NCPA - National Center for Policy Analysis

ObamaCare's Redistribution of Health

September 30, 2010

New projections from the federal Centers for Medicare and Medicaid paint a stark picture of the impact of the ObamaCare law: We're in for a massive redistribution of health resources, says Betsy McCaughey, former lieutenant governor of New York.

President Obama pledged to reduce the number of uninsured by making health plans affordable -- but that's not how his law actually does it.  Rather, it loosens Medicaid eligibility by raising the income ceiling and barring asset tests.

  • In 2014, a staggering 85.2 million people -- 31 percent of all nonelderly Americans -- will be on Medicaid and the Children's Health Insurance Program (CHIP).
  • This accounts for the majority of those who'd gain health coverage.
  • Amazingly, only 3 percent more people will have private insurance.

The new law also stipulates that Medicaid recipients get the same benefits that employers are required to provide workers, diminishing the incentive to work.  Why stick it out on the job if the benefits are just as good in Medicaid? asks McCaughey.

To expand Medicaid, the Obama law eviscerates Medicare.

  • The new projections show that in 2019, for example, ObamaCare cuts Medicare funding by $86.4 billion -- which works out to $1,428 less for each elderly patient that year.
  • Baby boomers will face difficulties accessing care that seniors now get.
  • Richard Foster, chief actuary for Medicare, has spoken with brave bluntness about the possible impact, warning that some hospitals might stop taking Medicare patients.

Source: Betsy McCaughey, "ObamaCare's Redistribution of Health," New York Post, September 27, 2010.

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