The Congressional Budget Office has issued an updated accounting report on the Affordable Care Act, and there is good news. We already know some of the good news — more people will be covered by Obamacare than expected. But I just want to remind people how significant that is — the whole point of health care reform was to get more people access to proper health care.
But there is more good news. The cost of Obamacare was also revised down, saving the government a projected $104 billion. The reason for this savings is because insurance premiums are lower than expected. Hah! When was the last time you heard that health insurance cost less than expected? That means that the deficit will be lower. And even if you aren’t getting one of those government subsidies for your health insurance, you will also save money because your (unsubsidized) premiums will be lower.
According to the Kaiser Family Foundation, which has been monitoring the results of the implementation of Obamacare:
It is good news that premiums have come in lower than expected, meaning lower costs for the federal government and for families as well. It’s a sign that the ACA may be working to hold premiums down by forcing insurers to compete over price rather than by cherry-picking healthy people.
I think this is very significant. Because of the ACA (the oft maligned government regulation) health insurance is starting to act like a free market, causing insurance companies to compete.