Health care spending rose at the fastest pace since 1980 in the first quarter as the new health insurance law prompted many more Americans to visit doctors and hospitals.
Analysts say the sharp increase reflects other trends that should continue to drive up both medical spending and costs in 2014 after years of slow growth.
Health care expenditures climbed at a 9.9% annual rate last quarter, mostly because of increased spending at hospitals, the Bureau of Economic Analysis said last week. That's the biggest jump since 1980's third quarter, and it followed a 5.6% increase in the fourth quarter.
The higher health outlays made up more than half of last quarter's 3% increase in consumer spending and helped prop up a generally weak economy. The economy grew just 0.1% in the quarter and would have shrunk by about a percentage point if not for the surge in health-related spending.
Most of the increase can be traced to the roughly 8 million Americans who signed up for health insurance under the Affordable Care Act mandate since late last year, says George Miller, a fellow at the Altarum Institute's Center for Sustainable Health Spending. Many probably began visiting doctors and hospitals, though it's unclear how many of the 8 million were previously uninsured.Read the rest of the story HERE.
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DEFUSE PROBLEMS with Work–Arounds
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Get ready for the next unilateral move
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At every juncture over the past year,
when confronted with political blowback,
the Obama administration has sought to
defuse problems with work-arounds,
many of which have dubious legal standing.
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“The next several months are likely to be
a crucial period for the individual mandate,
and thus for the entirety of Obamacare.
Supporters and opponents both agree
that the law depends, in part,
of the effectiveness of the mandate.
Even if fully enforced, it may not be effective because
the tax is low relative to health insurance premiums.
But to be effective at all, it almost certainly
has to be stringently enforced, especially initially.
At every juncture over the past year,
when confronted with political blowback,
the Obama administration has sought to
defuse problems with work-arounds,
many of which have dubious legal standing.
It would therefore not be surprising to see
a decision to provide a blanket exemption
to all of the uninsured this year
on the grounds that the process
for signing up was so, well, challenging.”
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How Many People Will Pay
the Individual Mandate Tax for 2014?
www.economics21.org
www.economics21.org/commentary/how-many-people-will-pay-individual-mandate-tax-2014
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www.washingtonpost.com/blogs/right-turn/wp/2014/05/08/morning-bits-347//?print=1
By Jennifer Rubin
www.washingtonpost.com/blogs/right-turn
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