Amid all the Punch-and-Judy punditry surrounding President Barack Obama’s historic passage of health care reform, somehow we lost sight of what it’s likely to save living, breathing Americans across the economic and political spectrum on health insurance.A new report, “The Impact of Health Reform on Health System Spending” released by the nonprofit Center for American Progress, or CAP, and the Commonwealth Fund seeks to correct this oversight, caused in part by the media’s singular focus on the bill’s impact on the federal budget.
What? Good news about health reform? The nerve!
But yes, according to the report, the Patient Protection and Affordable Care Act of 2010 will result in:
- Total reductions in health care spending of $590 billion from 2010 to 2019.
- Reduction in the annual growth rate in national health expenditures from 6.3 percent to 5.7 percent from 2010 to 2019.
- A savings of nearly $2,000 on annual health care premiums for the typical family by 2019.
- Deficit reduction of up to $400 billion over 10 years.
- Medicare savings of $524 billion.
Would you like to shave $2,000 off your health insurance bill? I know I would.
The report says the new health insurance rules, combined with innovations to provider payment and delivery systems, will drive costly inefficiencies from the health system and improve access to care for millions of uninsured and underinsured Americans.
David Cutler, a CAP Senior Fellow and Harvard economist who co-authored the report, calls health reform “the most significant piece of health care cost-reducing legislation ever passed in the United States.”
His co-author, Commonwealth Fund president Karen Davis, concurs: “With passage of the Affordable Care Act we have entered a new era in American health care -- one in which all Americans will be able to get the care they need, and in which families will be protected from high health care costs.”
Those savings predictions, should they come to pass, sound pretty significant, especially given that health care costs by most accounts were previously headed through the roof.
Now that the pundits have moved on, how do you feel about Obamacare?