In last Tuesday’s debate Mitt Romney suggested that, under Obamacare, health insurance premiums have spiraled by $2,500 per family. Not true. (Hat tip to Healthcarefinancenews.com.)
First let’s get the number right: According to an annual survey of employer plans by the Kaiser Family Foundation and Health Research & Educational Trust, since the Affordable Care Act (ACA) passed in 2010, the average annual premium for family coverage has risen by $1,975 not $2500. $1975 is a hefty sum, but 20% less than Romney claimed.
More importantly, $1,975 represents the combined increase in contributions made by employers and employees— with employers picking up the lion’s share of the hike. “In reality, premiums paid by employees haven’t changed that much.” Factcheck observes. In fact, when you look at the rise in how much employees contributed, “the federal health care law was responsible for a 1 percent to 3 percent increase because of more generous coverage requirements.” In other words, employees were paying a little more, but getting value for their dollars.
After telling a whopper about how much employee’s health care premiums have risen in the past, Romney went on to assert that if Obamacare is “implemented fully, it’ll be another $2,500 on top” of that. His evidence? None.
The Media Spreads the Myths
Yet the media continues to swallow the notion that under “Obamacare” health care spending will levitate. A few days ago, the Washington Post’s Robert J. Samuelson wrote: “Almost every expert agrees that controlling health costs is the crux of curing chronic budget deficits. Health-care spending already exceeds a quarter of federal outlays. With Obamacare’s coverage of the uninsured starting in 2014 and retiring baby boomers flooding into Medicare, the share is headed toward a third.”