction of the cost of acquiring and managing a medical insurance package an employer would have to be somewhat loopy to not take advantage of the cost savings.

  • gnelson

    Listen, bonehead, unless you have ever run a small business, you don’t need to make any comments. I ran a coffee house and would have to take the penalty or shut the doors. So shut your pie hole, open a small business, then get back to me.

  • paxcat

    Regardless of whether an employer will pay the penalty or conform to “big gov’t,” the ultimate goal is to get a one-payer system so that socialized medicine run by the gov’t is fully realized! The feds will simply drive business crazy with fines, penalties and burdensome paperwork until they give up the fight. It is actually up the “people” to stand up and fight this.

  • DefendUSA

    Oops, I accidentally voted your comment down, when I agree completely. Sorry, Strieff!

  • DefendUSA

    You, sir, are an idiot. Businesses like mine are always finding ways to keep expenses down and give the best to their employees. Also known as the cost of doing business. Even they know they can’t expect more if they want to pay the bills.
    Your narrow view of health care and the real problems we face have nothing to do with preventive care! It has to do with government controls and the growing number of regulatory agencies that overlap in a single industry. Do you know the real cost of an office visit without insurance? Do you know that uninsured people have the same access now as they did before? Do you know the real cost of any lab test performed on you?
    Young people believe they are invincible and they would rather drive a new car than pay for that insurance premium. Who can blame them? ANd there are people who choose to pay it straight because they can. When doctors are not paid what they are worth, it will be that much harder for anyone on medicaid or medicare to be seen because they will refuse to lose money. The unintended consequences of that are that elderly or low income folks have restricted access. Surprise! Isn’t this a wonderful plan Obama has passed?

  • http://www.editedforbias.com editedforbias

    Actually wrong on basic facts. Preventative care does not keep cost down. It raises costs but keeps more people alive. And more people alive longer also raises costs. This, amount others, is the falicy of Obamacare.

    Think of it this way. If 1% of the people in the US are at risk for a heart attack but we test everyone. So the cost of all of that unneeded testing would mean that the average heart attack news to cost 100x more than the testing. Since most heart attacks are minor requiring not surgery and stints have come way down in price, this is not the case. Only the very rare case involves open heart surgery. The percentages are actually far worse. We test people of little to no risk for years and years and years for al sorts of things costing the system 100,000s of dollars to find nothing.

    Prevenative testing is great for the individual person of low risk that they save. And the cost of finding it early is usually lower than the high cost of surgery. Therefore, if feels good. But in aggregate the overall cost of uselesss testing drives UP the cost of healthcare.

  • http://www.editedforbias.com editedforbias

    Agree mostly. I have a high deductible plan and an HSA. I love paying out of that cash fund when I need it and it provides so much flexibility. But the 50-60% of iss really not different than the negotiate rates the insurance companies have as well. I do not know who really pays list price for any healthcare. My guess is the person of the street putting on their credit card. A little money set aside in an HSA woudl let you pay cash (and that money is yours for retirement I not used).

  • http://www.editedforbias.com editedforbias

    So true, the design was to slowly implement it, hide to costs over years and get through 2012. By the time people realize it does not help and only costs more for less service, it is a rock solid government entitlement.

    I cannot believe the number of people that believe government can do this better. They bought into the crap about insurance companies and costs, when most people liked their plans and the cost drivers are not touched but this monstrosity. This health redistribution, making sure that everyone gets the same crappy coverage and no one gets more. Well those who got more created research and driving down the costs over time for the rest of us…without that innovation dies.

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