Reports from the United States indicate that the federal government of the nation will spend approximately $2.6 trillion less on healthcare than was imagined over a five-year period.
And this dearth of expenditure will be particularly controversial, as it follows the passage of ‘Obamacare’; a somewhat controversial and contentious healthcare insurance policy passed by the Obama administration.
The full title of Obamacare is The Patient Protection and Affordable Care Act, and the legislation was signed into law by President Barack Obama on 23rd March, 2010.
Information regarding the $2.6 trillion deficit has emanated from a new Urban Institute study.
The report also indicated that there is evidence that the growth in health spending has again slowed after it spiked in 2014.
After the information surfaced, the Obama Administration will now be concentrating on defending its healthcare policy, and demonstrating that the legislation is not responsible for this massive reduction in government expenditure on healthcare.
Commenting on the issue, the Urban Institute report stated that if savings end up being due to Obamacare, “then slower growth in national health spending may persist beyond current projections.”
Conversely, the organisation was more positive about the future of healthcare in the United States if the $2.6 trillion deficit had been caused by an economic slowdown.
“But if the economy was the primary driver of slower growth, then we should expect a return to faster growth with a robust recovery,” according to the report.
The Institute has collated data from the federal Centers for Medicare and Medicaid Services, in order to produce the report, and was funded by the Robert Wood Johnson Foundation.
In 2010, when the Affordable Care Act became law, federal health regulators estimated that national health spending would top $4.614 trillion by 2019, the report noted.
But now that year is expected to see just $4.02 trillion in health spending — a difference of more than $600 billion, according to the report.
From 2014 through 2019, the cumulative difference between what is now expected will be $2.6 trillion lower than what was originally projected in 2010 for the same time period, according to the Urban Institute.
And pending on Medicaid — the joint federal-state health program for the poor — will be $1.05 trillion lower than originally projected during the time span, a 23% difference.
“This was partly due to the Supreme Court decision in 2012 that made ACA Medicaid expansion optional for states and significantly reduced enrollment projections,” the report asserted.
It seems that the United States is facing precisely the same sort of financial difficulties in the healthcare system which have replaced the NHS in recent years, Even if there are fundamental differences in the approach to health matters between Britain United States.