Code Red: Two Economists Examine the U.S. Healthcare System

March 17, 2010

The 3000 Percent Solution

Filed under: Budget,Health insurance,Health Reform,Health spending — David Dranove and Craig Garthwaite (from Oct 11, 2013) @ 9:24 am

Republicans are having a field day mocking the President for stating last night that his health reform proposal would reduce insurance costs by 3000 percent.  (So instead of you paying $10,000 for insurance, the insurance company pays you $290,000!)

If you missed it, here is the clip.

He of course meant to say $3000.   Still pretty impressive, until you find out that he is making up this figure as well.  The truth was outed by the Associated Press just six hours ago in this article.

It seems that the Business Roundtable did an analysis last year and concluded that some combination of Democratic healthcare reforms being considered at that time could reduce premiums by as much as $3000 in the future, compared with the current trend line.  They did not comment on the specific reforms in the proposal awaiting House approval and the CBO is generally pessimistic about this proposal.

Enough said.

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