New Study Shows Obamacare’s Huge Additions to Federal Deficit

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New Study Shows Obamacare’s Huge Additions to Federal Deficit A study released this week by Charles Blahous, one of two public trustees of Medicare and Social Security, once again shows that Obamacare increases federal deficits and significantly worsens the nation’s fiscal outlook. According to the study’s most optimistic scenario, the health law will increase federal spending by $1.16 trillion and increase the deficit by $346 billion between 2012 and 2021. The worst case—and most realistic—scenario: an increase in spending of $1.24 trillion and $527 billion in new deficits. In an accompanying video, the Mercatus Center explains the math that led to this dire situation. Obamacare’s failure to reverse the federal government’s abysmal financial situation is not to be taken lightly. The legislation’s primary goal was to expand health coverage. However, Blahous points out that not only were the law’s fiscal benefits “consistently presented as a primary motivation for enacting legislation,” but it was also widely believed that health care reform was inextricably tied to reversing the fiscal outlook, since a significant portion of the nation’s long-term deficits are caused by federal spending on health care. Blahous makes clear: “Because of the federal government’s untenable long-term fiscal outlook under current law, and because of the political difficulty (and thus infrequency) of comprehensive health care reform, it is essential that such reform unambiguously and significantly improve the government’s fiscal outlook.” Legislation can, of course, succeed at deficit reduction but perpetuate fiscal irresponsibility—by increasing spending but raising taxes or cutting in other areas by a comparable amount. This scenario, which maintains the trajectory of unaffordable federal health spending, is exactly what will come to fruition under Obamacare. And it is unacceptable. Watch the video on The Foundry>> Chart: Obamacare’s Bundle of Budget Gimmicks Side Effects: Obamacare Expands Medicaid, Makes A Big Problem Worse In Pictures: The Impact of Obamacare Acupuncturists Lobby HHS to Be Included in ‘Essential Health Benefits’ Look Out! Obama Puts IRS to Work on Implementing Obamacare   $346 Billion INCREASE TO THE DEFICIT BETWEEN 2012 AND 2021 Obamacare is "bending the cost curve" up, not down. Learn More >>     About The Heritage Foundation Founded in 1973, The Heritage Foundation is a research and educational institute — a think tank — whose mission is to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense. The Heritage Foundation | 214 Massachusetts Ave NE, Washington, DC 20002 | 202.546.4400 | heritage.org