CMS Study Finds Affordable Care Act Under Obamacare Isn't That Affordable After All

A study published by the Centers for Medicare and Medicaid Services (CMS) found that the Affordable Health Care Act, part of Obamacare, will actually drive health care spending up slightly, to nearly one fifth of the U.S.A.'s gross domestic product by 2020, while extending insurance coverage to 30 million more Americans.

The report from the CMS Office of the Actuary projected that health expenses will rise 5.8 percent annually over the next decade -- 1.1 percent higher than anticipated economic growth. That kind of growth will mean the nation's total health tab will come close to $4.6 trillion in 2020, accounting for about one-fifth of the U.S. gross domestic product.

According to the report, the federal government's share of the bill is likely to increase from 27 percent in 2009 to 31 percent by 2020. Add to that expenses incurred by local governments and states, and the overall government portion of health care comes in at 49 percent, according to the report. Source: PBS

Conversely, the study found that last year's national health spending grew at the slowest rate ever recorded -- 3.9 percent -- due in large part to the lingering effects of the recession. Millions of Americans who lost their jobs skipped expensive but oftentimes needed medical procedures. Of course, the Obama Administration spun the study results to highlight the low growth rate, but again, that was due to recession and nothing else.