Everybody knows that the new health reform program is expensive. But just how expensive is it?
Start with the direct costs. The Congressional Budget Office estimates that spending for all the different parts of ObamaCare (health insurance subsidies, Medicaid expansion, administrative costs, etc.) will come to about $2 trillion over the next ten years. That works out to about $2,000 for every household in America, every year.
You won’t get a bill for your share of all this, however. Most of the money is collected in hidden ways, such as taxes, health insurance plans, drugs, medical devices and even tanning salons. The cost to you will show up in higher prices, lower wages and (for the elderly) less access to medical care.
That $2,000, however, is just the beginning. Turns out there are indirect costs as a result of the harm done to the economy. For reasons I’ll explain below, ObamaCare will cause people to work less and produce less. In fact, University of Chicago economist Casey Mulligan estimates ObamaCare lowers the return from working by 10%. As Harvard economics professor Greg Mankiwexplains, that implies a long term loss to the economy on the order of 5% of GDP – or more than $800 billion a year at current prices.
The indirect cost to the economy, then, equals more than $8,000 per household per year – or four times the size of the direct budget outlays.
Adding the two together, the total cost of ObamaCare comes to more than $10,000 per household per year!
ObamaCare Is Costing A Lot More Than You Think.