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InsiderOnline Blog: April 2014

ObamaCare’s Regulatory Costs Are Two and a Half Times Its Benefits

ObamaCare creates more paperwork, forces individuals to buy insurance they don’t want, forces many employers to change their coverage (or pay a fine), incentivizes less work, and incentivizes employers to shed full-time workers. Sam Batkins makes an estimate of these various burdens:

From a regulatory perspective, the law has imposed more than $27.2 billion in total private sector costs, $8 billion in unfunded state burdens, and more than 159 million paperwork hours on local governments and affected entities. What’s more troubling, the law has generated just $2.6 billion in annualized benefits, compared to $6.8 billion in annualized costs. In other words, the ACA has imposed 2.5 times more costs than it has produced in benefits. […]

For what the administration has released, the public knows the law has $6.8 billion in recurring annual costs, compared to just $2.6 billion in monetized benefits. For comparison, higher taxes from the “American Taxpayer Relief Act of 2012” will impose an additional $42 billion in burdens this year. ACA regulations will compound that figure, resulting in close to $49 billion in burdens from new taxes and ACA implementation alone. [American Action Forum, March 24]

Posted on 04/03/14 06:11 PM by Alex Adrianson

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