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View Diary: America’s health care cost slowdown and the disappearing debt (66 comments)

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  •  It's Worth Checking Out the CEA Report... (3+ / 0-)
    Recommended by:
    1BQ, TXdem, deepeco

    ...summarized here.

    For starters, Uncle Sam is already savings tens of billions of dollars just compared to projections from 2010:

    The recent slow growth in health care spending has substantially improved the long-term Federal budget outlook: The Congressional Budget Office has reduced its projections of future Medicare and Medicaid spending in 2020 by $147 billion (0.6 percent of GDP) since August 2010.  This represents about a 10 percent reduction in projected spending on these programs.
    And the benefits, if these lower-than-expected growth rates continue, are potentially substantial:
    In the short run, slower growth in health spending is a positive for employment: The slow growth in health care costs has reduced employers’ benefit costs, increasing firms’ incentives to hire additional workers.  Available estimates suggest that these gains could be substantial, although their magnitude is uncertain.

    Over the long run, slower growth in health spending translates directly into higher wages and living standards: If just half the recent slowdown in spending can be sustained, health care spending a decade from now will be lower by $1,400 per person, a benefit that workers will realize in the form of higher wages and that federal and state governments will realize in the form of lower costs.

    •  "Saving from projections" - also known as -- (0+ / 0-)

      the projections were wrong.

      LG: You know what? You got spunk. MR: Well, Yes... LG: I hate spunk!

      by dinotrac on Sun Nov 24, 2013 at 07:48:51 PM PST

      [ Parent ]

    •  More likely a benefit that employers will realize (0+ / 0-)

      in reduced spending on personnel costs. There's no incentive for them to use it to increase wages.

      "All governments lie, but disaster lies in wait for countries whose officials smoke the same hashish they give out." --I.F. Stone

      by Alice in Florida on Sun Nov 24, 2013 at 08:40:56 PM PST

      [ Parent ]

    •  Health Care Costs Declining (0+ / 0-)

      Anyone that believes that any savings in health care costs, on the part of employers, will be passed on to employees, via higher wages and benefit packages -- those people must still believe in the tooth fairy.  Like everything else, any extra money will go right into the pockets of the corporations.  The 1% will do great, while the rest of us will still suck on the hind t*t.

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