American consumers are enjoying a brief “calm before the storm” reprieve when it comes to health care costs and the implementation of President Obama’s health care law. National health care spending slowed again in 2011, according to the the study by Health Affairs based on data from the Centers for Medicare and Medicaid Services. The rate of increase in health spending, 3.9% in 2011, was the same as in 2009 and 2010. That’s compared to the more than 5% increase in spending each year from 1961 to 2007.
House Ways and Means Chairman Dave Camp dug a bit deeper into the analysis accompanying the report and found that once the health care exchanges and Medicaid expansion included in the bill begin to take effect in 2014, private health insurance premium growth will increase 108% faster than what would have occurred prior to the health care law.
But there are already signs that health care spending could escalate after the main provisions of the health care law go into effect in 2014 and more than 30 million uninsured Americans enter the system.
Young workers between the ages of 21 and 29 could see their health care premiums go up as much as 42% under the Affordable Care Act (ACA), according to a new study from management consulting firm Oliver Wyman.
That’s because of a provision that restricts the amount by which rates can vary for different aged enrollees, a phenomenon which is known as age band compression. The result of age band compression is that younger people will have to pay more for their coverage than they do now so that older people can pay less – the old “rob Peter to pay Paul” argument