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The Goodman Institute Health Blog

Let the Expanded Obamacare Subsidies Expire

Posted on May 26, 2022 by John C. Goodman

Brian Blase gives 14 reason to do so, including:

Terrible cost/benefit:

CBO projected that the ARP increased federal spending on subsidies by about $17,000 for every person newly insured. The reason: nearly 75% of the new spending is for people who already have coverage and largely replaces private spending with government spending. Of note, these estimates are likely too low given the new CBO report that the expanded subsidies cost 50% more in 2022 than CBO originally projected.

A terrible product:

Obamacare caused individual market premiums to double in just the first four years for coverage with high deductibles that was accepted by relatively few doctors and hospitals. The law spawned adverse selection by allowing people to wait until they needed medical care to purchase coverage, an incentive that has been strengthened by the Biden administration’s actions to make it easier for people to enroll in coverage at any time during the year.

And of low value to the beneficiaries:

A recent economics study found consumers value the subsidies at less than half of their cost.

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For many years, our health care blog was the only free enterprise health policy blog on the internet. Then, when the NCPA closed its doors, the health blog stopped as well.

During this five-year hiatus no one else has come forward to claim the space. So, my colleagues and I have decided to restart the blog in connection with the Goodman Institute. We invite you and others to use this forum to share your views.

John C. Goodman,

Visit www.goodmaninstitute.org

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