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Friday, January 3, 2014

Reducing the Cost of Medical Care

One of the main arguments by the supporters of Obamacare in favor of the law was that it would actually reduce the cost to the nation of medical care.  Their argument was as follows:  under the existing system, a great many poor people without insurance went to the emergency rooms of hospitals for care.  The law required the hospitals to treat all people, whether or not they had insurance, for emergencies.  The poor who just needed to see a doctor would get the initial treatment to determine that they did not have an emergency, but that was all they needed.  As a result, the emergency rooms were swamped with people who had no emergencies but who were treated at a cost many times greater than if those same people had just gone to a local doctor's office.  Obamacare would expand the number of insured people and thereby reduce the throng in the emergency room and replace their care with much less expensive doctor's visits.  So many people would be moved from the emergency rooms to the doctors offices that the national cost of healthcare would be reduced.

We now have a report of an actual study done to determine the accuracy of this argument.  A group of uninsured people were split by lottery into two groups.  One was given insurance coverage and one was left uninsured.  The groups were followed for a year.  At the end of the year, it was determined that those with insurance had used the hospital emergency room 40% more than the uninsured.  This finding was the same no matter the age, race, sex or income of the participants.  In addition, those with insurance also used doctors' office visits more than the uninsured.

What this means is that the argument that Obamacare would reduce the cost of medical care is just wrong.  If the nation replicates the results of the study, we will see costs soar, waiting times lengthen and, after a year, premiums for insurance soar.  What is already a terribly expensive system will become much more costly.

It is just another in a long line of Obamacare disasters.



 

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