Thanks To Obamacare, America Will Save $2.6 Trillion In Healthcare Spending

As Obamacare continues to survive court challenge after court challenge (and the Republican’s 50+ attempts at repealing), some good news about the landmark healthcare law comes today from the Urban Institute’s Robert Wood Johnson Foundation.

A new study conducted by the Foundation shows that healthcare spending in the United States, over a 5 year period, will be reduced by $2.6 trillion. The study was a correction to the Centers for Medicare and Medicaid Services, which reported inaccurate spending predictions based on a flawed view of consumer spending and attributes of the landmark healthcare law:

When CMS originally made those projections, they really thought the slowdown in health-care spending [growth] was mostly due to the recession, and afterward we’d see a return to the higher rates of spending growth — and that didn’t really happen.

Although Obamacare isn’t completely responsible for the slow in healthcare spending, the study does note that that the healthcare law and the “ripple effect” of its policies are having an effect with Medicaid and other programs that is causing more financial stability in the markets.

The hospital readmissions program (which is covered by federal reimbursements) saw a sharp decline in these rates once Obamacare came into law, saving the country billions. That’s just one example of how the healthcare law has been saving the government tons of money it otherwise would have been throwing away for frivolous expenditures.

So, in other words, the process may be cyclical, but Obamacare is certainly speeding it up (or slowing down the costs, in this case).

The Kaiser Foundation, in 2013, also came to the conclusion:

The hangover from the Great Recession has had significant effects on consumer spending in general, and health spending specifically … [The Affordable Care Act] has clearly had a large and direct effect on slowing down health spending in Medicare. Its effect on the rest of the health system is somewhat more speculative, but I believe it’s real.

Only one thing is for absolute certain: Obamacare has no skyrocketed healthcare spending. It may not be the only thing slowing it, but it certainly isn’t bloating the budget.

So when Republicans scream that the healthcare law will add to the deficit, add to the debt, created a bloated budget, or anything else they want to throw out in the air, the should read this study.

All the doom and gloom the GOP has peddled for the last six years has shown to be nothing but right-wing conspiracy talk, drummed up to instill fear in people who are scared of a “socialist” takeover of healthcare.

Featured image via Joe Readle/Getty Images