Reduced Use of Health Care Could Cut Costs—That Is, Until Obamacare Makes Its Mark

Kathryn Nix / August 05, 2010

The President signed Obamacare into law last March as an attempt to get spending and costs under control, but the new law will likely fail at this mission.

In fact, The Wall Street Journal reports that, in recent months, Americans have already begun to cut back on health care usage, which has the potential to lower the cost of medical care and insurance premiums. In a truly ironic turn of events, Obamacare may actually keep spending on its upward trajectory.

The drop in health care usage could be a result of several factors at play. First, there’s the economic downturn and associated loss of coverage. But according to Carl McDonald, an analyst for Citigroup Investment Research, the drop in usage is more pronounced than those of comparable recessions in the past. (more…)