Now he tells us: Medicare’s chief actuary says rosy ObamaCare projections are complete nonsense

by editor on August 10, 2010

The Obama administration just got caught trying to slip another one past the American people. They used data in the annual Medicare Trustees Report to prove that that ObamaCare would inject new life in the Medicare monster.

Unfortunately for the President, that argument didn’t hold up when economics21.org analyzed the report and learned that Medicare’s own chief actuary disagrees. Strongly disagrees, in fact. He says they underestimated future costs by 68%.

To repeat, the administration underestimated costs by a remarkable 68%:

medicare-costs-68-percent

68%! They underestimated Medicare costs by a remarkable 68%.

“(T)he financial projections shown in this report for Medicare do not represent a reasonable expectation for actual program operations in either the short range. . . or the long range. . . . I encourage readers to review the ‘illustrative alternative’ projections that are based on more sustainable assumptions for physician and other Medicare price updates.”

These remarkable words are found, in all places, in the “Statement of Actuarial Opinion” in the back of the 2010 annual Medicare Trustees’ Report.

It is difficult to overstate how unusual this development is. The normal process with the annual Trustees’ Reports is for the Trustees to develop and publish the best available projections for the future finances of Social Security and Medicare. The respective Social Security and Medicare actuaries then sign a pro forma blessing of those projections, which is tacked to the back of the report when released to the public.

This year, the Medicare Chief Actuary clearly did not feel he could in good conscience sign such a declaration.

Our initial inclination was to criticize the Obama administration on this error. But on second thought, we say it deserves a little credit here. After all, they’re only off by 68% and that’s a lot closer than they’ve come on any of their other economic projections.

H/T: HotAir.com

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[…] Week  (March, 2010), the Medicare Doc Fix had not yet come up before the Congress. Medicare’s chief actuary claimed at the time the rosy Obamacare projections were complete nonsense. In reality, the Obama […]

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[…] Week  (March, 2010), the Medicare Doc Fix had not yet come up before the Congress. Medicare’s chief actuary claimed at the time the rosy Obamacare projections were complete nonsense. In reality, the Obama […]

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[…] Week  (March, 2010), the Medicare Doc Fix had not yet come up before the Congress. Medicare’s chief actuary claimed at the time the rosy Obamacare projections were complete nonsense. In reality, the […]

Necron_99
Member
Necron_99

No death panels my @ss… I was speaking with a friend of mine yesterday who is an attorney that specializes in medical contractual law and malpractice/malfeasance… the way he interprets the “Obamacare” regulations were summed up with a downcast shake of his head and the statement, “When the rationing of care starts, a clean living retiree will be refused treatment that could extend their life because they are not in the favorable age bracket to receive care, but a middle aged convicted and incarcerated meth addict (with maybe five years left on their life at best) will get it because they do fall into the accepted age bracket. It’s a complete and total travesty of justice. Meanwhile, people who had health insurance through their employer before this takes effect will be dumped on the government as wards of the state because the business can no longer afford reasonable employee coverage after being taxed into oblivion by the government penalties for being self-insured.”

MichiganVet
Member
MichiganVet

Think of Cash for Clunkers on steriods. What ever happened to “Cash for Caulkers”? Where is the leftover TARP and STIM-U-LUS money?

The Dems biggest success this year was giving their staff raises in light of a recession economy.

TERM LIMITS for ALL OF THEM – congress, staff, interns, EPA, judges!
mv

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Blues Junky
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Blues Junky

I don’t trust any politician as far as I can spit…but with all the lies that this administration has told, I’d like to have them within striking distance…

danybhoy
Member
danybhoy

Almost all gov’t projections are bullsh!t. The supporters of whatever needs to be made law OR built is sold to the people at a lowball price, but always goes over budget & is late as well. Almost nothing comes in on time & under budget.

Blues Junky
Member
Blues Junky

I agree, Danybhoy…but the figures of this nightmare were manipulated so much to get it through the door that the CBO itself came away looking irrelevant. Cost overruns are commonplace in gov’t spending…but the smoke and mirrors that this admin. uses to push their agenda takes it to a whole other level…like that of a side show at a carnival…

danybhoy
Member
danybhoy

Spot on, there was nothing honest about how Obama-care was done. Everything from the cost, availabilty, & what effect it will have on the Dr’s was 100% fraudulent. We know it won’t work, we know it will cost waaaay more then supporters say it will, & we know lots of doctors will not participate.

A larger point is that there is almost nothing the gov’t does that works as well it’s supposed to or costs what they say it should.